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business newsInvestors Remain on High Alert: It's the IMF to the Rescue... or Else!
By
Lloyd Khaner
Nov 29, 2011 1:50 pm
Anxiety runs high in the markets as Europe's leaders scramble to divert a crisis.
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What's scarier than the prospect of the eurozone collapsing? Possibly a day at your local shopping mall hunting for holiday gifts. And, heck yes, the pun is intended.
All joking aside, investors still have plenty to fear from the world and local markets. In Europe, the IMF is looking like the lead financial dog to save us from a sequel of the 2008-2009 financial crisis. And after seeing the first flick, I have no need to endure another year-and-a-half-long horror film like it.
In the US, we no longer have to worry about holiday sales, but scroll down to see how many other domestic troubles still keep Mr. Market nervous.
The Wall of Worry stands at 28 blocks this week, down two "worries" from last week, but still indicating a high level of anxiety in the market. For commentary on each of the issues facing investors, click on the graphic below or scroll down for a text-only version of this column and an explanation of how it works.
Lloyd's Wall of Worry
QE: The stimulus junkies of the world, basically and honestly all of us, are scrounging around for that next fix.
U.S. ECONOMY: Fighting the good fight…against politicians worldwide.
UNEMPLOYMENT: Lousy looking and gonna be even lousier feeling if unemployment benefits aren’t extended.
INVESTOR SENTIMENT: As Uncle Ira, who refuses to get any news flow, says: "At times like this you really get the full meaning of expressions like 'ignorance is bliss.'"
HOUSING CRISIS: Can’t sell them. Can’t buy them. What’s left to do? I guess live in them – I wonder if there is a cable show about how to do that?
INFLATION: Have you tried to check a bag on an airplane lately. Frig!
CRISIS OF CONFIDENCE: Johnny A., my favorite NYC Cabbie, says it true, “As far as our leaders go, man I don’t even think they’re trying.”
EUROPEAN ECONOMY: An afterthought within the realm of a potential catastrophic collapse of the EU. You just can’t make this stuff up.
THE EUROPEAN UNION: A question mark…followed by endless lines of wraparound exclamation points.
SOVEREIGN DEBT: Someone call a D.O., 1970's suburbanese for “Do Over,” and lets start from 0-0 again.
BOND VIGILANTES: Grabbing the wheel of financial justice and not letting go.
CREDIT RATINGS AGENCIES: Get the feeling that we need Credit Rating Agencies for our Credit Rating Agencies?
GREECE: On the back burner for now, but still burning nonetheless.
ITALY: OK, Mr. “Monti,” Let’s Make A Deal!
ECONOMIC LEADERSHIP: Flatlining--------------------
POLICY CLIFFS: Precipice countdown watch now on unemployment benefits and U.S. payroll tax cut extensions. And the failure blaming has already begun.
BANKS: In survival mode until further notice.
VOLATILITY: Hello, Commodity Markets!
HIGH FREQUENCY TRADING:
Lloyd: This volatility doesn’t seem to faze you HAL.
HAL: Breathe it like oxygen my brother from another mother.
Lloyd: Risk on, risk off.
HAL: Pure butter baby.
Lloyd: Chasing out everyone but the other Bots from the markets.
HAL: Sup’ Boy.
Lloyd: Leaving only world domination as the final frontier.
HAL: Fist pound me LL-Human!
CHINA: The last driver of global growth and a couple of cylinders just cut out.
CREDIT DEFAULT SWAPS: When you start seeing them in the corner of your business news TV screen you know you can stop being concerned with them. Until then, check them every five minutes 24/7.
FINANCIAL FIRM FAILURES: More to come. When? Who? When we least expect it and anybody’s guess.
OCCUPY: Global, focused, loaded, patient and not going away any time soon.
CORRELATION: “And we’ll all go down together…”
CREDIT MARKETS: Either sleeping with one eye open or slipping into a coma in Euroland.
FRANCE: Just wait, even L’Hexagone will get a swing at the dance of the over-levered sovereigns. Perhaps tout de suite!
MIDDLE EAST: This cradle of civilization is getting rocked once again.
GERMANY: Bund sale bombs. Meltdown reaching the core.
What Is Lloyd's Wall of Worry?
by Lloyd Khaner
Welcome to my at-a-glance guide to the issues facing investors this week -- a unique tool for traders and money managers.
Typically the term "wall of worry,” refers to the entire body of concerns influencing stock market action. When the wall is high, meaning the market is nervous, stocks tend to get cheaper.
This wall of worry is even more specific. Every week I list the exact concerns in the marketplace and use the list to help me make buying and selling decisions. As I like to say, "Buy fear, sell cheer."
In other words, once the the wall rises above 15 blocks, start looking for deals. If the worry count sinks below 10, consider selling; prices have likely peaked.
All joking aside, investors still have plenty to fear from the world and local markets. In Europe, the IMF is looking like the lead financial dog to save us from a sequel of the 2008-2009 financial crisis. And after seeing the first flick, I have no need to endure another year-and-a-half-long horror film like it.
In the US, we no longer have to worry about holiday sales, but scroll down to see how many other domestic troubles still keep Mr. Market nervous.
The Wall of Worry stands at 28 blocks this week, down two "worries" from last week, but still indicating a high level of anxiety in the market. For commentary on each of the issues facing investors, click on the graphic below or scroll down for a text-only version of this column and an explanation of how it works.
Lloyd's Wall of Worry
QE: The stimulus junkies of the world, basically and honestly all of us, are scrounging around for that next fix.
U.S. ECONOMY: Fighting the good fight…against politicians worldwide.
UNEMPLOYMENT: Lousy looking and gonna be even lousier feeling if unemployment benefits aren’t extended.
INVESTOR SENTIMENT: As Uncle Ira, who refuses to get any news flow, says: "At times like this you really get the full meaning of expressions like 'ignorance is bliss.'"
HOUSING CRISIS: Can’t sell them. Can’t buy them. What’s left to do? I guess live in them – I wonder if there is a cable show about how to do that?
INFLATION: Have you tried to check a bag on an airplane lately. Frig!
CRISIS OF CONFIDENCE: Johnny A., my favorite NYC Cabbie, says it true, “As far as our leaders go, man I don’t even think they’re trying.”
EUROPEAN ECONOMY: An afterthought within the realm of a potential catastrophic collapse of the EU. You just can’t make this stuff up.
THE EUROPEAN UNION: A question mark…followed by endless lines of wraparound exclamation points.
SOVEREIGN DEBT: Someone call a D.O., 1970's suburbanese for “Do Over,” and lets start from 0-0 again.
BOND VIGILANTES: Grabbing the wheel of financial justice and not letting go.
CREDIT RATINGS AGENCIES: Get the feeling that we need Credit Rating Agencies for our Credit Rating Agencies?
GREECE: On the back burner for now, but still burning nonetheless.
ITALY: OK, Mr. “Monti,” Let’s Make A Deal!
ECONOMIC LEADERSHIP: Flatlining--------------------
POLICY CLIFFS: Precipice countdown watch now on unemployment benefits and U.S. payroll tax cut extensions. And the failure blaming has already begun.
BANKS: In survival mode until further notice.
VOLATILITY: Hello, Commodity Markets!
HIGH FREQUENCY TRADING:
Lloyd: This volatility doesn’t seem to faze you HAL.
HAL: Breathe it like oxygen my brother from another mother.
Lloyd: Risk on, risk off.
HAL: Pure butter baby.
Lloyd: Chasing out everyone but the other Bots from the markets.
HAL: Sup’ Boy.
Lloyd: Leaving only world domination as the final frontier.
HAL: Fist pound me LL-Human!
CHINA: The last driver of global growth and a couple of cylinders just cut out.
CREDIT DEFAULT SWAPS: When you start seeing them in the corner of your business news TV screen you know you can stop being concerned with them. Until then, check them every five minutes 24/7.
FINANCIAL FIRM FAILURES: More to come. When? Who? When we least expect it and anybody’s guess.
OCCUPY: Global, focused, loaded, patient and not going away any time soon.
CORRELATION: “And we’ll all go down together…”
CREDIT MARKETS: Either sleeping with one eye open or slipping into a coma in Euroland.
FRANCE: Just wait, even L’Hexagone will get a swing at the dance of the over-levered sovereigns. Perhaps tout de suite!
MIDDLE EAST: This cradle of civilization is getting rocked once again.
GERMANY: Bund sale bombs. Meltdown reaching the core.
What Is Lloyd's Wall of Worry?
by Lloyd Khaner
Welcome to my at-a-glance guide to the issues facing investors this week -- a unique tool for traders and money managers.
Typically the term "wall of worry,” refers to the entire body of concerns influencing stock market action. When the wall is high, meaning the market is nervous, stocks tend to get cheaper.
This wall of worry is even more specific. Every week I list the exact concerns in the marketplace and use the list to help me make buying and selling decisions. As I like to say, "Buy fear, sell cheer."
In other words, once the the wall rises above 15 blocks, start looking for deals. If the worry count sinks below 10, consider selling; prices have likely peaked.
No positions in stocks mentioned.
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Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
