david trainerAs an adult, Halloween tends not to be that scary for me--usually.

But after last week’s stock market rally in the face of the deteriorating situation in Europe and the rest of the world, I am afraid…for the stock market and am reminded of fall/winter 1999.

The 4th quarter of 1999 was an absolutely fascinating and terrifying time as my naïve beliefs about market rationality and efficiency were proven patently false.

david trainerOf course not.

The issue is not what directors ignore. You cannot ignore something about which you are unaware.

The real issue is that most directors and investors are simply unaware of the many one-time items because they are buried deep in the annals of footnotes in annual reports or 10-K filings.

dtrainer / Tag: AIG, American, BAC, Bank of America, international Paper, IP / 0 Comments

david trainerNo more Mr. Nice Guy. It is time for Mr. Bernanke to break out the big guns in Jackson Hole this Friday.

Though the Federal Reserve Chairman has run out of ammunition for stimulating the economy, he can still take action to fix the economy.

david trainerToo much of the rhetoric surrounding S&P’s downgrade of US debt misses the largest and most important point made by S&P’s bold move: the U.S. financial situation is very bad and getting worse with no reconciliation in sight.

dtrainer / Tag: / 0 Comments

david trainerThe paramount innovation in the Federal Reserve’s statement yesterday was that it will keep interest rates low until at least the middle of 2013.

dtrainer / Tag: federal reserve, interest rate policy, Mr. Ben Bernanke / 0 Comments

david trainerThe market decline experienced thus far is closer to its beginning rather than its end. Recent market rises are likely just flashes in the pan.

There is nothing that politicians or regulators can do to prevent the natural price discovery that is critical to the long-term health of our capitalist system.

The market needs to go down again before it can sustain any future rise.