tag:blogger.com,1999:blog-6616959642391988608.post8227721963792487739..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Higher yields on Treasuries is good newsScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger18125tag:blogger.com,1999:blog-6616959642391988608.post-11057563829281208812010-09-13T13:15:19.783-07:002010-09-13T13:15:19.783-07:00Well, so it wasn't Exxon, it was Microsoft. MS...Well, so it wasn't Exxon, it was Microsoft. MSFT is up big today on news they are issuing debt to fund stock buybacks and dividend hikes. <br /><br />Sell what the market wants and buy what it does not. That is precisely what the big boys are doing. And MSFT's success in hiking their share price by doing so will NOT be missed by a single corporate CFO out there. <br /><br />This is very Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-7963153192994395272010-09-13T11:47:24.210-07:002010-09-13T11:47:24.210-07:00yep I agree. Borrow at 8% for a 20-30% return! y...yep I agree. Borrow at 8% for a 20-30% return! you would be dumb NOT to borrow. :)Danielhttps://www.blogger.com/profile/17218368702832658780noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20062707523931266732010-09-12T15:44:19.169-07:002010-09-12T15:44:19.169-07:00Agree with John. When money is cheap and plentiful...Agree with John. When money is cheap and plentiful as it isnow you should borrow it. Stocks are also cheap (scorned) so you should buy them. Borrow and buy.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-3593545965682119152010-09-12T13:15:48.823-07:002010-09-12T13:15:48.823-07:00Several companies are currently very active in iss...Several companies are currently very active in issuing bonds. For instance Home Depot has recently raised money to refund debt coming due in later years. <br /><br />A rumor has been going around that Exxon will soon bring a massive bond offering and use the proceeds to buy in stock (I repeat this is a rank rumor). However to me it makes tremendous sense from a sentiment perspective. Sell what Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-698030591135363752010-09-12T10:05:30.022-07:002010-09-12T10:05:30.022-07:00Another reason for an increase in buybacks today i...Another reason for an increase in buybacks today is that next year the tax on dividend income could be greater than the capital gains tax. Buybacks give investors a chance to receive capital gains instead of dividend income.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-4944476787298092462010-09-12T09:13:32.441-07:002010-09-12T09:13:32.441-07:00Bill,
As general rule, higher taxes are bearish f...Bill,<br /><br />As general rule, higher taxes are bearish for equity prices and vice versa.Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-68807473085825754882010-09-12T08:39:39.854-07:002010-09-12T08:39:39.854-07:00As always, thanks John. I wonder how the markets ...As always, thanks John. I wonder how the markets will react to the possible agreement to extend tax cuts for the middle class (as opposed to those of us who are "rich" and comprise the "non-working families.")Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-66995464655352891652010-09-12T07:22:22.219-07:002010-09-12T07:22:22.219-07:00Bill,
I will assume your stock buyback question i...Bill,<br /><br />I will assume your stock buyback question is addressed to me. <br /><br />Corporate stock buybacks are not new. Many publicly traded companies have such programs in place. In recent years they have been popular because of the double taxation of dividends (companies pay dividends from after tax earnings, and those dividends are again taxed if owned in taxable accounts). The idea Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-48225618576605299052010-09-11T13:47:28.249-07:002010-09-11T13:47:28.249-07:00@Bill:
The libs on Marketplace and elsewhere are ...@Bill:<br /><br />The libs on Marketplace and elsewhere are disappointed with Obama because he has not dealt with unemployment. Many of us want him to directly hire workers along the lines of another WPA or CCC. There are so many young guys out of work and now they have to compete with us boomers who can't afford to retire. <br /><br />Germany dealt with unemployment by cutting hours, not Johnhttps://www.blogger.com/profile/06365403570563730880noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-4081690790537166682010-09-11T10:09:50.636-07:002010-09-11T10:09:50.636-07:00I would be interested in your reaction to the news...I would be interested in your reaction to the news that many companies are buying back their stock instead of using their cash to invest and rehire. Do you see this as a long term trend or temporary?Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-73715790815741801372010-09-11T06:25:21.346-07:002010-09-11T06:25:21.346-07:00Obama will not pivot to the center for two reasons...Obama will not pivot to the center for two reasons: he is not skillful enough politically and he is a "principled" ideologue.Charleshttps://www.blogger.com/profile/00607057013050715435noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-16386802034956838362010-09-10T20:12:02.093-07:002010-09-10T20:12:02.093-07:00Bill,
My guess is that President Obama pivots qui...Bill,<br /><br />My guess is that President Obama pivots quickly to the center after November. We'll see but if he stays where he is he will lose big in 2012. Just my cheap opinion.Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-61379562554354394742010-09-10T18:51:28.237-07:002010-09-10T18:51:28.237-07:00I hope you are right John. I'm afraid, howeve...I hope you are right John. I'm afraid, however, that Obama is more of a true believer in socialism than Clinton. He may well prefer to lose in 2012 than pivot to the right and support fiscal restraint and pro-business policies.Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-48021464058570991982010-09-10T18:41:32.439-07:002010-09-10T18:41:32.439-07:00my guess is that T-bills go don from here. What d...my guess is that T-bills go don from here. What does Japan sell debt for?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-55077876541754372752010-09-10T18:02:53.414-07:002010-09-10T18:02:53.414-07:00Bill,
The similarities between now and 1991 are t...Bill,<br /><br />The similarities between now and 1991 are to me, striking. I know every cycle is different and many will scorn the analogy but I sense the same kind of pessimism and defeatism I remember so well from that year...and it began the decade of the ninties, the most lucrative decade of my life. I'm not saying there's another dotcom bubble coming but it will be something. BetterJohnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-27694735953956830122010-09-10T16:15:47.289-07:002010-09-10T16:15:47.289-07:00I listened to NPR's marketplace for the first ...I listened to NPR's marketplace for the first time in a year this afternoon on the way home from work and was struck by the negativity on the economy. The guests (from liberal media) were all about doom and gloom. I guess that's what we are to expect from Obama and the Democrats for the next two years. Let's hope for "change" in November and then again in 2012.Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-21920053012941014752010-09-10T14:06:12.313-07:002010-09-10T14:06:12.313-07:00Intrans,
Scott mentioned earlier that he has frie...Intrans,<br /><br />Scott mentioned earlier that he has friends in town from his wife's native Argentina. He is doubtless engaged with that. <br /><br />Don Luskin, a contemporary of Scott's, addresses the President's speech in a column just published. Mr. Luskin's opinions are respected by Scott, so you might want to check out his point of view. <br /><br />You can find the link Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-49300782276607988112010-09-10T11:30:09.330-07:002010-09-10T11:30:09.330-07:00Greetings Scott,
I am curious if you saw President...Greetings Scott,<br />I am curious if you saw President Obama's news conference this a.m. and if you did what is your opinion on his comments about his efforts to stimulate the economy?<br /><br />Thanks for any thoughts.In Transitionhttps://www.blogger.com/profile/14904228607121436586noreply@blogger.com