Vertical Research Advisory
Log inJoin Now
Newsletter

Still Headed Higher… Thanks FASB

MARK TO MARKET ACCOUNTING CHANGES Could the wheels be coming off of the bear market rally already? It’s certainly possible, but I think it’s more likely that either late Monday…or certainly sometime on Tuesday we will begin ...

Posted On March 31, 20093 MIN Read
Share:
vra-default-img

MARK TO MARKET ACCOUNTING CHANGES

Could the wheels be coming off of the bear market rally already? It’s certainly possible, but I think it’s more likely that either late Monday…or certainly sometime on Tuesday we will begin to see the markets head higher again. Here’s why:

MARK TO MARKET ACCOUNTING CHANGES!

The rally will be dependent on the financials ability to continue in their recovery. The BIG positive for the financials is the proposed change in the mark-to-market rules.

Banks are holding their breath that the mark-to-market rule changes proposed by FASB under Congressional mandate will be approved, and it looks like they won't have to wait long. The rule changes would suspend the mark-to-market rule for "assets in distressed markets" and widen the definition of "temporary impairments" of troubled assets. This would allow banks to write-up the value of bad assets and remove the additional capital requirements the TARP/TALF were created to solve. This could eliminate the ne...

Continue reading your article and start your free 14-day trial with VRA.

Start Free Trial

Already have an account? Sign in.

Related Post

May 15, 2024
VRA Letter: April CPI; Lowest Inflation in >3 Years. Direct Evidence; Markets Discounting Falling Inflation & Rates. Pounding the Table on PM’s/Miners

Good Wednesday morning. Heads up: I’m scheduled to be on Fox Business with the always locked-in Charles Payne and his excellent show "Making Money” in the 2 PM EST hour. Hope you can join us! Following yesterdays tame PPI, featuring a sharp downward revision in the March PPI from 0.2% to –0.1% the markets responded with a […]

May 14, 2024
VRA Letter: Tame PPI Sets the Stage for Tomorrows CPI. Interest Rate Sensitives Point to Lower Rates. Must Own; Precious Metals/Miners. Meme Stock Craze, Again. Latest from Uber-Bull Rich Ross.

Good Tuesday morning. As we covered yesterday it’s a big week for the inflation narrative. This morning we learned that the PPI came in a bit hot, even as it matched y/y estimates of 2.2% inflation, the monthly read of PPI (ex food and energy) came in at .5% vs estimates of .3%. Importantly…and this […]

May 13, 2024
VRA Letter: VRA Macro Views Fully Intact. The Week Ahead, As Rate Cuts Near. SOXL; Must Own. VRA System Buy Signals.

Good Monday morning. A quick recap of our macro views; We’ve entered a generationally strong, structural bull market, powered by:  a) US consumers and co’s in their strongest financial position in decades. b) the burgeoning “Innovation Revolution” (led by semis/tech) that will power earnings and GDP growth for years to come (2030+). c) overtly and […]

May 10, 2024
VRA Letter: VRA Quick Hitters

Good Friday morning. VRA Quick hitters. 1) "Don’t Fight the tape, don’t fight the Fed". Until yesterday…when it became clear to us that the Fed will soon start cutting rates (following June cuts from the BOE and ECB)…I had not written those words in at least two years. A truer Wall Street axiom is hard […]

May 09, 2024
VRA Letter: VRA System Trading/Investing Heads Up. Market Update; Rate Cuts Are Nearing; Don’t Fight the Tape, Don’t Fight the Fed. Pm’s/Miners; Next Leg Higher is Underway. Xtract One

Good Thursday morning. Heads up: going forward we will be more active in trading ETF’s (via our preferred leveraged and non-leveraged ETF’s). Using VRA Investing System readings to facilitate each trade, we’ll have a more proactive approach in trading our favorite ETF investment vehicles. In bull markets (this one) we’ll look to to “buy” an ETF when […]