The Media Has It Wrong; This Is Not 2008 Again, By Brian Nelson, CFA
As you’ve probably heard pundit after pundit claim last weekend that the recent trading loss at JP Morgan will be the catalyst for the next global financial calamity, we thought it important to put this loss in perspective not only with respect to JP Morgan’s fortress balance sheet but also as it relates to the confidence in the global financial system in general.
Having led a department of analysts through the development of issuer credit ratings in my former role at Morningstar, I also had the pleasure of “living” and leading a department through the doldrums of the Financial Crisis of 2008. And I can speak confidently that the issues in Europe and the errant hedging strategy at JP Morgan are minor troubles compared to the massive blow of confidence that ultimately triggered the demise of Lehman and Bear during the Great Recession. Apples and oranges, one might say, at least as it relates to the US banks and our goal of outperforming the market benchmark. That is not to…
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Inside This Issue
1 The Media Has It Wrong; This Is Not 2008 Again
1 Our Thesis on Apple Remains Firmly Intact (ticker: AAPL)
5 Best Idea Visa Posts Another Terrific Quarter (ticker: V)
6 Ancestry.com Says NBC Will Not Renew Its Television Show; But We Still Like the Shares (ticker: ACOM)
7 Honeywell and GE Reveal Industrial Strength (tickers: HON, GE)
8 Our Best Ideas Portfolio (see article for tickers)
9 Ford Posts Record Pre-tax Earnings in North America But Europe Weighs on Profitability (ticker: F)
10 Best Idea EDAC Tech Issues Fantastic First-Quarter Results; Raising Our Fair Value (ticker: EDAC)
11 Best Idea Buffalo Wild Wings Posts Strong First-Quarter Results (ticker: BWLD)
11 Quick Take: Update on Collective Brands (ticker: PSS)
13 Best Idea Intel Continues to Deliver Solid Results and Return Cash to Shareholders (ticker: INTC)
14 Coca-Cola Reports Strong First-Quarter Results (ticker: KO)
14 Intuitive Surgical Posts Strong First-Quarter Results (ticker: ISRG)
15 Best Idea eBay Releases Fantastic First-Quarter Results; Raises 2012 Guidance (ticker: EBAY)
15 Yum! Brands Posts Solid First-Quarter Results (ticker: YUM)
16 IBM Raises Full-Year Earnings Guidance (ticker: IBM)
17 Ideas for Your Radar
19 Featured Reports: EDAC, BGC, GOOG
22 Our Stock-Selection Methodology