Bill Rutherford Quoted In Wall Street Journal Blog
Postponing Doom II: Economic Boogaloo
http://blogs.wsj.com/marketbeat/2007/08/17/postponing-doom-ii-economic-boogaloo/
Posted by David Gaffen
It was telling that when the Federal Reserve eased the discount rate this morning and made noises about readying for a potential interest-rate cut, stock futures weren’t the only asset class that rallied, but global stocks, oil, commodities, gold and swap indexes and other derivatives were all higher.
It underscores, again, what cheap credit has meant to the economic growth in recent years and suggests the Fed likely has more work to do to head off the credit conflagration. But economists believe the actions, and even subsequent ones, won’t relieve the economic pressure entirely.
“The carnage is far from over,” write analysts at Comstock Partners, who note that some are minimizing the current problems as market-oriented only. “Some studies indicate that as much as one-half to two-thirds of the increase in output and employment since the last recession bottom were a result of housing, housing-related activities and MEW [mortgage equity withdrawals].” […]
2nd Quarter 2007
Rutherford Investment Management, LLC
Newsletter: 2nd Quarter 2007
You Can’t Blame Paris
Proving that crime pays, Paris Hilton was recently released from jail after serving a truncated sentence because of time off for good behavior (a first!). Well coiffed and turned out, she left the jail house, doing a reverse perp walk, into the arms of her family and publicists who delivered her to Larry King and other shows reportedly for cash. But you can’t blame Paris because she was in jail when all this happened. And you can’t blame Paris for the sub prime mortgage lending woes that have bedeviled the markets… Download Newsletter
3rd Quarter 2007
Rutherford Investment Management, LLC
Newsletter: 3rd Quarter 2007
Volatility Returns To Markets
The third quarter of 2007 saw volatility return to the markets. Since the crash of 2000-2001, the
markets had returned to a period of more normal volatility with the VIX (Volatility Index) in the
ten to sixteen range. With the onset of the sub prime lending problems and the almost complete
disruption of the credit markets, the volatility index rose over 30, to levels not seen in five years, and stocks suffered…. Download Newsletter
1st Quarter 2007
Rutherford Investment Management, LLC
Newsletter: 1st Quarter 2007
Stagflation?
As the Fed battles inflation and a slowing economy, the threat of stagflation raises its head.
Stagflation is not a word that has been in wide use lately, but it refers to that time in the 1970s
when the economy suffered from inflation and a slowing economy at the same time. It was a
very uncomfortable time as workers at every level saw their purchasing powers erode and lost
their jobs because of a poor economy… Download Newsletter
4th Quarter 2006
Rutherford Investment Management, LLC
Newsletter: 4th Quarter 2006
Shock and Awe
In my earlier letters, I have expressed concern about the slowing economy, inverted yield curve, weakening capital spending and housing market. In the middle of the year, we had a sharp drop in the market owing to a sudden lack of confidence in the Federal Reserve, and a war in the Middle East. Markets dropped sharply, clients expressed concern… Download Newsletter
3rd Quarter 2006
Rutherford Investment Management, LLC
Newsletter: 3rd Quarter 2006
Dow Breaks Out to Record High
Tuesday, October 3, 2006, after many attempts, the Dow Jones Industrial average broke out to its
all time high. While the thirty stocks of the Dow made a statement, the S&P and NASDAQ lag.
To understand this dichotomy of a record high Dow, and a lagging S&P and NASDAQ, we need
to go back a few years… Download Newsletter