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Inflation Is Bad for Stocks...

One year, there was a terrific inflation in stock prices. I paid a huge amount of capital-gains tax, that year!

Deflation and over-inflation, are both bad.

Proper inflation, will always get you where you are going, though.

This is right out of the GM Owner's Manual.

Why Are Investors Returning to the Dollar?

We have witnessed a "War on Poverty," which has only muliplied the number of people, living in poverty. We have seen a "War on Drugs," which has only increased the profits and violence, associated with drugs. Now, we have a "War on Terror," which is inflaming and angering masses of people, worldwide... If there was only some way, to have a "War on Wars." Every political solution, only multiplies our problems. The more extreme the effort, the greater the consequences. I hate fear, worse than I fear hatred. We must resist those, who use fear as a weapon.

Obviously, I haven't panicked and sold my shrinking portfolio. I'm not quite sure what a treasury is, but it sounds like "the government," to me. So, I too am still grasping for falling knives... Five times, I have bought shares in POT, each time lower than the time before. I broke open my last CD, in order to handle a margin call, and to buy more POT. I like American companies, be it North American, Central American, or South American. As long as it's American, I don't discriminate, at least not by latitude. Solid companies, with great long-term outlooks and wise management teams, have a peculiar appeal to me. Potash fits the description. Earnings will be out, 10/23.

Why It Is Important to Start Reinvesting Now

I learned quite a bit, here. I may take a position, in Intel... Not because you have a position, but because I agree with your argument. As I read your concluding paragraph, I was already thinking INTEL. When I saw your position, it provided a confirmation. Normally, I hesitate to follow anyone's position, and I almost made the mistake of excluding Intel, but that would be just as foolish, as blindly following. So, I wil put Intel on my mental "watch-list." I am currently paying for a gross misjudgement, on POT. I tried to "catch a falling knife," then repeated my mistake, as I tried to average down. Now, I must hold a huge position in POT, as I redirect what's left into other areas. What have I learned, over the past 14 months? Never capitulate, but continue to invest, using the benefits of my mistakes, to direct my future investments.

Crash Opportunities: Part II

Your graph of gold prices, caused me to think back... The last time gold spiked to these levels, was approx. 1980. Gold is not the only safe-haven, so are CD's... In 1982 or so, I bought a CD, which payed 11.5%. Now, I have one paying 3.3%. Obviously, the price of gold and the interest payed on CD's, must have absolutely no relationship, or something is very different, this time around.

A Bad Day, Yes, But Enough with the Hyperbole

This IS "the worst drop in history," if you're under 21 years of age,which may be the case, with some of the media headline writers. AOL has been pouring gasoline and other combustables into the mix, like crazy. Why has AOL started "playing to the cheap seats?"

Wall Street Breakfast: Must-Know News

It's entirely possible, that we will see some more downside, before the regional banks start up. However, their share prices ought to reflect their future potential. To me, I see capitulation in the share prices of these banks... Everyone who was going to sell has had ample opportunity to get out. Now, I see buying by Directors and other people who have a vested interest in the success of these banks, as well as our country, in general. These are not just speculators, like myself.

Wall Street Breakfast: Must-Know News

David, I'm sorry, that was a bad joke... I was referring to Marshall & Isley (MI). I have my money market and a large CD, there. I like the fact that they sold their data-processing unit last year, in order to raise capital. They didn't wait for a crisis to develop, as some others have. Also, they raised their dividend to $0.32 qtrly and insiders have been making large puchases, as recently as last week.

Wall Street Breakfast: Must-Know News

This is the buying opportunity of the decade, for select regional banks... There is an atmosphere that nothing (financial) is any good and nothing could be furthur from the truth... There is at least one regional, that is responsibly, plugging along, just as it always has. It's a "baby," which was "thrown out with the bathwater." I wouldn't doubt it, if this growing bank were to purchase some of the others, at pennies on the dollar and be huge, within 5 years! The name of this bank is... Gee, I seem to have momentarily forgotten, but I'm absolutely certain, that it will come back to me. :-)

Gannon On Investing's July 2008 Blogger Roundtable

With the DJIA trading near it's 50-min highs, I am very BULLISH, going into Tuesday. I look for the market to continue setting new highs, over the next few hours... Long-term, into the late-morning, I expect some profit-taking, as investors lock-in profits. By afternoon, I believe that this BULL will continue to run, setting more new 50-min highs, but a lot can happen in four hours, so I'm keeping an eye on the exit. I used to "buy and hold," allowing certain positions to carry over from one day to the next, but since January of this year, I've found that to be rather unprofitable. My portfolio is up over 30% YTD, even though I've lost about 5%, since July 1. Today, I'll be watching to see if the action in solar and fertilizer stocks, continues. Yesterday, some performed very nicely, but that was yesterday, so I'll be looking into other sectors, as well. I *still* think that solar, fertilizer and materials are part of a bullish mega-trend, which could continue for a very long time, perhaps, even into next week! That will afford many opportunities to trade in and out, as they continue to climb, albeit unevenly. It's almost 6 hours until the markets reopen, so I intend to take a well-deserved vacation, then get up early to read the news. The future is very bright, if you can just ignore the flickering.

Preparing for the Fall

I'm still long, albeit I've rotated out of technology (EDS, ESLR & LDK) and I'm buying all the potash (IPI) that a man should ever desire. I'm not an oil speculator, so that leaves potash... Potash!

