Volkswagen and the free market
Here’s something interesting. At an intraday high of 1,005€ (it was trading around 200 just a few days ago), Volkswagen has been for a few minutes the biggest company in the world for market capitalization. A whopping 380bn$. For a car-maker!!! Why this?
Pretty simple. The whole hedge fund world was short VW because it was […]
Time to buy?
The FT is a great newspaper, I think the best, and publishes extremely interesting and thought-through articles. I’d like to share one with you, quite provoking on potential future scenarios.
A funny snippet here:
“…the wealth of the average 50-year-old is $900,000, of which only a quarter has anything to do with financial assets. Worryingly, however, almost […]
Should I buy equity now?
Hopefully, the acute phase of the crisis is over. With the EU governments investing around 2trn€in different ways to sustain the credit markets (either through shares purchase, account guarantees etc), it seems that the risk of a systemic collapse of the financial world is now smaller than a few weeks ago. For this reason, markets […]
TV Ad rates to 15 year low in UK
Not really surprising, but interesting on the FT. TV Ad rates are now back to 1992 levels. We know advertising is a cyclical business, and no surprise is turning downward so quickly in such challenging (to say the least) economic environment. Also, the FT says that 35% of companies cut ad budgets for the 4th […]
What next?
You cannot rule out a big one-day market crash like the 25% fall in 1987. With all that the central banks and the governments are doing, markets are in free fall, down 20%+ in the week, and everybody is panicking. It just takes very little to break the whole system into a one day big-meltdown. […]
S&P starts with an 8
839.80
S&P touched 839 today, time to cash in the second pizza. Time to go long the market? I doubt… It’s better and safer to let the dust clear, even if this means potentially missing a 20% or plus upside. The situation is so dire, that you don’t really know what’s next. Also, from an economic […]
Bank of America 10bn$ capital raise
How on earth a bank that spends 50bn$ to buy Merrill Lynch would after a month need to raise 10bn$ at a discount of some 20/30% versus market price, diluting existing shareholders, in a market that is extremely tight on cash? It seems to me that some people might not have understood how serious the […]
S&P below 1,000
Just a quick update on the bet I made with a friend of mine I hinted to a few blogs ago. I was giving the S&P 12 months to touch 1,000 (at the time I made the bet, the S&P was trading around 1,300), and it just touched it yesterday, closing at 996. I’ll collect […]
Don’t touch the equity
My view is that it’s not over yet. Whatever things are happening (Brown bailout of UK banks, US bailout of US banks, EU bailout of EU banks), it’s not the ninth inning yet.
The crisis is moving from wall street into main street. Consumers are stretched, a lot of corporates are doomed to fail or suffer […]
Meltdown Monday
It was another black Monday for Wall Street after the Congress hasn’t passed the mother of all bailouts. I will skip the details, as the whole press world is doing already a very good job at covering what’s happening.
Just one quick point. The Dow closed at the very bottom, lacking the support of the short […]