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  • Wall Street Breakfast: Here Comes The GDP Revision [View article]
    The global news is obscuring the global economic recovery. People fret about terrorists, immigrants, border controls, planes crashing, and general saber rattling of one sort or another, and do not see that so many economic areas have reached a bottom from which they are slowly but surely rising.

    Europe is improving, but worries there hide this. Emerging and Asian markets have bottomed and are climbing back, but the surge of money going back into this oversold area has not yet started in any significant way. The US has an election next year, which invariably goes hand in hand with a rise in the stock markets, but the sad ranting and pronouncements of a cadre of poor quality presidential candidates doesn't engender thoughts of rising markets.

    In addition, interest rate rises, which are inevitable, will knock bond and treasury markets backwards a lot, with the consequent rush of money into equity markets, which will raise prices.

    Those who do not see or do not agree may continue to wallow in doom and gloom, which may in some peculiar way make them happy; but for me, I'm going to be (selectively) buying, and expecting an overall 10% rise in stock prices generally by next summer.
    Nov 24, 2015. 07:30 AM | 9 Likes Like |Link to Comment
  • Wall Street Breakfast: U.S. To Hike, Eurozone To Ease? [View article]
    The coming drop in European interest rates, which will be even more negative than they are now - yes, people will buy government bonds and put money on deposit where the rate is negative - will boost European business. It's been a good place to invest recently, and will continue so to be, IMHO.

    Drones are big business now: buy Parrott (EU:PARRO).
    Successful biotechs are sought after: buy Ablynx (EU: ABLX).
    Stem cells from umbilical cord are increasingly being stored for future cures: buy VITA34 International (LS:V3V).

    Disclosure: I'm long on all three of the above.
    Nov 20, 2015. 09:28 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: World Equities Lower As French Police Raid Terrorist Hideout [View article]
    New York Attorney General Eric Schneiderman has included ...

    Fantasy sports is betting, not a skill, so illegal, apparently.

    My bet is that if there were substantial taxes being paid here, then suddenly it would be a skill, and perfectly legal.

    What are the odds on that? lol. :)
    Nov 18, 2015. 08:55 AM | 5 Likes Like |Link to Comment
  • Wall Street Breakfast: World Equities Lower As French Police Raid Terrorist Hideout [View article]
    Federal prosecutors are investigating executives at RBS (NYSE:RBS) ...

    What constitutes a "dodgy" mortgage? When property prices are rising, and the economy doing well, there is pressure on to lend; so criteria are relaxed. When things go pear-shaped, criteria becomes so crazily tough that perfectly good applications are turned down.

    Yes, any regulatory power looking for an excuse to fine for non-compliance will always be able to find breaches such that they can milk the situation. Call me cynical, but it's just another way to:

    a) Get more money into the coffers.
    b) Tell Main Street we are protecting your interests.
    c) Allow not-so-straightforward lending and therefore extra profits for financial companies when times are good, by clawing some back when they ain't so good (on a mutual nudge-nudge, wink-wink basis).
    Nov 18, 2015. 08:42 AM | 5 Likes Like |Link to Comment
  • Wall Street Breakfast: Valeant Confirms Appropriateness Of Accounting [View article]
    Life is carcinogenic. Just breathing oxygen runs the risk of mutating cells so that they attack us as cancer. Direct abuse, such as smoking which involves taking down into the lungs hundreds of nasty chemicals, is an obvious carcinogenic; though even that was not obvious many years ago. So, whilst well-meaning people continue to point out what may cause cancer, on balance, we should all just try to live a healthy and balanced life as we see it, else we may succumb to such paranoid anxiety that we don't enjoy it anyway!
    Oct 26, 2015. 07:40 AM | 16 Likes Like |Link to Comment
  • Wall Street Breakfast: Mario Draghi Takes Center Stage [View article]
    Gold has recaptured its shine in recent months, but that doesn't change the cloudy outlook for the precious metal over the longer-term, warns Goldman Sachs ...

