— Fed week this week and the ritual continues. — Armageddon continues on hold rebuffed by continuing good economic and earnings reports. — A few words about inflation — If you believe the Fed’s rhetoric the 10-year US treasury note near 5% yield is the deal of the decade. I composed this piece on the weekend. Even with…
Tag: warren buffett
Has Warren Buffett Gone Mad?
— How could he be buying Occidental, an oil stock, amid a waterfall decline in the commodity? — Everybody knows the greening of the world spells doom for fossil fuels or does it? — Former oil company bad behavior changes in the fight for self-preservation. — My conclusions: Buffett is not mad. Why would Mr. Buffett buy a dirty, cyclical oil…
“What were you thinking?”
As it pertains to the current market, I’m not certain what is going on in the heads of many investors as they continue to direct a fire hose full of dollars into a very narrow group of tech and internet stocks. For example the current market capitalization (7/13/2020) of Apple (AAPL — $1.663 trillion) plus…
Nothing inspires confidence like an emergency Fed funds rate cut
— During the entire panic on the downside you had to ask ‘are things really that bad out there?’ — One also has to ask how does a cut of 50 basis points on the Fed funds rate positively impact the trajectory the COVID19 epidemic. — Fortunately, the answer may be ‘no’ to bullet number…
‘The only reason to keep the stock market open is to see how foolish people can be.’ anon.
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…
More bad news folks, Mercury’s in retrograde!
And, when Mercury is in retrograde, according to the astrology crowd, it is not a good time to make decisions about finances, love, communicating, contracting or just about any human enterprise. Thank you Angela Fritz (atmospheric scientist and WP Deputy Weather editor) and the Washington Post for educating me on this (People are freaking out…
Session 99–Nasdaq Meltdown: Shades of Y2K
It’s Friday April 4, 2014. I am getting ready to run out the door to a meeting and I hear someone compare the the Nasdaq mini-meltdown of recent days (down 2.6% on Friday) to the beginning of the “tech bubble” bursting in March of 2000. Unfortunately, I was not recording at the time and there…
Session 95–Keep it simple stupid
These four words, often referred to as the “KISS Theory,” should be a mantra for many investors who have neither the skills nor time to manage their own investments. I have a very credible ally in this thought process, Warren Buffett, who is advising his own heirs to “Keep it simple…”, to invest their inheritance…