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westcoastinvests

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  • Bernanke: We will not hesitate to use additional QE if deemed necessary. The markets like that, the DJIA immediately popping 45 points. Gold recovers its losses, back to nearly unchanged.  [View news story]
    Number 1 requirement to be elected President in the television era is to have a good head of hair, he will never make it.
    Apr 25 03:34 PM | 3 Likes Like |Link to Comment
  • Bernanke: We will not hesitate to use additional QE if deemed necessary. The markets like that, the DJIA immediately popping 45 points. Gold recovers its losses, back to nearly unchanged.  [View news story]
    I am not sure how markets are ever expected to stand on their own again, if even when easing is not needed, Bernanke has to literarlly say that easing stands at the ready?
    Apr 25 02:29 PM | 4 Likes Like |Link to Comment
  • Does the Fed exacerbate income inequality? "The relentless expansion of credit by the Fed creates artificial disparities based on political privilege and economic power," Mark Spitznagel writes. "This coercive redistribution has been a far more egregious source of disparity than the president's presumption of tax unfairness... or deregulation." Even Paul Krugman isn't buying it.  [View news story]
    I have been saying this about the Fed for the past two years.
    Apr 21 10:36 AM | 1 Like Like |Link to Comment
  • "We caution against mistakenly categorizing speculation as a form of manipulation," says the CME, responding to the President's proposals this morning. "To use margin requirements to control cash prices is misplaced ... (this) would make the markets less efficient, less tied to fundamentals ... push hedgers out of the market ... (and) make oil more expensive for all consumers."  [View news story]
    The stock market was set up to be something different then it is today as well. There is very little difference between speculating in commodities or stocks as the market exists today. The difference being that anything which brings higher stock prices is considered a good thing by the Central Banks and anything that draws money away from stocks is considered a bad thing. In my opinon until CEO pay comes down dramatically compared to the average worker, equity investments will continue to be an inefficient use of capital.
    Apr 18 02:17 PM | 1 Like Like |Link to Comment
  • "We caution against mistakenly categorizing speculation as a form of manipulation," says the CME, responding to the President's proposals this morning. "To use margin requirements to control cash prices is misplaced ... (this) would make the markets less efficient, less tied to fundamentals ... push hedgers out of the market ... (and) make oil more expensive for all consumers."  [View news story]
    It's the same thing with stock prices. Those buying stocks in "growth" companies, that do not pay a dividend, are not "using" the stocks they buy they are speculating that more money will be printed and the nominal value of these stocks will appreciate. Somehow we have been convinced that higher stock prices should be the number one goal for every American, and while speculation is villainized in every other asset class speculation in stocks is essentially how the Fed thinks we will solve our problems.
    Apr 17 07:50 PM | 3 Likes Like |Link to Comment
  • "We caution against mistakenly categorizing speculation as a form of manipulation," says the CME, responding to the President's proposals this morning. "To use margin requirements to control cash prices is misplaced ... (this) would make the markets less efficient, less tied to fundamentals ... push hedgers out of the market ... (and) make oil more expensive for all consumers."  [View news story]
    Once again the only asset class in which speculation is considered a good thing is in equities.
    Apr 17 03:00 PM | 5 Likes Like |Link to Comment
  • Yesterday's stock market rise didn't create much optimism that the recent pullback is over. Trading volume during the one-day uptick came in below the 2012 average and was 19% lower than Tuesday’s thrashing. Net new 52-week highs peaked at 280 companies on Feb. 3, but yesterday only 33 companies hit new highs and 27 hit new lows, for a net of only six.  [View news story]
    Hardly any stronger
    Apr 12 06:02 PM | Likes Like |Link to Comment
  • Barclays thinks the recent pullback in chip stocks represents puts the risk/reward in the sector's favor heading into earnings season, and believes inventory replenishment will help drive shares higher into 2H. The firm likes BRCM, QCOM, SWKS, and AVGO on account of their Apple/Samsung exposure (I, II), and is also a fan of telecom chipmakers ALTR and CAVM. (Needham)  [View news story]
    Semi index down a whopping 3% from recent highs, funny what is counted as pullback these days.
    Apr 12 02:10 PM | Likes Like |Link to Comment
  • Intel (INTC) has introduced its Centerton CPU, the first chip for its Atom processor line meant specifically for servers. With a max draw of 6W, the Centerton consumes far less power than Intel's mainstay Xeon server chips, making it well-suited for "web-scale" deployments in which high density and low power are paramount. Intel will face competition in this space from ARM-based (ARMH) CPUs, and from AMD, which just bought low-power server specialist SeaMicro. [View news story]
    Has INTC become the world's most stable stock?
    Apr 12 01:35 PM | Likes Like |Link to Comment
  • A rumor China's Q1 GDP is going to print 9% tonight is being give some credit for today's rally in risk assets. Putting aside suspicions about Chinese data, we forget - is it bullish or bearish for the number to come in fast? Wouldn't strong Q1 GDP lessen the need for monetary ease - rumors of which are also getting credit for today's rally.  [View news story]
    That effectively sums up the current environment. Stocks are perceived as almost risk free because everyone believes that Central Banks will do anything and everything to make sure equity prices do not fall.
    Apr 12 01:05 PM | 3 Likes Like |Link to Comment
  • Investors who might want to have a flutter on the 2012 elections are set to be disappointed, as the CFTC is expected to announce today that it's going to prohibit betting on the polls via "political event contracts," the NY Times reports. The agency is likely to say that such trading amounts to gambling and could influence the election.
     [View news story]
    Yet you can bet all you want to on equity prices, once again the only kind of speculation viewed as acceptable is the speculation that stocks will increase in price.
    Apr 2 10:31 AM | 1 Like Like |Link to Comment
  • Optimism Is Still In Short Supply [View article]
    Yes I am really not trying to be an end of the world doom and gloomer, but I strongly believe that after two major stock market declines in less then 10 years that people are simply going to be less inclined to pay as much for stocks as they have in recent history. The biggest bulls always point to how PE ratios are below average compared to levels of recent history, but it seems more logical that they should stay low for quite a few years rather then snap back to the levels they reached before people saw that equities could decline as much as they have.
    Mar 30 05:47 PM | 1 Like Like |Link to Comment
  • Optimism Is Still In Short Supply [View article]
    The rally in equity prices is being driven by Central Banks trying to flood the world with liquidity, I am sorry but I really don't see how you can argue any differently when stocks rally on good news and then rally on bad news because it means more easy money.

    People whose finances are strained, which is the majority are not optimistic. The few that own most of the world's equities are of course optimistic about the future prices of equities and would like everyone else to buy in so that they will have help in driving prices up further. It truly doesn't seem that complicated but CPB keeps wanting things to fit into the way he imagines the world.
    Mar 30 03:57 PM | 2 Likes Like |Link to Comment
  • "It is the perceived shortage ... not the reality on the ground," keeping oil prices high, says Ali Naimi, the Saudi oil minister. His country's claim of production capacity far beyond current levels "is not empty rhetoric ... There is no rational reason why oil prices are continuing to remain at these high levels." Oil falls further, -2.2% at $104.95.  [View news story]
    You could say the same thing about other assets, It's called ZIRP.
    Mar 28 12:33 PM | 1 Like Like |Link to Comment
  • Intel: The Most Undervalued Chip On The Market [View article]
    I wasn't trying to say that INTC's PE doesn't look ok, just saying that your comment about how other stocks would be at 52 week high doesn't make any sense when INTC is actually at its 7 year high. I will say INTC has bought back quite a lot of stock to help lower that multiple.
    Mar 27 01:15 PM | 1 Like Like |Link to Comment
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