    Ah ha, so they're going short on gold, heh? Pretty good reason to buy right now, IMHO.
    Oct 22, 2015. 07:19 AM | 4 Likes Like |Link to Comment
  • Wall Street Breakfast: Starbucks, Fiat Stung By Tax Deals [View article]
    Western governments interfered in Iraq and Libya, spouting "democracy" and the like, and took down the Governments in power, their leaders died, and absolutely nothing was put in place to maintain a properly governed country afterwards. Result: anarchy. Zealots and villains moved in and the rule of law disappeared.

    Regardless of how we may think about tyrants like Hussein and Gaddafi, we do not have the right to interfere, especially when there is at least a functioning country under their rule. Yes, they did much that would be criminal elsewhere, and were depots; but there was law and order of a sort. The countries were productive. In time, maybe the people in those countries may have changed things for themselves.

    Afghanistan and Syria are not lead by the nicest of people, or people who think like we do. That does not give us the right to try to change things.

    We are responsible for the present lawlessness in these areas, with people fleeing for their lives or using that as an excuse to be economic migrants. Europe is becoming inundated with refugees, creating enormous problems now and for the future.

    Putin's forces may be targeting rebels as well as IS forces, and Assad may not be the kindest ruler in the world, but maybe, just maybe, there will be an end to the madness that has reined in the country for far too long.

    As for Libya: the Wild West was never that bad!

    Shame on Bush, Blair and their allies who caused this mayhem with their naive and vainglorious actions which have resulted in the deaths of so many, and ruined the lives of so many more.
    Oct 21, 2015. 11:31 AM | 9 Likes Like |Link to Comment
  • Wall Street Breakfast: Media Buzz Hits The Street [View article]
    Whilst people are fretting about interest rates rising or not, China's growth rate slipping or not, Putin this, Greece that, emerging markets suffering or not, etc etc ...
    things are happening at grass roots level. Two examples are: China and India are developing massive middle class populations that are consuming such that exports aren't such a signal as they were, and tech advances are bringing manufacturing jobs back from abroad. Things are moving, just so slowly it is hard to see. And historically markets do well in an election year. So ... whilst I'm holding cash, I'm still buying where I think there's value, especially when the low tide takes good ships down too far as well as the ordinary and wrecks, lol.
    Oct 16, 2015. 07:51 AM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Yellen Speech Drives Market Rebound [View article]
    It doesn't matter where they are, the US, Europe, Africa, China etc etc ... The rulers are the same, and look after each other, at the expense of everyone else. (Bush got the bin Ladens safely out of the US after 9/11.) And the idea that the poor are workshy, grasping, less able people is one put around by those same rulers to detract attention from their own greed and lack of ability, or desire, to do anything truly useful or helpful.

    Since quantitative easing (printing money), the extra value of real assets has ended up in the pockets of the existing rich and done nothing to restart the world economy. When this has shown itself to have got back on track, it will be because everyone else excluding the rich and powerful, have worked to make it so, despite the anchor of those same rich and powerful weighing us down.

    It's not the poor and those at the bottom end of society we need to fear and worry about: it is those at the top who hoard the wealth and tell us what we must do; and try to make us believe how considerate of us they are when in truth they don't give a damn, as long as they are okay.
    Sep 25, 2015. 11:38 AM | 4 Likes Like |Link to Comment
  • Wall Street Breakfast: What's Next For Volkswagen? [View article]
    Japan and Europe: two places to invest now as they've been beaten down more than is reasonable, IMHO. Worth a small percentage of a portfolio, I say; and given a two-year-plus investment horizon.
    Sep 24, 2015. 09:33 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: U.S. Stocks Look To Battle Past Asia [View article]
    Too much emphasis being placed on 'couple of months.' I could have said '... or so' or 'few months' or ... I was not being prescriptive in that 'only' the next couple of months mattered. The fact is markets fell generally, and amongst those businesses whose price fell, there will have been, and still are and will be, bargains to be had. And a bargain that falls another 10% is still a bargain when it rises a lot more than 10% going forward, No-one can always buy at the very bottom and sell at the very top. It is comparative, not absolute: and it also depends on which stocks are selected. In short, many good businesses may be bought now, and during July and August, for less than would have been paid for them prior to June 30. And a longer term holding period, which I always have in mind when buying, should give more than enough opportunities to sell at a better profit having bought recently, or in the near future, than having bought at the top earlier this year. Phew ... that's it from me now! lol. :)
    Sep 23, 2015. 05:38 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: U.S. Stocks Look To Battle Past Asia [View article]
    Thank you, gggl.

