We thought we had it all figured out before this week started.
We were wrong.
The top minds in the investment business offered some novel analysis, broke conventional wisdom, and even opened our eyes to some misperceptions.
This particular week we learned that the Obama recovery is stronger than Reagan's, Reagan's recovery is stronger than Obama's, the real reason why Wall Street loves leverage, and that many respected investors are staying away from the Facebook IPO.
What follows are excerpts from such stories this week. All of the important stuff you might have missed this week, right here.
SOLVED: The Real Connection Between Stocks And Treasuries
"The connection is not between stocks and yields, but between PE ratios and yields, and although the stock market has been gaining, that's apparently not been due to significantly higher PEs. The good news for equity investors is that, at least as Kitano sees it, long-term rates are likely to rise thus pushing up PE ratios."
Why The Obama Recovery Has Been Much More Impressive Than Reagan's
"If you really want an apples-to-apples comparison, it's hard to fathom why Reagan doesn't have to answer for a recession happening so soon on his watch, and why he only gets measured on those two years. What's more, as you can see in the chart above, the 1984-1988 period was pretty average, so we're really just talking about two years of really impressive morning-in-America growth."
Why The Reagan Recovery Was Much More Impressive Than Obama's
"In the first ten quarters of the OR, GDP is up a total of 6 percent. During the first ten quarters of the RR, GDP rose 15 percent. Point for Reagan. In the first ten quarters of the OR, the economy created 790,00 jobs. During the first ten quarters of the RR, the economy created 7.5 million jobs Point for Reagan."
See the rest of the story at Business Insider
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