Actually, I think this is a Warren Buffett quote but I could not document it. Buffett believes that when you buy something you should be willing to hold it even if the market were to be closed for the next ten years. He subscribes to the idea that day-to-day fluctuation in prices are based on…
Tag: CNBC
File this one under, “You Have To Be Kidding Me!”
The Dow Jones Industrial Average declined 162.77 points today. Because the financial media feels compelled to explain every jiggle in the market the folks at CNBC proclaimed the “Dow drops more than 150 points after Fed’s Powell dashes rate cut hopes.” They went on to say that on one word uttered by Chairman Powell when talking…
Most Disrespected, Unloved and Disbelieved Secular Bull Market Since the Last One
That was an apt description of the sentiment surrounding the early years of the secular bull market that ran between 1982 and 2000. The bears thought they’d put the last nail in its coffin after the Dow Jones Industrials posted a 170% gain in the five years between 1982 and 1987, only to collapse a…
When There’s No Bad News, Sow Bad News
If the above motto is not emblazoned over the entrance to CNBC world headquarters it should be because that is exactly what they do! Today is a perfect example. There really is not much going on save what should be the wrap up to a fairly routine Fed meeting, a meeting where no significant policy…
Ugly, But True. And, as usual, late to the party
“Wall Street looks to leave behind the half-year bear scare” This is a headline from an article and video a segment from CNBC’s “Trading Nation.” (3/18/19) The video is a three-way discussion with moderator Mike Santoli, Michael Bapis (Fios Advisors at Rockefeller Capital Management) and Craig Johnson (Piper Jaffray). $64 question … Where do we…
Trade Concerns Strike Fear Into Market! … A Counterpoint
Trade concerns draw blame for recent weakness in the market Uncertainty about the shape of any deal takes center stage The media changes tune on the impact of China trade negotiations If a deal is reached, the shape of that deal will not be the most important issue for the market Unfortunately this has…
“The Eerie Calm in Global Markets” (Beware!)
The recent shift in Fed rhetoric … does it really mark a policy shift? Market history update Bad News Sells! Randall Forsyth, Barron’s editorial writer and chief contributor to the “Up and Down Wall Street” column, is a modern day “Mikey.” You all remember Mikey? He was a 3 or 4-year-old toddler featured…
How to embrace awful turns in good markets
Lose your ‘recency bias.’ Tune out the ‘nattering nabobs of negativism,’ i.e. the media. Don’t confuse market melt-downs, due to poor market mechanics, with the end of the world. Lose your ‘recency bias’ especially as it pertains to past market trauma Definition “The tendency to think that what’s been happening lately will keep happening is one…
The “Christmas Eve Massacre” and where we stand now
First and Foremost … By early October, 2018, the S&P 500 had more than quadrupled off its 666, 2009 secular bear market low (up over 300%). This was capped off by a spectacular 24 month run that saw the S&P 500 increase more than 50% to a new all-time-high of 2951.81 (10/3/18). I would say a correction of…
A Look Into The Belly Of The Bear
Irrational Pessimism Before moving on to a more complete discussion of ‘the belly of the bear’, I thought a real-time view of ‘irrational pessimism’ might be in order. I have one and it is a doozy. Now a ‘doozy’, loosely defined, is “something unique.” Unfortunately, or fortunately for those left with money to buy, there…