Stocks, Apple, Recession And Oil: Your Emails
Here are a few recent emails we received from readers of Market Insider. Please write to us. We like to hear your views on the markets and the economy (and our columns), and we will periodically share a few.
I tuned in this morning with some trepidation. But then smart money like Brian Wesbury started gloating that there would be a sharp downturn in stocks but by year's end he expected to make "20 to 40 percent." I remember 1987 and there was a lot of fear especially among the "smart money." But there can be no capitualtion followed by recovery if only the 'dumb money' like me panics. True capitulation will occur only when the Wesburys and Kudlows of the world show fear in their eyes and voices. I'm going to keep my cash until prices go down a lot further.
God help us all,
Braco, You wrote this on Jan. 22. I told Larry Kudlow you said there would be true capitulation when he shows fear in his eyes. Here's his response: "Never. Never."
From Joel G (who identifies himself as being in the real estate business):
"You guys never cease to amaze me. Your reporting is always great however, there is an old saying that goes like this "one gets what one asks for" If the media keeps hammering away at the general public about the big R word it should be no surprise that the American people (clearly 70% of our economy) stops or pulls back spending. The public is not stupid. A recession means no jobs. How about reporting on why now is a great time to buy, especially a house. With lower rates, good inventory and in some cases better prices, what better time to be a buyer. Give this some thought. Every cloud has a silver lining. Find it and report that too."
Thanks Joel. We try to tell all sides of the story.
And from Sandy:
"Apple Gave No "Warning", Just their FIRST (and Only) Q2'08 Estimate
In a time of outright or near outright panic, it would be more responsible to report the facts.
In the case of Apple, they did not "Warn". They stated, for the first time every, their estimations for their second fiscal quarter earnings. Yes this was below analysts estimates. BUT offering guidance about future earnings for the First time is a far cry from ""Warning"", even if it is 15% lower that the analysts estimates (Yet 28% growth Y-O-Y)
Please work harder to get the fact right, especially at this time of panic in the financial markets."
Sandy, you are absolutely correct. I described what Apple did and then used the word "warning" too freely in a second reference. It was not an official warning from Apple. It was guidance. It just happened to be less than analysts' expected.
From Flats Jack:
"What exactly is the relationship between the price of a barrel of oil and the price of a gallon of gasoline?"
Jack: CNBC's energy expert John Kilduff, senior vice president of MF Global, says there is a rule of thumb. For every dollar, a barrel of crude goes up or down, gasoline should go up or down 2.4 cents but what is really driving it now is supply and demand.
And I thought you might want to see something CNBC energy correspondent Sharon Epperson wrote about gasoline prices. It shows that in addition to the price of oil, gasoline prices are influenced by supply, refining capacity and local markets.
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