Reader Tom sent in the following parable (sorry, no link), which is most timely given the fact that the automaker bailout is on the front burner and has the markets moving higher in anticipation of some sort of agreement: A Japanese company (Toyota) and an American company (Ford Motors or GM) decided to have a canoe race on the Missouri …
Tuesday Tidbits
The markets tumbled yesterday based on more evidence of a slumping economy along with lower oil prices and weak financials. Safety seems to be foremost on investors’ minds as the Treasury was able to sell $30 billion worth of 4-week T-Bills at 0% for the first time since 2001. Translation: investors are willing to accept no return for having their …
Short-term Bullishness
The markets, supported by President-elect Obama’s plan to invest heavily into infrastructure, marched higher yesterday and continued their impressive short-term rebound. Looking at the big picture, the rally over the past few days has now merely wiped out the losses sustained during the first five trading days of December. In other words, we’re still way down and have a long …
Reader Q & A: Should I Hold Or Should I Fold?
Some readers like to listen to the financial gurus on CNBC and actually follow their advice. Here’s what Mark experienced: I am a real fan of your investment letter and typically abide by it completely. However, I saw Meredith Whitney, the Oppenheimer guru, on CNBC this week forecasting a further “huge” decline in financials. Wednesday, “SKF” started climbing rapidly and …
Sunday Musings: Pyramid Schemes
One sunny afternoon, thirty years ago, when I was working as a young real estate broker in Southern California, I received “the phone call.” It came from a friend of mine, and the instructions were clear: Go to the bank, get a $1,000 in cash, and meet him at a residence in an upscale neighborhood. And yes, bring a friend. …
Bottom Feeding II
MarketWatch featured a story called “Bottom feeding is for catfish.” Let’s listen in: Every investor wants to say that he or she “bought the bottom” but anyone attempting that feat this year was in for a rude awakening. Bottom picking is a dangerous game and while we have all sorts of indicators to help us get close to that goal …