Maximum Opportunity

Durable goods orders have slowed and second quarter GDP was revised to a pathetic 1.3% growth rate.  Yet Two Reasons to expect Economic Growth to Increase (Calculated Risk) includes housing.

“All the while, the market continues to grind higher, disbelieved by a significant percentage of market participants…How can we reconcile these apparent contradictions?  In a word, it is the Fed.  My read is the only thing standing between you and an ordinary cyclical recession — including a 20-30% drop in the SPX — is monetary policy.”  Ritholtz

“With a “titanic battle” underway between inflationary and deflationary forces, Gross’ own expectation is that inflation is about three times more likely…”  Advisor Perspectives

Bonds are like internet stocks in 1999 on a valuation and sentiment basis.  How does that end well?  Reuters

Vale says iron ore won’t go below $100 – 40% of Chinese output is already off the market at Mining.  I’ll suggest a Chinese growth re-acceleration is premature, though BHP says sees China’s growth strengthening in H2 at ReutersMaximum opportunity for resource investors would be for a bottom in materials stocks to coincide with the end of the current (early) cyclical gold run.  It never turns out so clean, but we’ll keep watching.

“I’ve long held the stance that its brilliant business model makes it the perfect silver stock.”  Scott Wright at Zeal.

Enjoy your weekend.


5 thoughts on “Maximum Opportunity

  1. Boy, oh boy, does, Mr Ritholtz, hit it out of the ballpark?
    I do not much care for him, but he has a brilliant mine…

    Not many comments from our informed MSM, about the revision of the GNP! Does Obomba corps advance the truth or an ideology ? Not a difficult question…

    • Mr. Ritholtz is a pragmatist to follow; he slaps the left and the right equally. I had my picture take with him at a book signing party.

      Hussman’s comments on GDP and recession this morning were not good.

  2. Hans, as an armchair Austrian economist (and longtime Ritholtz reader), I was in the vocal housing bubble crowd last decade. Ritholtz will tell you we are just bumbling along the bottom in housing. I am a bit more positive. Supply has totally dried up! Perhaps a housing post in in order…

  3. Mr Butler, that make make two Austrian economist (well I am still in training)…

    I side with Ritholtz on the housing industry and believe that homes are being kept of the market…

    The young consumer is either living at home or renting…
    I am not sure who is going to bid up real estate prices..

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