jsteinman: Can't judge that since I am not an advisor.....if your favorites continue to fall you could think of adding more......but don't misjudge the potential seriousness of this whole mess......think hedge if you remain invested...
Thanks for the reference. Indeed it does raise the issue of revolving counterparties. What a complex world we live in. I have frequently been reassured that the major banks are well hedged but the article gives me serious pause for thought. Our quant models ranks sectors based to relative historical valuations to current fundamentals so suggests that if EU did resolve its issues financials could rebound strongly. But of course that is speculative and I was remiss not pointing out the higher risk associated with that sector upside.
As you can see, the SA editors have done their best to amend the oversight so let's give them credit for responsiveness and diligence.
Please read the whole article. I didn't write the headline. Seeking Alpha Editors changed my headline. Obviously I was VERY cautious after Mondat and Friday stock action.
Why forget the headline? My bold "IFS" immediately followed the part they chose to use. I clearly warned to "be cautious", seek hedges. The chief Hedge I have been suggesting was up 14% today (VXX). If I am so stupid why was the market so shocked.
Th Editorial staff at SA changed my headline. I believe if you read the text of the article you will see that I was not taking Monday's action lightly ...see the sentence the BIG TWO IFS
The latter question will be played out in days to come. That 1120 to 1220 range did hold for two months , so perhaps a one day lapse will return to the range bound area or tomorrow we may see a resumption of the downside. Greece still remains the big question and if good things do not happen I would expect to fall back below the 1120 support.
Nonetheless as I pointed out there are very attractive valuations out there. Stocks in our portfolio include Kelya (up 15%+ today), SPRD (up q12.4 % today) are good examples of those attractive valuations. Kro and Kem are others as are the four above, three of which were up sharply today. The valuations remain attractive.
Indeed we have tough choices to make. I have always favored a lower capital gains tax than the tax on orfinary income. But where is the "wealthy investor" going to invest....10 year treasurues at 1.8% yield? Probably not. Is it really better to cut medicare and medicade? Is it really better to increase taxs on the middle class or let the post office layoff another 120,000 workers?
This is a very complex problem and there is no easy answer. Would you really implement most of Ron Paul's ideas? Some of them are just fine but we need to work together with partisan positions put asside, with no artificial barriers such as we can't raise taxes, we can't cut social security, we can't reduce the military, we can's continue the EPA. Somewhere there must be reasonable politicians (assuming that is not an oxymoron) who are willing to to try and improve our economy with NOTHING off the table. Otherwise we will end up in the same position as Greece or just like Israel and Palestine. No one budges, no one thinks clearly,.............very worrisome indeed.
Investors Find The Silver Lining And Buy Into Optimism [View article]
Thanks for the comment. We wouldn't take Buffet's large investment as bearish because the shares are preferred. Would be more bullish if they were common shares but he doesn't need to invest in BAC or anybody at all if he is bearish and expects the worst.
Could be good to start nibbling at deserving stocks that were thrown out with the "bath water". Nothing is certain but you rarely know the exact day to start.
The Cause Of Monday's Sell-Off [View article]
The Cause Of Monday's Sell-Off [View article]
The Cause Of Monday's Sell-Off [View article]
As you can see, the SA editors have done their best to amend the oversight so let's give them credit for responsiveness and diligence.
The Cause Of Monday's Sell-Off [View article]
The Cause Of Monday's Sell-Off [View article]
The Cause Of Monday's Sell-Off [View article]
thanks
david
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Where's The Next Support? [View article]
Nonetheless as I pointed out there are very attractive valuations out there. Stocks in our portfolio include Kelya (up 15%+ today), SPRD (up q12.4 % today) are good examples of those attractive valuations. Kro and Kem are others as are the four above, three of which were up sharply today. The valuations remain attractive.
Likely Greek Default Worries Markets [View article]
Thanks for your thoughts.
Indeed we have tough choices to make. I have always favored a lower capital gains tax than the tax on orfinary income. But where is the "wealthy investor" going to invest....10 year treasurues at 1.8% yield? Probably not. Is it really better to cut medicare and medicade? Is it really better to increase taxs on the middle class or let the post office layoff another 120,000 workers?
This is a very complex problem and there is no easy answer. Would you really implement most of Ron Paul's ideas? Some of them are just fine but we need to work together with partisan positions put asside, with no artificial barriers such as we can't raise taxes, we can't cut social security, we can't reduce the military, we can's continue the EPA. Somewhere there must be reasonable politicians (assuming that is not an oxymoron) who are willing to to try and improve our economy with NOTHING off the table. Otherwise we will end up in the same position as Greece or just like Israel and Palestine. No one budges, no one thinks clearly,.............very worrisome indeed.
david
Investors Find The Silver Lining And Buy Into Optimism [View article]
Investors Find The Silver Lining And Buy Into Optimism [View article]
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Thanks.
Is It Time to Buy? [View article]
Thanks for comment.
Is It Time to Buy? [View article]