Loading ...Taking all this into account, I would recommend a market neutral strategy that should be cloaked from the affects that market manipulation will have on your investments. I would recommend going long commodities (especially oil) and companies like PBR, KO and SJR for the weak dollar play. At the same time I would be short homebuilders (LEN, CTX, and KBH), and retail construction companies because of the inflation headwind and probably increase of rates. This way, if the dollar gets strong, its because the economy is getting much worst and rates went much higher, crushing the homebuilders and construction companies. However, if the dollar gets weaker to stimulate the economic recovery, you’ll catch the spike in commodities prices. At the same time, if a hurricane is off the gulf coast, you can have a little something to cheer about to offset the misery that it will bring. […]
|
||||
|
I ask myself that at least once a day the last 4 years. It’s amazing, you see a set of events taking place, decisions being made and special interest taking control of “a target” and you know exactly what will happen. It is like watching in slow motion a result that has not yet happen DESTINED to materialize from choices made. You scream, shout, warn and plead to whoever will listen, but they don’t. You start to wonder if it’s your own lack of communication skills or if it’s your audience inability to fundamentally understand the subject matter. […] I’m going to pretend for one second that the market is rational…just for a sec. The one outcome that could completely through the market for a tailspin or propel the market to new short term highs is the fate of CIT Group. This Monday, CIT Group will announce if they were able to come up with additional financing to keep its doors operating or if they will file for chapter 11. My understanding is that CIT Group provides short term capital for over 1 million small businesses. […] This was the first full week that the headquarters for independent investors (Alphas Edge) was live. Many things were accomplished within one week; Google/twitter search added, layout was slightly changed, armature banner was add, new links, 9 new posts and 6 pages started (online brokers, stocks, options, futures, commodities and bonds). These are exiting times; you get to watch something great being built from the ground up. I have to confess, it’s a lot of work for one person to keep adding content and doing the site. We did achieve some milestone I had set for Alphas Edge. The first sweet milestone was coming up on the first page of Google Search for Alphas Edge (we were at the top most days this week). The second sweet milestone was having over 100 unique visitors and 8,000 hits. This was special to me because I haven’t really told friends or family about starting a web site for independent investors. This means that the 100 unique visitors came from Craigslist, my favorite forum. […] Yet, I am more pessimistic today than I was at the top of the crash. Back then, I believed in free market capitalism. I was able to look at a company’s financial statement and logically reason if it was undervalued or overvalued. More importantly, I didn’t have to worry about my well managed bank competing against incompetent government owned too big to fail corporations. Everything that needed to be done to REALLY fix our economy was skipped and easy short term manipulation was selected. Our leaders made the biggest mistake anyone can make, reward the bad behavior and punish the good behavior. […] Every day people ask me, why are you so bearish on stocks. Ironically, my answer has been the same for 3 years; nearly every publicly traded company is financially insolvent. Sure, they have decent earnings, report profits and what Wallstreet has accepted as healthy balance sheets. But if that was the case, not the perception, we wouldn’t have events like the one that’s happening today at CIT group. How can a company go from 0ver $10 a share to $0.35 a share in 6 months? […] Something Iota is bullish on and worth investing long term in..Can it be? In current economic times, the Great Iota is not optimistic about much. There are exceptions, one in particular is Google. Google is set up to explode in the next 1 to 3 years. Now, everyone knows Google is a good company, […] So, this is the exact bull shit that I’m continuously talking about. The first call for GS was EPS of 3.54; today they announced EPS of 4.99. Yesterday, before the number, Goldman Sachs moved from around 140 to 150 in a single day! Note, this was before earnings were released. Yet today, after a huge blow out numbers, the stock is actually trading down pre market. I expected this today simple because GS executives will need to dump shares into strength. I am 100% certain that the information was leaked (or the very minimal hinted) by the early announcement of huge record breaking bonuses for their employees. At least that was how I assumed they would have record breaking number, that and the fact that they received 25 Billion from AIG. […] |
||||
|
Copyright © 2024 Alphas Edge - All Rights Reserved Powered by WordPress & Atahualpa |
||||