In my last reading list post, we detailed articles on significant news items that were circulated internally at Fort Pitt, and that we wanted to share with Ramparts readers. Following up on that list, we outlined fresh consumer and investor related news below.
A Business Insider article by Wolf Richter, titled “A New and Different Housing Bubble is Taking Shape,” reviews the housing market, specifically the area of foreclosure sales, and the likelihood of another housing bubble.
Authors Harvinder Sian and Michael Michaelides feature a piece on ZeroHedge.com that details the decision to haircut Cypriot deposits. The article, “Cyprus: The World’s Biggest ‘Poker Game,’” discusses how debt restructuring efforts will impact the market and ongoing political risk.
“The Index Liquidity Riddle: More is Less” — this Wall Street Journal article by Justin Lahart examines the increase in popularity among ETFs and the risk of artificially inflated stock prices associated with the investment vehicle. The article highlights why we feel liquidity is overrated and why, at Fort Pitt, we continue to look for companies with big insider ownership.
Breaking the cynicism meter, in recent telecom news, Stephane Richard, head of a large European wireless carrier, explained, “We are in a period of changing consumer behavior. There are fewer [European] shoppers in search of the latest and greatest gadget and more of them are seeking lower prices on wireless service.” Read the full article here —“France Telecom CEO Blames Poor iPhone Sales on Frugal Customers.”
Steve Goldstein of MarketWatch.com holds a Q&A with former Reagan budget director, David Stockman, in the article, “Stockman Fires Back at Krugman, Critics.” Goldstein interviews Stockman on topics such as government spending, the gold standard, and the recent Cypriot banking issues.
Check back to Ramparts toward the end of the month, when we feature new articles that are meaningful and relay information of importance for investors today.