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Pragmatic Capitalism

Practical Views on Money & Finance

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It’s 2000 & 2007 All Over Again

“I have to get into this market; otherwise it’s just dragging on me” (A portfolio manager quoted in the Wall Street Journal just prior to the March 2000 peak in the S&P 500.)

The 4 Dubious Assumptions Driving the Market Higher

By Comstock Partners Despite the problems facing the U.S. economy, the dysfunction in Washington and slowing global growth, stocks continue to rise on the basis of what we view as false assumptions.  These assumptions are as follows: 1)     Since almost every central bank in the world is aggressively easing, the market cannot go down. 2)    Although the U.S.… Read More

The Disastrous Consequences of not Raising the Debt Ceiling

As we face another brutal fight over the federal debt ceiling at a time when the economy still remains fragile, the stock market is oddly complacent. Even if the debt ceiling crisis is resolved, the result would be some combination of spending cuts and tax increases that would weaken the economy in 2013.

It’s Not All About the Fiscal Cliff….

While the fiscal cliff problem has absorbed almost all of the financial media comment since the election, there’s a lot more to the stock market decline that has virtually gotten lost in the discussion. The market actually topped on September 14th and has trended down ever since.

Why the Market Looks Toppy

The market is giving signs that it has discounted any possible good news and that the rally is over. Europe has been in one of its periodic, but temporary, quiet periods that has encouraged the market while slipping further into recession.