    The Dow has come down from 18,000 over the period in question, and prices are now down to levels where sale bargains are available: one has to do the research to find out which ones, and then buy accordingly.

    Here is my post referred to from 30 June:

    Greece will default, whatever the name given to it; and they are playing hardball, risking exit from the Eurozone. However, whatever happens, stock market falls due to it will be buying opportunities. The summer, Greece, terrorism, Russia, et al together will make markets jittery and cause drops in the values of stocks; but the longer term trend is still up and bullish, so keep an eye on the stocks you want and pounce when they have dropped in price. For the next couple of months, stocks are on sale!
    Jun 30, 2015. 09:24 AM
    Sep 23, 2015. 12:32 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: U.S. Stocks Look To Battle Past Asia [View article]
    Behavioral psychology can explain why people make markets move as they do, but it can't do anything about changing things, so we're going to continue to get crazy market swings all around the globe.

    Essentially, these swings happen because people move with the crowd. If a wrong view, especially a generalist one, is voiced loudly and often, it is accepted; whilst a solitary analyst who determines a deep down truth through careful examination of the realities, will have his or her findings swamped and swept away, and will be ignored.

    In time this ignored truth will emerge as an unexpected reality, and people will cry over their past wrong actions, and look for scapegoats and excuses, rather than admit they were foolish and followed the crowd.

    So ... things are getting better. Lower Chinese growth rates are better than higher rates, because they are sustainable. Politicians and their financial yes-men lie to make things sound the way that they want perception to be, but that does not alter reality.

    Technology is bringing manufacturing back to the US and European countries, from Asia, China and other what were low labor cost countries. Robots can make stuff better and cheaper here now, and it's happening. So we don't need to be so dependent on emerging and other economies to have a flourishing one ourselves.

    Investors: there are some very undervalued stocks out there that have been unfairly beaten down in price. Ignore the doomsday scenario, evaluate the real standing of the stocks you like, taking your time over it, and buy them when their price is so low it seems the knife can fall no further. Your solitary analysis that is true will show through in time as good profit, whilst the crowd around you will be weeping and laying blame all around to excuse their own unfavorable actions that caused them to either make losses or miss profits.
    Sep 23, 2015. 07:12 AM | 16 Likes Like |Link to Comment
  • Wall Street Breakfast: The Market Swings Continue [View article]
    Yes, even if China's growth slipped to under 7%, say 5%, that is still good; and far more sustainable. Western economies growing at between 2% and 3% would be a happy event, if that continued for several years.

    7% growth means an economy doubling in just over 10 years, quadrupling in a little under 21years; and eight-fold bigger in about 31 years. Do I need to go further ...?

    As long as there is growth over time, we'll be ok. And even non-growth and reducing in growth companies can provide valuable income through dividends. Look at Apple, for just one example; and that's still growing.

    Investors suffering alternating bouts of elation and despondency cause most big swings in market measurements, not so much the underlying businesses. Take a longer term view, and save yourself a heart attack.
    Sep 22, 2015. 07:46 AM | 9 Likes Like |Link to Comment
  • Wall Street Breakfast: The Market Swings Continue [View article]
    Democratic presidential candidate Hillary Clinton is scheduled to outline a plan to rein in prescription drug costs later today, ... The tweet brought down ... the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) ... 4.5%...

    Not even a candidate yet, tweets, and people respond by selling their biotech stocks when there is absolutely a zero chance that anything will happen, if at all, for years!!!

    The markets are not crazy: some people are.

    The biotech sector is growing fast because science is enabling innovation; not because the odd drug is profiteered. But how many people buying stocks have any knowledge of science? Sadly, the answer today appears to be very few.
    Sep 22, 2015. 07:32 AM | 9 Likes Like |Link to Comment