SubscribeLinks and Reading for November 27th
November 27, 2008
A few of the more important reading items and links for November 27th :
- AlphaTrends: One Year Ago Today – "I posted this video in which I said it "could be the beginning of a multi-year decline for the markets"
- The Nerve! – GM Asks U.S. FAA to Bar Public Tracking of Leased Corporate Jet
- Tech Shares May Fall Further – Technology is supposed to be one of the bright spots…..
- China Slashes Lending Rate to Support Slowing Economy – Now we are getting serious
- Rumors of a Microsoft cell phone swirl again – Not gonna happen..
- Paulson is at it again – “Addressing the needs of the securitization sector will help get lending going again, helping consumers and supporting the U.S. economy,” Paulson said.
Strategy Lab: Up 16% helped by “Edge” Strategy
November 26, 2008
My MSN Strategy Lab portfolio in now up by 16.5% since August 1st. There has been a need to work the edges as the market has been throwing curve balls, sliders and end of day fastballs. Here is my latest journal:
It is really difficult to digest the amount of money that has been thrown at the economy. Some are estimating that over $7.5 trillion has already been spent on what appears to be unapproved monies. Have you wondered how the Fed keeps on getting more money to spend almost daily?
See a virtual tour of The TDI Managed Growth Strategy (How we invest “real” money)
What is more concerning is the lack of any real due diligence being conducted by government agencies. It is impossible to imagine that an effective level of research has been done to provide the necessary information to make a good decision. They still continue to implement stimulus and the impact Read more
Banks are Toast(ers)
November 26, 2008
Reader/Listener Mike M. sent this funny, yet all too sad reality. Before this is over the page of coupons will surely grow to a full sized insert. Who is next?
Economic Indicators – Who cares!
November 25, 2008
With all of the horrific numbers coming out it makes sense that our boy, Hank “Give-em-a-Trillion” Paulson wants to do what he can to help out the situation. If you really think about it, the amount spent on the Citigroup (C) bailout was most of the remaining TARP that was pulled off the table the week before. Now it is has been made clear that there was reason for the move, the Sunday night cloak-and-dagger approach has not instilled confidence.
It is very reminiscent of the July 2008 distorted reality that we saw as fresh evidence of problems were starting to come from every direction. But, it still took a few months for the news to absorb into the markets as it was difficult to actually comprehend the magnitude of the problems.
Now I wonder if we are doing the same as the euphoria over a new President and a reckless spending spree by the Treasury and the Fed are becoming all too commonplace. How are we going to pay for the estimated $7.5 trillion? Maybe we shouldn’t care and just throw our money in too? Maybe it would be good to buy General Motors (GM) when they are the verge of collapse as it has become clear that failure is not an option and Hank and Gang (or their replacements) will come to the rescue.
Leading Indicators
But it does appear that the short covering rally that we have seen will abruptly end when the fear of the SEC coming in and altering the short-selling rules and the FED stops providing backstops to every failed business model. How long do we stay long into this mini-bubble? Good question and one that is moving closer daily.
If for nothing else, the unemployment rate is a troublesome indicator. Massive layoffs will create a vacuum, no matter how much credit is out there. Falling home prices, not seeing any signs of abating and economic indicators mixed with earnings warnings, does not get me excited. I am staying neutral for a while for the core portfolio and trading into the powerful swings, long and short. I cannot trust this market. Do you?
Links and Reading for November 24th
November 24, 2008
A few of the more important reading items and links for November 24th :
- Anatomy of the Morgan Stanley Panic – Now they are feeding on each other. These are the type of vultures that eat their young…
- Good Bank, Bad Bank, and Fucked Bank – Well said… I am too stunned to even thinks clearly…
- Automotive Suppliers Take Steps to Conserve Cash – Now they are starting to cut costs???? It would be next to impossible to try to make this stuff up.
- APEC Leaders Say Crisis Can Be Overcome in 18 Months – All in a 2-day summit, they are now stating: "We are convinced that we can overcome this crisis in a period of eighteen months". Idiots. If it was that easy, why are we here in the first place…..
- More customers resume using old-fashioned cash – This is exactly why we have shorted Mastercard – on and off. First short was the best @ $239
- Harsh economic data expected for coming week – Lovely
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