Wednesday, January 4, 2012

Rumors of dubious QCOM accounting practices; what took them so long?

The last time risk premiums were this high (in 1974) the S&P index rose by 31.5% in 1975 and 19.1% in 1976.

Rising interest rates will accelerate and hasten the almost inevitable rotation out of bonds and into stocks (as losses mount).

Rising interest rates will benefit the savings class, who will have more money to spend.

Market sectors with balance sheets that have an imbalance of rate sensitivity on the asset side -- like banks and insurance stocks -- will thrive as interest rates rise.

Rising interest rates will encourage fence-sitters who plan to make durable purchases (e.g., housing and autos) to take the plunge and buy.

Rising interest rates will signal to many that the economy is advancing.

Run, don't walk, to read monthly commentary from Pimco's Bill Gross, "Towards the Paranormal."

A year ago, I predicted Romney would be the next POTUS. Despite the closeness of the Iowa race, I continue to strongly expect Mitt Romney to be the Republican presidential nominee and to become the next president.