Thoughts from the Frontline

Market Timers or Market Cheaters?

By John Mauldin

September 5, 2003

Market Timers or Market Cheaters?
Trust, But Verify
Jobs, Growth and Spirals
Fool Me Once, Shame on You
Japan and China say: Go Away
Dallas, New Orleans and New York

Given the wide disparity of views about the economy, it is little wonder that the reaction to Greenspan's latest speech has been all over the board. That is compounded by the fact that bond price expectations are totally disconnected from Fed expectations. Are the bond market critics just a bunch of whiners (give me back my risk free trade!) or is there substance to their major beef? Who's really in charge here? Can the Fed trump the market? Predictably, I answer the latter question with both yes and no. It all depends upon your time perspective, but timing is everything. There's a lot to cover, of course, so we begin.

But first, while we are speaking of timing, I have to comment on the latest mutual fund scandal uncovered by Elliot Spitzer based on a tip from some (presumably) knowledgeable source. Basically, a hedge fund (Canary Capital Partners) was allowed to buy and sell mutual funds after the market close. Canary was allowed to do so because it was controlled by a mega-wealthy family (the Sterns of Hartz-Mountain) who gave Bank of America a…

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