— When has being a seller into a well-anticipated event with negative implications for the market ever made any sense? — We have had 42 days full of hand-wringing and negative media to contemplate the July 27 Fed meeting … a for me the market has priced this in. — After all the higher rates, inflation, recession talk and extremely…
Tag: media
Bubbles and Bear Markets: One size does not fit all!
— The Tech and Innovation bubble has burst — Investors heavily involved in this space are definitely in a bear market (a narrow bear market). — Cathie Wood for the defense — Words of wisdom from Morgan Stanley …Caveat Emptor — Parting thoughts The tech and innovation bubble has burst There is no question about it. A proxy…
UST 10-year rockets — a misguided attempt at beating the Fed to the punch
— A flight to safety … the yield on the 10-year treasury drops 15% in two weeks in a raging bull market. — For some investors (computerized or not) fears of higher interest rates and inflation trump a rip-roaring economy with a tankful of fiscal stimulus and easy monetary policy as far as the eye can…
When in doubt, return to the Covid-19 playbook!
The Covid Playbook It is simple … sell the old economy (cyclical), value and anything considered risky (small cap). buy large cap, dependable growth (tech), i.e. the bulletproof, the innovators. Valuation doesn’t matter you just need to be somewhere with immunity to the economic ravages of the renewed pandemic. We just saw this occur over the…
The Market Floats In a Sea of Mines
“Damn the torpedo’s… Full speed” … ahead! I used this somewhat doctored quote from Union Rear Admiral David Farragut to title my final post of 2019. Back in the day (1864) the torpedoes Farragut was damning happened to be contact mines that were easily able to blow a ship out of the water. There were…
Interest rates are going thru the ceiling!–the next “BIG THING” to worry about
Humankind is a species that feeds on negative news aided by the media that knows how to feed that need The market appears willing to ignore really bad news on the virus front … an obsession on the way out The next big thing may be rising interest rates which will go hand in hand…
The Death of Oil
Energy stocks have taken a beating the last few weeks Concerns about a worldwide resurgence of Covid 19 have raised the specter of declining economic activity and the negative potential impact on oil demand Longer-term two news items last month, one from the governor of California and one from China, probably pushed the sentiment surrounding…
“In a Stock Market Like This, Anything Could Cause The Next Panic”
“It’s a race against time … Barron’s Ben Levisohn proclaims —“no one knows who is winning.” (Barron’s or WSJ subscription needed to read more) May I suggest, based on this headline, I would say fear is winning and if you have read this far my use of the Barron’s headline effectively drew you into this…
A postcard from the bunker
Hunkered Down As I write this post I am hunkered down in the Kort family bunker, deep below the towering McMansions of Leawood, Kansas. Present are my wife, daughter and granddaughter and a fair supply of provisions, including toilet paper. We are some of the lucky ones. My tongue-in-cheek intro does absolutely not mean to…
Coronavirus Panic: Time to chill, breath in and breath out … and consider the facts.
Time to look backward: an S&P 500/Corona virus retrospective Even though the corona virus outbreak in China had been on investor radar screens since the first of 2020 the S&P 500 managed to claw its way to a new all-time high of 3338 January 23. That happened to be the day China cut off egress…