A Bourse Diary

Thoughts on stocks, speculation and ... life

Monday, December 18, 2006

Fund managers once again disappointing - but why this time?

Everytime there is an excuse for the weak performance of the professional fond managers - unforeseeable events, political tensions, unexpectedly high oil prices or the unlucky action of the fed, and many more of course.

Why this year? - quite simple, as it seems: they were too cautious, holding too much cash since the cold shower from (early) summer. This at least suggests TheStreet.com columnist Brett Atends in All-Star Managers Fail to Make This Year's Cut.

There is something true about it.

Tuesday, December 12, 2006

Marc Faber points at bubbles

Marc Faber in The Dow Jones all time high and the coming correction! :

Bubble trouble

I hope that everybody understands that this is in the long run a suicidal monetary policy because it leads to one asset bubble after another. So, after the NASDAQ in 2000 and housing in 2005/2006, where is the next big bubble going to occur? In my opinion, two asset classes stand out as asset bubble candidates: grains and Asian assets.

Wheat and corn have led the grain and agricultural commodities price advance over the last two months. But now, it is very likely that the entire sector including especially soybeans, sugar, coffee, and cattle, will follow. Other 'bubble candidates', are Asian currencies, stocks, and real estate prices.

Disclaimer: All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and are in no way intended to serve as personal investing advice and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Readers should not make any investment decision without first conducting their own thorough due diligence. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. While the information provided is obtained from sources believed to be reliable, its accuracy or completeness cannot be guaranteed.