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WOWS full issue, October 14, 2016
An Alternative Way To View Or Print The Entire Current Issue As A Single Document
10/14/16 4:00 AM
Attention Paid-Up Subscribers: To read or print the entire current issue as a single document, use the "easyprint" feature in the "Nav bar" to the right to open it, or any of WOWS' individual features, as an Adobe PDF file, and then print it. Alternatively, you can click "more" at the bottom of this paragraph and then click the red Adobe icon that appears. Your second click will download the full issue .pdf file of WOWS' latest issue to your computer, a process that -- depending on the file size and your connection speed -- might take more than the blink of an eye. Then, depending on preferences you've set on your device, it will either open automatically or show up in your downloads folder, waiting to be opened. [More]
Precocious Value
Richard Miller's Gullane Capital Partners Turns Patience To Profits
10/14/16 6:00 AM
Richard (Trip) Miller, this issue’s interviewee, is something of a force of nature, in a laid back, Southern gentlemanly sort of way. He’s a young man who raced through college and grad school on hyper-drive in a quest to emulate the iconic super-investors under whose spells he fell when just a kid. /Users/Kate4WOWS/Dropbox (WOWS)/10 14 16/trip lede.txt

Those fortuitous connections plus his years of study and tutelage have turned Trip into a gimlet-eyed value investor of the old school. Calm, imperturbable, thorough, and unfailingly polite, Trip’s research is exhaustive. [More]
Import Restrictions?
They’re A Recipe For A Declining Standard Of Living
10/14/16 8:00 AM
By Paul Kasriel
Both 2016 U.S. presidential candidates of the two major political parties are, to greater and lesser degrees, advocating the imposition of restrictions on U.S. imports if foreign exporters engage in “unfair” trade practices. [More]
Sizing Up The Bubble
Internals Indicating Its Days Are Numbered, Despite Easy Money
10/14/16 7:00 AM
By John P Hussman
Presently, the broad NYSE Composite Index is at a lower level than it set more than 2 years ago, in July 2014. Including dividends, the index has gained hardly 2%. Several indices dominated by large capitalization or speculative growth stocks, particularly the S&P 500, have performed better, but even here, the index is only a few percent above its December 2014 high. [More]
Costly Fine Print
Nasdaq’s 7 Years Of Information “Leakage” From Orders
10/14/16 6:00 AM
By Joe Saluzzi
Back in February 2009, Nasdaq received SEC approval for the Post-Only Order type which was described as:

“A Post-Only Order is an order that does not remove liquidity from the System upon entry if it would lock an order on Nasdaq’s system for trading cash equities (the “System”). If, at the time of entry, a Post-Only Order would lock an order on the System it will be re-priced and displayed by the System to one minimum price increment (i.e., $0.01 or $0.0001) below the current low offer (for bids) or above the current best bid (for 2 offers).”

In their 2009 filing, Nasdaq claimed that “the Post-Only Order is designed to encourage displayed liquidity and to offer Nasdaq users greater discretion and flexibility to post liquidity on Nasdaq.” They also justified this order-type by saying that similar order types already existed on NYSE Arca (ALO Orders) and BATS (post only orders).

What Nasdaq failed to highlight in this original filing was that in addition to displayed orders, post-only orders would also not interact with non-displayed liquidity. [More]
Election? What Election?
Consumer Confidence Much Improved, Market Indicators Bullish
10/14/16 5:00 AM
By James Stack
The Conference Board’s Consumer Confidence Survey is sitting at a post-recession high (top graph below) and the gain in September was better than economists had expected. Consumers have been encouraged by the employment situation; consequently, the “Present Situation” Index (middle graph) remains in a solid uptrend. “Future Expectations” are also starting to improve (bottom graph), stepping up from a downward slide that had been in place for the past year. [More]
Gimme Shelter
Looking At How Housing Costs Are Boosting Inflation Statistics
10/14/16 4:00 AM
By Philippa Dunne and Doug Henwood
In September, 36% of the states in our survey met or exceeded their forecasted sales tax collections, an improvement from August’s 21%, but not much of an improvement toward longer trends (see chart right). The share reporting growth over the year slipped to 65% from August’s 73%, but there were calendar factors in there, and the over-the-year change rose to 1.6% from August’s 0.8%. The margin from forecast improved quite a bit, rising from August’s -2.3% to -0.3%. [More]
Diversity Galore
Long/Short Ideas; Banks Break Out vs. Gold; Evercore A Buy
10/14/16 7:01 AM
By Andrew Addison
This is not your parents’ stock market. Today there is more diversity in the stock market than any time in my 43 years in the investment business. [More]

Volatility Brewing?
Technical Indicators Argue For Staying Nimble
10/14/16 6:01 AM
By Ron Griess
A new chart from the Chart Store. Is volatility brewing?

Click adobe pdf icon above to read the rest of the story.

Revealing Glimpse
China’s Dwindling Reserves & Drop In Treasury Prices
10/14/16 5:01 AM
Thomas R Peterson
Bank of China Reserves: They fell more than expected, by more than $18 billion last month. They are now at their lowest levels since 2011. [More]

Hillary’s Tax Plan
An Updated Analysis By Urban-Brookings Tax Policy Center
10/14/16 8:00 AM
By Richard Auxier, Len Burman, Jim Nunns, and Jeff Rohaly
This paper updates an analysis of Hillary Clinton’s tax proposals, which would raise taxes on high-income taxpayers, increase the child tax credit, modify taxation of multinational corporations, reform capital gains taxes, and increase estate and gift taxes. [More]

Trump’s Tax Plan
An Updated Analysis By Urban-Brookings Tax Policy Center
10/14/16 7:00 AM
By Jim Nunns, Len Burman, Jeff Rohaly, and Joe Rosenberg
This paper analyzes presidential candidate Donald Trump’s revised tax proposal, which would significantly reduce marginal tax rates, increase standard deduction amounts, repeal personal exemptions, cap itemized deductions, and allow businesses to elect to expense new investment and not deduct interest expense. [More]

Acute Observations, week ending October 14, 2016
Perceptive Commentary from October 1-14, 2016
10/14/16 8:00 AM
Albert Edwards
…The Chinese have accelerated the renminbi devaluation, taking it to six-year lows versus the U.S. dollar. This is the key global story to focus on, not the pound... [More]

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