The bill is a clear articulation of a far larger role for private capital, compared to today’s dangerous market conditions. It will liquidate the current government sponsored enterprise model, while retaining a clear role for federal support in the secondary marketplace. Read More
The Investing Letter
"Larry McDonald has been advising me for over 20 years. The 17 Lehman Risk Indicators have been very accurate at calling market declines over the last couple of years. I highly recommend his research to any institutional investor."
Jim Rappaport, CEO, New Boston Fund
"From the trenches of Wall Street, Larry's natural contrarian views have saved me hundreds of thousands of dollars. I cannot thank you enough for all the work you do for us. I hope you have all the success in the world. You deserve it."
-J Corbett, Wealth Advisor, Morgan Stanley
"The Fiscal Cliff Notes" is the most concise, advanced finance letter I have ever read. It puts global market risks into perspective - every week. My confidence investing my clients' money is tenfold with Larry in my corner."
-C Lakian, Broker, Merrill Lynch
"In 2007 Larry McDonald saved my family's fortune from going down with the subprime crash. I'm not sure if I need to say anything else. I owe you an enormous debt of gratitude."
-M Starrett, Real Estate Developer
"I don't touch the markets without a long phone call with Larry. He might very well be a market genius."
-J Madejski, Founder, Auto-Trader
The Macro View
There’s a groundswell under equities right now. Risk factors, like how much banks trust each other, are very low. And market sentiment is very high. Stocks are levitating toward new highs, and the story’s taking on a life of its own. Read More
A further sign of lower systemic risk, five year credit default protection on the four biggest banks in France and Spain has dropped anywhere from 10-20bps over the last week. Socgen has improved by over 100bps the last two months. While economically sensitive names like Caterpillar CAT, AK Steel AKS, Advanced Micro Devices AMD, Yum Brands YUM have moved wider by 35-200 bps in the last 45 days. Read More