Donald Luskin watch:

Today's story:

Ding-Dong, the Bear Is Dead

By Donald Luskin

THE LOWS OF last Oct. 10 have proven, so far, to be The Bottom. Through yesterday's close, the Standard & Poor's 500 has gained 29.9% gain over the 245 days since Oct. 10's lows. Even from the somewhat higher lows of March 12, the S&P has rallied 26.6% over 92 days.

But is the rally sustainable? Yes. Was Oct. 10 the bottom? Yes.

I have consistently highlighted in this column the positive macroeconomic developments that have made this rally possible, and they will keep it well fueled for some time to come: the decisive resolution of the war in Iraq, the end of monetary deflation risk, investors' increasing risk tolerance, a robust earnings recovery, the market's deep undervaluation and a bet-on-a-miracle tax cut.

[big snip]

A year from now, I think investors will look back at today's markets and say, "What was I thinking? How did I miss that?" Today's stock prices are going to been seen as very cheap, indeed. And today's bond yields are going to seem comically low.

Donald Luskin is chief investment officer of Trend Macrolytics, an economics consulting firm serving institutional investors. You may contact him at don@trendmacro.com

From a little under two years ago:

MetaMarkets to Liquidate Funds

The end is in sight for the funds at MetaMarkets.com, a mutual-fund company that attempted to bring greater visibility to portfolios by announcing holdings in real time via the Internet. The San Francisco-based company announced Thursday that it plans to liquidate its funds, which have been struggling amid the tech downturn.

Specifically, the company will liquidate its $9.9 million OpenFund and its $1.4 million IPO & New Era Fund, according to MetaMarkets' Web site. "Accordingly, over time the Fund's investment portfolio will be liquidated and invested in money market instruments or other liquid assets until the Fund's assets are distributed to investors," the site says in reference to the funds.

The OpenFund, launched in August 1999, is down 26 percent this year after losing 42 percent in 2000, according to fund tracker Morningstar. The IPO & New Era fund, started in 2000, is off 57 percent this year, according to the company's Web site.

MetaMarkets is now looking to be acquired by a large finance or media corporation, and has brought in investment bank Allen & Co. to find a partner. "Capital is scarce and we have to ally ourselves with powerful partners," says Donald Luskin, chief executive of MetaMarkets and a daily columnist for The Industry Standard's Web site. "This is an environment that is hostile to innovation."

posted by Quiddity at 6/21/2003 01:31:00 AM