Felix Salmon

It’s still a good idea to sell stocks

If markets can go up a lot, they can go down a lot. And when an asset class gets more volatile, it gets riskier. Your risk appetite hasn’t changed over the past couple of months, so your appetite for stocks should really have gone down.

Don’t lend money to friends, EU edition

If you borrow a lot of money from a friend, or lend a lot of money to a friend, then ultimately your friendship is likely to suffer. The same dynamic is now at work in the EU.

The Moody’s scandal takes its toll

Can the SEC just release, daily, the names of all the companies to whom it has sent Wells notices? Moody’s stock has plunged today after it disclosed late on Friday that it received a Wells Notice on March 18. Mish says that the receipt of the notice “is a significant event that Moody’s failed to report to shareholders”, but Reuters is talking about “relatively short six-week lag in disclosing that it got a Wells Notice”.

Payday lenders go to Washington

Ylan Mui reports on the “Hill Blitz” orchestrated last week by payday lenders, aggrieved that they might at last face federal regulation:

Counterparties

The best price-to-rent ratios yet — Dept of Numbers

Things Lady Gaga Wants — Twitpic

Adventures in anonymous sourcing: do you believe “art experts who have heard details of the transaction”, or do you believe “most of the players with a keen need to know the prices”? — Art Market Monitor

The EU bailout: Too much, too late

Is the massive EU bailout a case of “too much, too late”? At $1 trillion, give or take (depending on the highly-uncertain value of the euro), it’s certainly enormous: Mohamed El-Erian calls it “a completely new level and dimension” in terms of European policy response. But the late-night negotiations of European finance ministers might yet fail to pass muster with national governments. After all, as Kevin Drum notes, the $700 billion TARP bill was initially voted down by the House of Representatives, and this deal has to be ratified by not one but many different legislatures.

Why volatility means you should sell stocks

huffpofront.jpgMany thanks to the guys at HuffPo, who splashed my video from Friday all over their front page this weekend: the resulting post has now received well over 2,500 comments, and there’s even now a “Felix Salmon Investment Advice” tag over at HuffPo, which is scary.

European bond chart of the day

Thanks to Johannes Bruder of Hamburg University for sending me this intriguing chart:

Counterparties

Is the NYT backtracking from its story about “a huge, anomalous, unexplained surge in selling, it looks like in Chicago”? — NYT