Comments on: Mirable Dictu! Global Investors Overweight US Stocks http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors.html Sun, 22 Nov 2009 01:19:37 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors.html#comment-11491 Anonymous Thu, 17 Jul 2008 10:22:00 +0000 http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors-overweight-us-stocks/#comment-11491 Look out, Wall Street. Not all of the foreign investors want to BUY. Here come the peasants with pitchforks! Excerpt from Bloomberg:<br/><br/>------------<br/><br/>July 17 (Bloomberg) -- Pakistan stock investors threw stones and smashed windows at Karachi's stock exchange to protest the worst losing streak in at least 18 years, prompting intervention by the police and paramilitary officers.<br/><br/>Hundreds of investors walked out of the trading hall after the benchmark Karachi Stock Exchange 100 Index fell for a 15th day, extending a slump that has wiped out $30 billion of market value in three months.<br/><br/>"I have lost my life savings in the last 15 days and no one in the government or regulators came to help us," said Imran Inayat, 45, a protester and a former banker who retired early and says he lost 300,000 rupees ($4,175) on the market. <br/><br/>http://tinyurl.com/69pdch Look out, Wall Street. Not all of the foreign investors want to BUY. Here come the peasants with pitchforks! Excerpt from Bloomberg:

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July 17 (Bloomberg) — Pakistan stock investors threw stones and smashed windows at Karachi’s stock exchange to protest the worst losing streak in at least 18 years, prompting intervention by the police and paramilitary officers.

Hundreds of investors walked out of the trading hall after the benchmark Karachi Stock Exchange 100 Index fell for a 15th day, extending a slump that has wiped out $30 billion of market value in three months.

“I have lost my life savings in the last 15 days and no one in the government or regulators came to help us,” said Imran Inayat, 45, a protester and a former banker who retired early and says he lost 300,000 rupees ($4,175) on the market.

http://tinyurl.com/69pdch

]]> By: Anonymous http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors.html#comment-11482 Anonymous Thu, 17 Jul 2008 06:05:00 +0000 http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors-overweight-us-stocks/#comment-11482 Some of the "piling in" on financials may be due to the SEC release today heightening scrutiny on naked short positions (where the underlying is only "located" rather than actually borrowed). From a recent law firm research report: "The SEC issued an emergency order, affective Monday, July 21st , to enhance investor protections against “naked” short selling in the securities of Fannie Mae, Freddie Mac, and primary commercial and investment bank dealers. Individuals seeking to make a short sale in these securities must arrange to borrow [ed. not merely "locate" or have a "good faith belief that they can be borrowed"] the securities and deliver them at settlement. The SEC is also expected to create rulemaking to address these systemic issues. Broker-dealers will be required to institute special short selling procedures as to these securities and all firms should be particularly sensitive to fails in these securities." <br/><br/>It's also option expiration week, always good for an interesting ride. Some of the “piling in” on financials may be due to the SEC release today heightening scrutiny on naked short positions (where the underlying is only “located” rather than actually borrowed). From a recent law firm research report: “The SEC issued an emergency order, affective Monday, July 21st , to enhance investor protections against “naked” short selling in the securities of Fannie Mae, Freddie Mac, and primary commercial and investment bank dealers. Individuals seeking to make a short sale in these securities must arrange to borrow [ed. not merely "locate" or have a "good faith belief that they can be borrowed"] the securities and deliver them at settlement. The SEC is also expected to create rulemaking to address these systemic issues. Broker-dealers will be required to institute special short selling procedures as to these securities and all firms should be particularly sensitive to fails in these securities.”

It’s also option expiration week, always good for an interesting ride.

]]> By: Matt http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors.html#comment-11478 Matt Thu, 17 Jul 2008 03:45:00 +0000 http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors-overweight-us-stocks/#comment-11478 Ok, so can anyone explain the fundamentals behind today's piling into financials and out of oil and extractives? Seems perverse. I thought M Whitney of Oppenheimer made a great case on bloomberg tv yesterday morning, that the scene was looking bad, on fundamentals. My case for some time is that the recession would be a "jagged U". I think we're seeing an upjag, to be followed by verticals down, then flat, and nasty all along the road. <br/><br/>M Ok, so can anyone explain the fundamentals behind today’s piling into financials and out of oil and extractives? Seems perverse. I thought M Whitney of Oppenheimer made a great case on bloomberg tv yesterday morning, that the scene was looking bad, on fundamentals. My case for some time is that the recession would be a “jagged U”. I think we’re seeing an upjag, to be followed by verticals down, then flat, and nasty all along the road.

M

]]> By: Anonymous http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors.html#comment-11476 Anonymous Thu, 17 Jul 2008 02:27:00 +0000 http://www.nakedcapitalism.com/2008/07/mirable-dictu-global-investors-overweight-us-stocks/#comment-11476 Didn't I just read today (sorry, don't recall where) that the P/E of U.S. stocks is about 20, while the MSCI world index (ex US) has a P/E of around 11?<br/><br/>Guess those US overweighters are technicians rather than fundamentalists. Or else they can't resist the fat 15% dividend yield on Fannie Mae!<br/><br/>Of course, the BKX launching 17.27% (the biggest single-day pop ever) does suggest a break in the pervading pessimism.<br/><br/>In BubbleLandia, you've got to be light on your feet. Float like a butterfly, sting like a bee. We be No. 1! Didn’t I just read today (sorry, don’t recall where) that the P/E of U.S. stocks is about 20, while the MSCI world index (ex US) has a P/E of around 11?

Guess those US overweighters are technicians rather than fundamentalists. Or else they can’t resist the fat 15% dividend yield on Fannie Mae!

Of course, the BKX launching 17.27% (the biggest single-day pop ever) does suggest a break in the pervading pessimism.

In BubbleLandia, you’ve got to be light on your feet. Float like a butterfly, sting like a bee. We be No. 1!

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