S p back 7. 2 . At jim query, would you buy amazon here . My quick response, two very different questions, yes and no. Thats right. Yes, i would buy amazon. No, its not worth 400. Welcome to the world of bull market discipline. The discipline to buy stocks that arent cheap but are right. A discipline that will be tested in the next few days. At last because of todays last hour 7 selloff sell, sell, sell that shook people out of their complacency. Im talking about the rigger to recognize what the market actually wants, though, not necessarily what you want. The dichotomy says you would rather have a portfolio that is hated and making money than be bound by concerns that may not be as relevant as they should be. Lets start with amazon, which hit at an alltime high today, 399 before being repelled along with many other stocks by waves of afternoon selling. This weekend on the most watched news program in america i called it a terrific advertisement for amazon. It was incredible. A film ab
Climbing and why everyone has such a good return. The nasdaq sank and the nasdaq finished flat. Come when does prudence dictate ringing the register and going home house of pleasure. Hot us to to the house of pl. Welcome to the intersection of Money Management and valuation. First, i can tell you what we used to do at my old hedge fund. If we came into november well ahead of the averages as nicely as they are this year, it was, as they say a nobrainer. Wed sell everything. Sell, sell, sell, sell, sell, sell except can half a dozen nolick ied banks, the ones we had high exposure with and couldnt get out of and we would trade every day from a standing start. Buy, buy, buy, buy literally day trade and wed start from scratch putting money in and take money out. Yes, we knew where the money was. In the bank sometimes it would keep us tormented by watching the stocks. I went to a lot of movies back then. I think i must have seen shawshank, the fugitive and braveheart ten times each. They sav
We were supposed to be in a panic selloff mode, right . The market plummeting instantly and the fed slowed down the bond buying . So many allegedly intelligent people have been yelling this from the rooftops for years and ive accepted it as conventional wisdom. Why did stocks rally beautifully on the news that the fed is starting to cut back on all of that bond buying . The dow soaring, and the nasdaq jumping 1. 15 , simple. The fed knew what it was doing. Because ben bernanke knows what hes doing. Because in this one case, the one rare case we have a part of the government smarter than the people who trade stocks and bonds for a living. We might have to endure endless attacks from ben bernanke and the president and the policies that hurt growth. We can digest the endless slagging of this outgoing fed chief for creating balloons and the disciplines that so many ideologues dogmatically think are right. However, in the end, though, and today is the end, the last meeting of the ben bernan
How can the market keep climbing and why everyone has such a good return. The nasdaq sank and the nasdaq finished flat. When does prudence dictate ringing the register and going home house of pleasure. To the house of pleasure. Welcome to the intersection of Money Management and valuation. First, i can tell you what we used to do at my old hedge fund. If we came into november well ahead of the averages when they were up as nicely as they are this year, it was, as they say a nobrainer. Wed sell everything. Sell, sell, sell, sell, sell, sell except half a dozen noliquid banks, the ones we had high exposure with and couldnt get out of and we would trade every day from a standing start. Buy, buy, buy, buy literally day trade and wed start from scratch putting money in and taking money out at the bell. Yes, we knew where our money was. In the bank sometimes it would keep us tormented by watching the stocks and doing nothing. I went to a lot of movies back then. I think i must have seen shaw
Dow gaining 40 points, s p climbing. 29 , nasdaq. 20. Companies that make heavy equipment, companies that help make planes or cars or homes just keep winning over investors hearts. As we play in this vacuum thats virtually devoid of earnings reports, how thick is this love . Not long ago, i predicted that caterpillar after a serious spell of poor performance could become adored. Adored beyond all reason as the economy improves. It seems so natural given that united rental, a company we had several times and said its heavy machinery customers are as bullish as theyve ever seen them. Its reasonable to think theres a big uptick coming in construction spending. Maybe from the boom in oil and gas and nonresidential building. Its no surprise when the once despised now acclaimed caterpillar, big dow stock smashed through 100 like a hot knife through butter. It is the leader of 2014 that i follow. Companies that melt iron and bend steel are acting the way the biotechs acted not long ago and a