warmsnow's  Instablog

What's up with you Mr Greece?

1/ Elect politicians that lie to you consistently and bribe you with your own money
2/ Enjoy low interest rates as part of the Euro Zone
3/ See it blow up in you face
4/ Go on strike

Nice

Come on Europe sort it out!

The problem with Europe is the closer they get to solving the Greek crisis the more they manage to make Europe look like Greece - fat deficits and low to no growth


Cynics argue that the optimal solution would be to cut the Greeks off and spend the bailout money supporting European banks. This does address the core issue - as in why the market is ignoring the bailout. Basically the market does not believe the Greeks will stick to their fiscal straightjacked, and that the Germans will bailout the less than coherent Greeks

Flash crash

Computer driven trading and passive ETFs (aka inhuman money) have been taking share for a long time. Two weeks ago was the first time this ran into a new theme. The incredible shallowness of the most liquid equity market in the world. My traders were saying once we broke resistance, stacks of volume went through but then there was...nothing. Markets are fragile, and this is creating craziness, but you know what, its our job to buy when everyone else is in a panic

So where does this leave us?

Buying growth stocks. We are getting a diamond opportunity to buy good stocks. Europe is a mess, but basically if they can get compound growth of 1% a year over the next 5yrs, which I think is reasonable even if they do have a double dip, then all this noise is just that, noise. Once you have growth deficits shrink and debt to gdp shinks

Buy RVBD, CRM, FFIV




Disclosure: long rvbd, long ffiv