Yale Bock's  Instablog

Well, last week certainly was a tough one in the market as the major averages fell about 6% for the week. Tomorrow's front page of the Wall St Journal discusses how investors are running away from stocks. The 10 year treasury bond yield's below 2%. One can refinance their home using 15 year loans at below 3.5%. If this is not the scenario Ben Graham talks about when he says all Mr. Market sees is gloom, I don't know what is.

Yes, stocks can get cheaper, it is amazing sometimes how cheap stocks can get, however, the idea they are going to keep getting pounded 6% in a week is mathmatically not going to hold up. Stocks have been down for 5 straight months, and are down at least 25% from August, and many much more than that. Do your own homework and use your own judgement about what you think is a good buy, or not a good buy, and certainly keep in mind anybody who is on a financial program is going to talk their own book. If they say the market is going down more, you better believe they are short.

Here is the Bloomberg article on the outperformance of Treasuries-http://www.bloomberg.com/news/2011-09-25/betting-on-bernanke-returns-28-for-treasuries-as-twist-divides-investors.html

Doom and Gloom Leads the WSJ-http://online.wsj.com/article/SB10001424052970204831304576592822485984958.html?mod=WSJ_hp_LEFTTopStories

Paypal is just so dominant in tranactions-http://techcrunch.com/2011/09/25/paypal-now-processing-315-million-in-payments-per-day/

A hysterical look at the Republican debate by Saturday Night Live-http://www.realclearpolitics.com/video/2011/09/25/snl_mocks_latest_fox_news_republican_debate.html

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments