The stock market now faces subprime mortgage related losses in banks as banks declare their earnings – but the bubbly market will complete its last upward wave
Karen Zuba
Jul. 14, 2007

The stock market is in a spiky mood. It is ready to make some real fireworks before going deep into a multi-decade bear market. Next week some investors are nervous. The banks are coming out with earnings and that will have strain of the subprime loans.

The bank earning will be lower that the market expects. But the stock market will keep rising fast ignoring the fundamentals. This is called a top formation before a major drop. In August 1987, March 200o, the market showed similar signs.

Overlooking the fundamentals is the ‘must’ sign for the bubble. The bubble surrounds M&A activities, terrible fundamentals and poor sentiment. The bear market can be vicious after the bubble is gone. It will be similar to the dot com bubble and the recent real estate bubble.

The stock market now faces subprime mortgage related losses in banks as banks declare their earnings – but the bubbly market will complete its last upward wave
Karen Zuba
The stock market is in a spiky mood. It is ready to make some real fireworks before going deep into a multi-decade bear market.
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The oil looks so bullish but can it go past the last year’s high of 78 to 80 dollars a barrel? What happens if it fails to go past that?
Carolyn Plaza
The supply is strong and the mild Fall normally is not a seasonally strong time. Crude oil has more to go on the upside and then it will most likely retest the support at $66 per barrel.
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India US about to find a common ground on nuclear deal - the National Security Adviser MK Narayanan heads to Washington on Sunday for bridging the gaps
Kirit Chauhan
India is a winner on the nuke deal and America gains a trusted ally in Asia. When PM Manmohan Singh met US President George Bush, both agreed to complete the deal in a few months.
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Pakistan now needs support of India and US to fight the root of terror apparatus in northwestern Pakistan
Sudhir Chadda
Situation in Pakistan is getting worse. The call for jihad against Pakistani Army by the extremists in the northwestern Pakistan is a wake up call for India and United States.
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The sectors in real estate where prices can double in the next ten years while the rest of the market will fall apart
Kara Zeilig
The farmlands currently present tremendous opportunities. These lands enjoy lower property taxes. The debt on these holdings is far less. The grain prices are rising fast with most of it getting used for bio-fuel.
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The rally in gold and oil signal higher inflation but the drop in retail sales manifest start of recession – the bubbly stock market says who cares
Susan Hicks
But in the middle of all these, the stock market finally said – who cares, take the liquidity and run for the upside. It is a typical mood during the maturing process of a bubble.
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Playing the yield curve using Treasury options and futures
Fred Day
The stagflation in the economy has created interesting scenarios for playing Treasury option spreads and other complex option strategies on the presumption that shorter end of the yield curve will cone down and longer end will go up.
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