Articles to Read 8/24/09

1. Goldman's Trading Tips Reward Its Biggest Clients

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2. Shipping-Cost Index Drops

Some 1,000 dry bulk ships are expected to be launched this year, and another 1,000 are due in 2010, said Amrita Sen, a London-based analyst at Barclays Capital. In the past five years, the average has been 300 new ships.

In Rotterdam, Europe's largest port by volume handled, the volume of iron ore, also called throughput, was down 76% in the second quarter from a year earlier. Iron-ore throughput at Antwerp, Europe's second-largest port, collapsed 97% in the second quarter from a year earlier.

-Not good news for any dry bulk shipping stocks such as DRYS, SSW, or 1919.HK (China Cosco)

3. Bulls of March Look Set to Trade In Their Horns

Now, the chairman of Boston asset-management firm GMO and his colleagues say the S&P 500 has zoomed right past what they consider fair value of about 880, based on earnings estimates and historical price-to-earnings ratios.

Though he now suggests the market could be due for a pause after its breakneck rally, Mr. Darda says he believes the economic recovery will be more robust than most investors expect, driving the S&P 500 to 1200 or 1300 next year.

Like Mr. Grantham, Mr. Catalano now thinks stocks are slightly overvalued. He thinks the S&P's fair value is closer to 945, based on earnings estimates and traditional P/E ratios, and could retreat to that point, or lower, in a hurry, possibly as soon as autumn.