As far as I can see, this is still a bull market... Yes, the bull keeps hoppping around, but that's what bulls do best (well, second-best). I'm up 33%, so far this year! In twenty-three years of trading, I've NEVER even come close to this level... EDS (takeover), solar (bandwagon) and IPI (IPO). Frankly, that's what scares me! If a high scool grad and colllege dropout, like myself, can turn six figures in five months (OMG, capital gains tax!), there's something very strange going on... I get very suspicious when things either go too well, or too horribly. All that I can say, is that I am thanking God for his blessings and I intend to give Uncle Sam his cut, too... Oh yeah, I've gotten frightened into cash, three times in the last 9 months, but cash is only good for buying stuff and the only stuff I buy is stock... Buy and hold will kill you, right now, but you can still be fully invested (even on margin), as long as you like reading lots of reports and staying online, during market hours... Think of it as you would a job and it's not that gruesome. Stressfull? You bet, but so was working at EDS, on the GM account. Even those without a job, still must work... That's a part of life and I do not resent it, in fact, I love it (even when things aren't going so well, because it feels awesome to head into a choppy sea, with confidence and faith, in God and in myself.)

Though, volatility is the very thing that puts pizza on my table, I sincerely hope that things slow down... This thing could get out of hand and if it screws the country, it won't matter how wealthy you are. No rich man wants to be surrounded by a bunch of unhappy folks, some of whom, believe that you've ripped them off! Create opportunity for others... Hire people to do housework, yardwork, whatever. If you can't share your fortune, then you are very unfortunate, indeed!

Best of trading, gentlemen.

Market Is Partying Like It's 1999

I remember the Summer of Leverage, back in '87, and this doesn't feel like that. So, if we aren't approaching a cliff and there are no mountains ahead of us, it can only mean that we've reached the "Fertile Plain," stagflation. CD's are starting to heating up and the money market looks rather exciting to me, too.

Under The Radar News - Monday

In this post-NWO (New World Order) environment, it pays to be optimistically cautious. Seeking out values, in proven companies that are heading in new directions, will beat out trying to find the Googles in a haystack. Revitalization will be the watch word... Old men, whose eyes are still alive, will lead the pack, so long as they are not trampled by the hoards of young blindmen.

Bear market? Bull market? Such terms are meaningless, when the frequency of their occurance, exeeds that which we can humanly keep up with... As always, the best time to invest is now.

Economists Largely Positive Following Fed Rate Cut

I think that the Fed did, what it had to do... Now, it's up to us not to misapproprite this fresh liquidity. I certainly hope that the mortgage lenders have learned their lessons and that further regulation will not be require, but I believe that it will. I don't trust giving an addict more drugs, unless there is someone to give objective "advice" on how to taper off. I don't wish to see this crazy-train resume it's prior direction, loaded with a fresh head of steam! In the future, those bastards must live with the loans that they've made, for better or for worse! The alternative scenario will destroy US.

Also, let's encourage the banks to narrow the spread between the rates they charge and the rates they pay. This will keep them fiscally fit and serving the best interests of America, as a whole. Bankers are really patriots, they just need a little guidance, that's all.

The Anti Bubble Has Surfaced

I think what he's trying to say is, indices do reflect the relationships between things, like the dollar, gold, oil and such, but they fail to understand the dynamics of life. We change as time goes on, shifting the value that we place on different commodities. Any singuler index will fail to capture the big picture. As we travel less and less, the price of oil means less and less. Yes, gold is sky-rocketing, but how much gold do you and you family, typically consume? The value of homes is not that important... If I move, then I will get/pay, either a higher or lower absolute number of dollars, but so what? My home's valuation had been going up, over the past few years, but all that really changed, was my personal property taxes. No human being can keep up with all of the relationships between different things, but we can adjust our lifestyles, instead of trying to live like it was some point in history, or in the future. Call it zen-economics, if you will... Remember the 55-year old woman in Walmart, who was wearing a miniskirt and dark eye shadow? We appear just as silly as she does, when we fail to adjust ourselves, as time marches on... Look closely, when they smile at you, in your new Corvette... They might just be grinning. They aren't jealous, they're embarrassed for you. We can still spend just as much as before, just not on the same things, as before. Life is dynamic, by definition... Don't fight it, enjoy it! "Rejoice, rejoice, we have no choice, but to CARRY ON." CSN&Y

Selling Over? I'm Just Not Buying It.

My decision to go long, in healthcare and global IT outsourcing, was made prior to the 3/4 point rate cut. I have no idea, whether interest rates will help or hurt my investments, so I am ignoring them. My research is not based on what the Fed says, or does, nor do I participate in the mortgage/financial sectors. I ignore the headlines, but I do read the stories, keeping in mind what my original conviction, was based on... Months of research, on the industries and very specific companies, which are getting their acts together, within those industries. This is not the "end-of-the-world." I read the Bible, to prepare myself for that eventuality... I read lots of things in order to enrich myself, in the mean time... Why would an event, which renders money as meaningless, affect my investments? Preparing for Judgement Day, most certainly affects how I behave and renders me to become an honest and more caring individual, but I don't get buy or sell signals, directly from scripture. The sky is still blue and I'm long, right now, because this is not a global recession!