Tuesday Musings – First Quarter 2010

 

• Wha happened to 2000 $ gold? Yes, a rally last week as gold ceased its move lower. Combination of strength in dollar and higher Treasury yield moved gold. Not sure if it will last.
• For the week big Market move after the pillage of the middle class. 48% of Americans think, according to the WSJ, this is a bad health plan versus 36% it is a good idea. 
• Teddy K killed Nixon’s national health care bill in 1974, according to Ben Stein, speechwriter at the Nixon White House. Now TK’s labeled the Father of National Health Care. Dems think they now have 32 million voters locked up.
• Market Up for the quarter after a not so stellar start in January. Stocks stall as markets hit 18 month high- up 4% for the year.  1,2,3,4… that’s it.
• Health care taxes- brokers look at munis for their higher income client accounts. Starting 2013 new Medicare tax 3.8% on wages and other forms of income. It isn’t unreasonable to assume upper middle class taxpayer being dinged into the 50% tax rate.
• If you have a Medicare Advantage plan under the new health care act your insurer may cut extra benefits or increase co-payments. Also, those earning $85,000 or more will pay higher Part B premiums. (It is unclear if that includes pensions, social security and unearned incomes).
• China not ending their stimulus until recovery is certain, according to central bank governor Zhou. Article in Time with photo essay of an entire empty NEW city in China.
• New York Times, bastion of liberals, reported Obama declares that the health care bill marks the end of the age of Reagan. Obama’s campaign pledge of creating a ‘bottom up economic growth as opposed to the trickle down economic growth.’ (I’ll let my economic experts explain that to me.)
• $700 billion in high yield corporate debt coming due in 2012. Opppppps.
• Todd Harrison reports, ‘We are in a cyclical bull market within a secular bear.’ My comments –Todd is full of bull since no one knows for sure until it is behind us and we are finished with it or it is finished with us.
• Good Question! Why are the emerging markets of the 90s the same emerging markets today?
• Retirees 75 and over spend almost 50% less than those 65.
• Citi has tough time with its yard sale. Shorts at work here. BofA forced FORCED by MA AG to rework mortgage loan balances for 1,000s.
• Has anyone been in a Sears or K Mart lately? You neither? Lambert lambasted in Businessweek.
• Home Depot I visited packed on a Saturday morning. Employees admit more shoppers, especially the weekends over one year ago.
• Thursday market wheels come off. Several clients call asking for ‘More speed, Scotty.’ Where? The dollar strengthens, Greece & Germany feud and boom a triple point day goes ‘poof’! Friday 65 easy up points goes away as does the day- traders start to take money off the table.
• 3 More Banks fail making it 41 YTD.
• Have you registered for Saturday’s webinar? Go to link at website. Today last day,
• We all welcome Spring!