The Emperor's Old Clothes
Kevin Cook here, starting the week off for Steve and still wondering what he said to Bernanke in Jackson Hole to quash QE3.
As I write, the Eastern seaboard still battles Hurricane Irene as it devolves into a tropical storm. Some lives were lost and though the winds slip below 70 mph, power outages are at record levels and flooding could persist for days, affecting millions and causing major disruption to thousands of businesses and possibly to financial markets. The strong Wall Street close Friday seemed to strongly discount the storm's potential impact, but the damage has yet to be fully assessed. Our thoughts are with all affected in hopes that life, property, and livelihoods remain safe and secure.
What did we learn from the most over-rated of speeches ever? Ben is as optimistic as ever. Remember in June, he turned a little worried, even perplexed, about the stalling economy? And he also warned us then—with an eye toward Congress—that budget wrangling could hurt the recovery even more. Seems nobody in Washington was listening.
While acknowledging the healing required for the systemic banking/housing crisis, arguably the most important economist in the world said "the growth fundamentals of the US do not appear to have been permanently altered by the shocks of the past four years." Now that's what I'm talking about!
Though there was little new here for stimulus junkies to chew on, there were some fresh remarks directed toward the Europeans, and Congress again. He trusts "that our European colleagues fully appreciate what is at stake... and will take all necessary steps." Translation: could we please have some shock-and-awe bond buying to shore up your markets!
As always, markets are a confidence game, whether in D.C. or Brussels. Bernanke and Co. have tools and they are not afraid to use them—if and when the time comes. That's monetary poise and confidence money can't buy. To see how I confidently played the rally last week and bought the fear right after we found no QE3 prize in our cereal, see my piece below about the speech.
Featured Commentaries on Zacks.com
• GDP: Growth Revised Down, Quality Up
• The Emperor’s New Speech
• Saddle Up for the Gold Bull
Senior Stock Strategist, Zacks Investment Research
The Next Great Market Call
Steve Reitmeister's trading service called the August 4 market crash on August 3, racking up gains while most investors were hit with a sledgehammer. Sadly, only a few shared his bold move, because his and other market-beating Zacks services are closed to the public.
Today you can peek inside all of them, and get their up-to-the-minute moves at a critical time. Through bad and good years, they crank out scores of double-digit winners. Only until Midnight, Tonight, Monday, August 29, their picks are backed by the boldest guarantee we ever made.
Get buys and sells now >>
Today's Top Stories: Monday- August 29, 2011
ZACKS RANK BUY STOCKS
Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...
ZACKS MUTUAL FUND RANK
BEST OF ZACKS EQUITY RESEARCH
NEW ZACKS VIDEOS:
BEST OF ZACKS.COM PARTNER COMMENTARY
VIP "ThisColoradKid" is roping in some returns on his BUY calls in (NKTR), (RDN), (TRN) and (VQ). Read More...
Visit the Zacks.com Facebook page and get the latest insight on stocks and the market:
Zacks On Facebook
Get the Zacks.com newsfeed delivered straight to your Twitter account:
Zacks On Twitter
OTHER ZACKS RESOURCES:
Manage your Profit from the Pros subscription:
If you enjoy this e-mail newsletter, then please pass it along to a friend. Simply forward them the link below to sign up for their own free subscription. THANKS!
Refer a Friend
Executive VP, Zacks Investment Research
p.s. What is the mission for Zacks Profit from the Pros?
To find out how we will help you become a more successful investor, click here.
Visit /performance for information about the performance numbers displayed in this newsletter.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
To contact us by mail:
Zacks Investment Research
Attn: Profit from the Pros
111 N. Canal St., Suite 1101
Chicago, IL 60606
To unsubscribe from receiving "Zacks.com Profit from the Pros"
e-mail newsletter, Click here....