squawk

Despite Its Recent Run-Up, The DJIA Isn't Expensive

Re: "but this market is WAY OVERSOLD." Presume you meant to say "WAY OVERBOUGHT."

Fellow alum.


On Jul 25 01:30 PM HATEFEEBAY wrote:

> As a trader that trades nearly $10 Million a month in my home, I
> am literally buying physical silver, silver stocks and DXD against
> the DJIA. This is CLEARLY a bear rally, no forward earnings, unemployment
> increasing where revenues will shrink, the US printing money both
> literally and figuratively monetizing the debt to levels not seen
> in history, the US dollar is GONE, I want nothing to do with it and
> I am an American, a very scared one. Finance is my gig, Wharton Alumni
> Class of 2003, look me up and one that has done well even in this
> mad market, but this market is WAY OVERSOLD and it should be at 7000
> IMHO and I am shorting it because of quantifiable metrics will come
> into play and this economy will tank thanks to Obama and Company
> and all their idiotic policies. Going forward, I will not live in
> the US much longer and I have been overseas a lot and this country
> is socialism and rewarding people for not working-a very sad time
> in our country, perhaps the saddest yet. Gary

Friday Options Outlook: HIG, CL, SWY, CHK, GFI, CSCO, MIR

Agree with Hal. Your view of the present market is misplaced, or at a minimum tainted by perhaps a short position. Friday's labor report is an affirmation of fears the were ALREADY reflected in the market, & perhaps another sign that we are presently in the midst of the worst of the recession (i.e. job losses).

With the market looking out a quarter or two, the view is trending to either flat or slightly positive, not down. My view is that we will not see a contraction on the job front to the degree we did in the November report. Time will tell whether the market is right or wrong.

Our Biggest Infrastructure Need? Think Broadband

Biggest infrastructure need? While broadband to less populated should certainly be part of any national infrastructure policy, your hypothesis is completely misplaced as a consequence of decades of neglect of the nation's physical infrastructure. By physical infrastructure, I'm referring to roads, bridges, mass transit, inter-city rail and appurtenant facilities. Healhty to any economy is the ability to move goods and natural resources where they can be put into the stream of commerce.

You can click to initiate an e-commerce transaction all you want from your 100 mbps connection, but if the ability to move that good or resource from its source to its destination is impaired due to incapacity, decay, or failure, such investment in broadband would be for naught.

Unfortunately, when it comes to basic economics, investment in less-populated areas is not the most efficient way to turn around a rapidly slowing economy. Your article is well-intended, but certainly not focused upon priorities.

The Most Dangerous Place to Get Investing Advice

Overall, good article, but agree with prior comment critical of article as way too long. This is a financial blog, not a book reading.

Cisco: Internet Traffic to Boom

Big ISPs will respond to market demand by tailoring their pricing models so that they too are the beneficiary of this growth. They will not put a direct lid on the demand for video traffic, but rather institute new pricing plans that may curtail demand, albeit at the most extreme consumption levels.