Market Reflections

Thoughts, ideas and musings on current state and evolution of financial markets

What Drives the Market – Supply/Demand, Speculators … or sometimes the Government?

admin | January 26, 2009

Coming to power Ms. Pelosi promised to take care of the high gasoline prices. By May 2008 she practically doubled them! Facing re-election in few months Ms Pelosi and her compadres in Congress started feverously holding hearings with variety of experts from the industry and around it.
A host of different theories emerged to explain the [...]

Advertisement disguised as forecast or analysis

admin | January 19, 2009

Some time ago I noticed that few weeks before the end of a quarter analysts of prominent equity brokers tend to come up with unexpected downgrades with justifications like “Downgrading Nokia because people are using less cell phones next year”. Retail investors sold Nokia believing that the reputable brokerage with large research staff knows more [...]

Can you trust anyone with your money?

admin | January 12, 2009

Guarantees of outrageous returns, fraud and illegal activities flourished last year in the financial services industry. While not a new phenomena, frequency and amounts usually increase when the real returns are tougher to get. Whether the perpetrators are government certified or not does not seem to make any difference. Likewise, makes no difference whether they [...]

Rich did not get richer only members of US Congress did

admin | January 6, 2009

A turbulent year proved wrong the bit of common belief that rich are always getting richer. Most of the wealthy lost a lot more than folks considering themselves poor and some lost all. Dramatic losses are attributable to lack of any risk management and due diligence by the folks who suffered. They failed to apply [...]