Thursday, November 29, 2007

Implications of the Housing Crisis and More Market Readings

* More Than a Correction - The homebuilder's index has been cut in half during over the past two years and the decline accelerated greatly in the past several months. The smart money thinks about this in bigger picture terms: what it means for retirement planning, spending patterns, and risk taking among baby boomers; what it means for tax income for schools and communities--and how this will impact public policy and voting behavior. With returns from home ownership and stock ownership seemingly volatile and uncertain, might we see a longer-term flight to quality/safety in terms of demand for yield? Demand for value and safe blue chips over smaller growth stories? The ripples from the housing decline may extend many years and touch quite a few sectors.

* Afflicting the Comfortable - The previous post was one of those more designed to afflict the comfortable than comfort the afflicted. So much of market success is asking the tough questions of oneself and one's trading and working, working, working on the fundamentals.

* Looking for Opportunity - The Kirk Report's latest linkfest includes quite a few gems, including looks at stocks at 52-week lows attracting insider buying and issues with the most buy and sell ratings.

* What Makes for Good Investment Blogs? - Abnormal Returns takes a look at what it takes to make the A-list.

* Worthy Blogs and a Trading Coach Interview - Those are among the latest update links from Mike.

* Rates and Fed Policy - Great observations from the Aleph blog.

* E-Trade Deal - Paul Kedrosky takes a two-part look at the implications of the Citadel deal.

* Fed Funds Decisions and Stocks - CXO Advisory blog examines research on how stocks move after decisions about Fed Funds.

* Playing BIDU With Options - Once again, Daily Options Report has a creative strategy for a popular trade.

* A Housing Option - Larry Nusbaum explores loan modification and offers some guidance for those with ARMs about to reset.

* Strong Economy? - The Big Picture questions the latest data.