“The financial crisis has shown that markets are bubble-prone and that laissez-faire regulation doesn't work. The authorities need to get a grip if we are to avoid a mega-bubble. But we may need an even deeper crisis for that to happen.” That is the conclusion of a fascinating round-table discussion just published by Prospect magazine.

I have put together a table of global stock markets’ performance over various measurement periods. The numbers speak for themselves and can best be summarized in a single sentence: "Nowhere to hide."

Investors are running for the hills today, but are they running in the right direction? In this very informative webcast, Marc Faber and Frank Holmes discuss global investment opportunities and threats.

Enjoy the discussion.

Renewed fears of inflation and slower growth caused by record energy costs played havoc with global stock markets last week, resulting in the Dow Jones Industrial Average being on track to record its worst June since the Great Depression. As stocks suffered, gold bullion surged and government bond yields dropped due to safe-haven buying.

There is a terrific amount of information on the internet surrounding forex, but much of it should be treated with skepticism. In order to end the confusion and speculations, this article has come up with a definitive list of forex trading myths.

A ton of doubt ...

Sentiment deteriorated further during the past week as oil prices rebounded, more bad news in the financial sector surfaced, economic woes mounted and inflationary pressures intensified, compounding already-jittery investors’ anxiety.

This post reports on an interview of The Globe and Mail with highly regarded money manager Jeremy Grantham. He discusses the lie of the investment land, providing some stimulating and thought-provoking input. In short, it may not be 1929 all over again, but he sees no quick end to the pain.

A shrinking economy bodes ill for corporate earnings and current indications are that the S&P 500 Index’s earnings could be down by as much as 30% to 40% in year-ago terms by the end of Q2 2008.

Central bankers’ inflation-fighting rhetoric moved to centre stage over the past week. A succession of hawkish comments from US policymakers persuaded pundits that the US rate-cutting cycle was over, resulting in a stronger US dollar, plummeting government bonds, predominantly lower global stock markets (with Asia seeing the most red), and non-agricultural commodities coming off the boil.

I am not in the "end of the world" school, but also have little reason to see a more optimistic scenario for stock markets than "muddle-through" action, typified by sub-optimal returns. Although banks are looking oversold on short-term considerations, they would need a longer convalescence period in order to rebuild their balance sheets.

After stock markets have held up bravely in the face of the credit crises and mounting economic woes, a combination of renewed concerns about the financial sector, a record-breaking spurt in the oil price, and a rotten unemployment number claimed their toll on Friday, triggering a sharp sell-off in most parts of the world.

Bernard Baruch amassed a fortune as a stock market speculator and was recognized as one of Wall Street’s financial leaders in the first half of the previous century. His teachings are as valuable today as decades ago and are shared in this post.

Enjoy the read.

The world is officially in the throes of a food crisis. This article hints at some of the medium-term and long-term implications that may arise out of the global food crisis.

Donald Coxe, Global Portfolio Strategist of BMO Financial Group, has established a great “big picture” track record and built a large following over the years. His eloquently phrased investment recommendations are particularly insightful and are repeated in this post in an attempt to make sense of the troubled times encountered by financial markets.

Enjoy the read.

Just for a bit of fun ...

The length of women’s skirts tells us the way the market is going to go, according to the so-called "hemline theory". Right now the trend is supershort skirts and stiletto heels. Could this be telling us something about the market ahead?

Enjoy the post.