Weekly Roundup: Keepin’ up with the Dow Joneses’

What a week it was.  The S&P finally made it back to 1500, the Dow continued it's Journey to Infinity, and Rupert Murdoch decided to shake up the media world - again. But you already know that.  Let's look at some lower beta information from around the world. 

 

Finance:

• "Data" as assets:  Paul Kedrosky discussing this week's deals in the Media arena and what is really behind them – data.    I could not agree with him more.  As Knowledge Capital approaches the point of a tangible asset – those companies who have it, analyze it, and sell it will be much more valuable. 
• Trying to get a fix on the Vix? – Bill Luby looks at the predictive value when the VIX and S&P's are correlated - as they were this week.  He says it does not look too good for Mr. Market – based on history Apparently people are buying insurance against this bull run. 
• IPO's on the Comeback – Health care and (ahem) Financials leading the way.  It will be interesting to see how some of these trade after going public – if they aren't pulled first. 
• U.S Consumers Haven't Slowed Down Just Yet – The runaway train known as the U.S. Consumer as I mentioned this week still is on full steam ahead.  This article on CNN says that back to school season and higher energy growth may test them.  Also – wage and job growth will be a key determinant – we all know where that's been heading. 
• Machines in the Market – CASTrader looks at different views on technology and the markets.  I touched upon this earlier this week and he features many other viewpoints on a variety of subjects. 
• A Look at this Week's Payroll Numbers – Barry Ritholtz looks at Friday's payroll numbers – with a heavy dose of skepticism. 
• Sears Sitting on a Pile of Cash – Can you say Home Depot?
• Liquidity on the Rise – The Capital Spectator looks at this important factor.  Liquidity is the driver of the markets – and it's growing.  So much for the bear case. 

 

Current Events

• French Pick Sarkozy – This is an important election for Europe and the world.  The rising Islamic Fundamentalism in the region is a threat to stability.  I believe Sarkozy is a good choice for this time in Europe. 
• Muslim Candidate for Turkey Withdraws – Big news.  There has been a lot of controversy surrounding this election in Turkey as it quite important for global politics, finance, and stability.  With a large population of Muslims, it will be interesting to see what happens from here.
• Giuliani Praises Bush – I understand that he wants financial support and is afraid of "going against the family", but Rudy needs to separate himself from this Administration. His success rides upon the Democratic votes he picks up NOT the ultra right wing Republicans. 
• More Student Loan Probes – New Jersey is getting on board looking into this much too under-reported story.  I don't agree with many things that Spitzer has done but this is really a problem as debt has enabled college tuition to inflate like crazy.  With the youth facing many other social costs in the next few years due to retiring baby-boomers – education is something that they need and apparently won't be able to afford. 

 

Science & Technology

• Mathematicians Invent Invisible Tunnel – Things are getting too nuts for me.  Soon we will all be able to be Harry Potter or James Bond.
• Humans and Bacteria – Having little human-like bacteria inside of you may have great implications to science and medicine. 
• Atomic Data Storage – It may be possible to store a bit of data on an atom and retrieve it.  Hopefully soon I won't forget to pick up the milk my atoms already got it covered.

Comments

[Bill]

You're going to laugh at this, but I was just saying to myself, "You know, I really need to find a way to squeeze Zero Beta on to my blogroll..." and was just about to do so when I discovered that you had linked to VIX and More in a recent post.

All of this raises a couple of comments.

First, congratulations to getting this blog off to such an impressive start. I have only been blogging for about four months, but you seem to be hitting all the high notes faster than any other new blog I have seen -- and I read a lot of them.

Second, thanks for the mention. I'm not sure that the move to large caps is a bad thing, but the data have me more than a little cautious.

Third, for a little while I almost decided not to add Zero Beta to the blogroll right now, because I have this strong aversion to all those out there who offer tit-for-tat deals and didn't want the timing of your addition to look like one. Frankly, you and I are probably the only people who notice this stuff and I hardly ever care about what others think, so it seemed ridiculous for me to delay the inevitable. Still, I am mentioning this here because I thought you might get some sort of kick out of knowing that in a twisted sort of way, your link to VIX and More almost delayed your addition to my blogroll.

Please don't revoke my low beta credentials yet...

Cheers and keep up the good work,

-Bill

[Zero Beta]

Bill,

Thanks for the kind words - I appreciate it. I have been surprised at the response I have gotten thus far as I have real no credibility nor do I know anyone in the blog community that would have hyped me. I have tried to get my name in the right places as far as syndication goes to try to get my ideas out. It is hard to get a constant stream of material out without sacrificing quality as I'm sure you know.

I also appreciate you adding me to your blogroll. It would be silly to say I could care less if 1 person or 1 million people read my blog as everyone enjoys to know their viewpoints are appreciated.

I try not to link to people just because they linked to me but if it is a blog I respect and a post that I would have read and linked to anyways I have no problem putting them in instead of someone who hasn't. In reality for a weekly roundup I could make a list 10x the one I did as I read many things during the week that I bookmark to possibly write about. Your blog happens to be both someone who has linked to me and someone who's content is appropriate - which should not be a coincidence if we both run blogs with similar content.

I found your blog a few months ago when I was trying to buy some Vix calls. I wasn't really sure how they traded (still not too sure) but always was interested in the Vix and enjoy trading derivatives. I have read it since.

Best of luck to you. Thanks again for the kind words.

ZB