Don Luskin

Don Luskin is Chief Investment Officer for Trend Macrolytics, an economics research and consulting service providing exclusive market-focused, real-time analysis to the institutional investment community. You can visit the weblog of his forthcoming book ‘The Conspiracy to Keep You Poor and Stupid’ at www.poorandstupid.com. He is also a contributing writer to SmartMoney.com.

Stocks Look Cheap Historically, But They May Get Cheaper

With stocks at new highs, are prices too high for the value-minded investor to pay? I say no -- although if you are a value-minded trader, the answer may be yes. The way I look at stock valuations is by comparing consensus forward earnings to current long-term...

Free Speech for Me, But Not For Thee

The financial media is in an uproar over proposed new New York Stock Exchange and National Association of Securities Dealers rules that would require stock analysts to stop talking to reporters who didn't include mandated disclosures when the analyst is quoted in...

Quarter One 2000 Upside Down?

When an investment celebrity like Pimco's Bill Gross calls for Dow 5,000, we can't help but see it as a sign of extreme investor pessimism suggesting that we must be getting near a bottom. It reminds me of the kind of thing we heard at the top in 2000 -- in reverse....

Is Deflation Dead?

Ever since Alan Greenspan surprised the markets by lowering interest rates 50 basis points a week ago Wednesday, the financial media have been frantic with worry about deflation. Well, you heard it here first -- exactly a year and a day ago in this column, on November...

Ordeal by Slander

Wall Street Journal reporter John Gasparino has been on a rampage this week to be the first with every new bit of gossip leaked from NY attorney general Eliot Spitzer's office trying to connect Salomon Smith Barney telecom analyst Jack Grubman's upgrade of AT&T...

Eliot Spitzer’s Attack on the Securities Industry

Whatever you may think of Microsoft, the decision last Friday by federal judge Colleen Kollar-Kottely to approve the company's settlement with the Department of Justice was a much needed rebuke to the scorched-earth prosecutorial mindset of today's state attorneys...

Deformed Reform of Wall Street

The proposed restructuring of stock research at big Wall Street investment banks -- if "proposed" is the proper word when NY attorney general Eliot Spitzer is doing the proposing holding a rubber hose in his hand -- is an even worse-than-usual regulatory solution to a...

The Meaning of Microsoft’s Victory

On May 16, 1998, Bill Gates walked away from negotiations with the US Department of Justice's Antitrust Division and the attorneys general of 20 states to prevent the threatened filing of a sweeping antitrust suit against Microsoft. Gates had offered many concessions...

If You Want Growth You Need Technology

Stocks are first and foremost growth instruments -- a bet on the potential upside. But the best thing I can say for the stock market right now is that it's deeply undervalued. That has been reason enough for me to tell clients over the past several months to...

The Stockholm Syndrome at the Wall Street Journal?

The markets, big business and Wall Street have been held hostage by politicians and regulators for so long that the hostages are starting to identify with their kidnappers. How else can you explain the October 30th Wall Street Journal front pager, breathlessly...

The Stockholm Syndrome at the Wall Street Journal?

The markets, big business and Wall Street have been held hostage by politicians and regulators for so long that the hostages are starting to identify with their kidnappers. How else can you explain the October 30th Wall Street Journal front pager, breathlessly...

The Investing Enigma

Investing is the most supremely arrogant thing that you can do. In effect, whenever you buy or sell an individual stock -- or even if you trade an index fund with the intention of timing the market -- you're placing your judgment ahead of the judgment of the entire...

Iowa Electronic Markets: Vote Early and Often

In the good old bad old days of corrupt Chicago politics, the voters were urged by city bosses to "vote early and often." Now that's exactly what you can do -- and you might even make some money at the same time. If nothing else, you'll be participating in an...

Investing: High Price Ratios and Cheap Stocks?

At the top of the late great bull market in 2000 investors kept coming up with reasons why stocks weren't really overpriced. I came up with a few juicy theories myself that will live forever in the Rationalizations Hall of Fame. But now, in the bowels of the longest...

Killing Capitalism in Order to Save It

Earlier this year big institutional investors were blithely telling themselves that Enron was just an exception. After all, it was a case of outright fraud. How often does that happen? And sure, every company cooks the books a little. But we expect it of them and make...

Practice What You Print: NY Times on Stock Options

There's a game of "can you top this?" going on, with the Senate, the House, and the White House all trying to one-up each other to see who can talk the toughest tough-talk about corporate crooks. The media sits on the sidelines, egging on the politicians, lavishing...

Stock Market: Cheap and Unstable

As of yesterday's close, the S&P 500 has lost 46.2% on a total return basis (including receipt of dividends) since the top in 2000. That exceeds the loss of 45.1% in the 1973-74 bear market -- but it's still shy of the 49.9% lost in the 1937-38 bear market. If the...

Intel: Doomed by Moore’s Law

A seasoned Silicon Valley businessman -- an older man of the pre-dotcom generation who's seen his fair share of booms and busts -- once told me that he had discovered the fatal weakness of the technology industry. It is that semiconductors are the most...

How Government Bureaucrats Helped Sink WorldCom

WorldCom has rallied as much as 53% in the two weeks since it was ignominiously ejected from the S&P 500 Index on May 14. Low-priced securities of distressed companies are often subject to such large moves in percentage terms. But WorldCom's rally following its...

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