Bullish Blog

Reuters - U.S. stocks gained on Monday as a report showing stronger-than-expected Midwestern business activity eased worries about the economy and a plan for regulatory overhaul raised hopes for calmer financial markets.

Two common indicators -- mutual funds' cash positions and net inflows -- won't tell you much. Most funds remain fully invested, and studying inflows is like using a rearview mirror to see what's ahead.

In yet another example of the central bank's failed bailout-after-bailout strategy, it's now on the hook for Bear Stearns' losses. We need to clarify the Fed governors' mandate -- or even send them packing.

The collapse of Bear Stearns should not surprise anyone. When things go sour for an investment bank, the damage will be ugly, as we've now seen. I'm adjusting my portfolio to reduce my risks.

AP - While Wall Street faces the biggest overhaul of its regulatory structure since the Great Depression, analysts are already wondering if the plan to be announced by Treasury Secretary Henry Paulson on Monday would help prevent the kind of risky investments that led to the near-collapse of Bear Stearns Cos.

AP - Stocks may already be pricing in a recession, but they haven't priced in a very deep one. If this week's data on the job market and manufacturing are worse than Wall Street is anticipating, investors should not be surprised to see another tumble.

Investor's Business Daily - After selling off hard during the winter, China's stock market and ETFs that track it have notched one of their best weeks in several months.

Reuters - The White House said on Friday it intends to nominate two Democrats to fill empty seats at the Securities and Exchange Commission, which has been operating with three Republican commissioners for several weeks amid worsening market turmoil.

As the market nears the end of an awful quarter, continued economic stress and problems for banks will weigh on investors' minds. J.C. Penney says consumers are cutting their spending. Lehman Bros. gets an upgrade but may have been the victim of a $250 million fraud.