I've been listening to some smart investors talk about how to invest in an environment like this. These theories vary and this helps me shape my frame of reference. It allows me to hear how bankers, investors, and politicians think and then I can ground some of that in reality because I can probably tell what's going on with the everyday person better than they might experience.
Right now we are in rapidly changing times in the US, some parts of the world and of course in the stock market. The stock market has been violently gyrating and for the last few weeks it has been decidedly lower. The smart money will tell you not to panic and while I subscribe to this theory it can be very difficult. The economy is weak and some are reporting the increasing risk of a double dip recession. For me, I go with my gut feeling and I have stayed consistent that too many Americans are hurting for anyone to be blindly buying stocks. I agree that certain actions along the way have helped to stimulate the economy but not enough has been done to help alleviate the areas that the average citizen is being hampered by. I believe the economy will continue to be fragile until: 1) Jobs return in a consistent fashion 2) Debt levels for the average American must get rightsized, and 3) Housing burdens for the average person become less of a constant drag on people and their local economies. I'm not happy with the fact that are politicians can't stay focused on some of these core issues that are plaguing us today and make this their top priority. So I will remind you to not get fooled by their gimmicks of last minute deal-making and understand that this slow painful decline will continue until they address the real problems at hand.
I do wish I had sounded a louder alarm because I've noticed that many big investors had recently been hedging their bets and protecting themselves if things got bad. And as you can see they got bad in a hurry. I think my approach will not change from the points I've been highlighting from the beginning of the year, and that is this is the YEAR OF DEFENSE. See the following articles to learn what we've been doing to stay defensive in these uncertain markets:
Showing posts with label double dip. Show all posts
Showing posts with label double dip. Show all posts
Monday, August 08, 2011
Wednesday, July 13, 2011
New Tech Titans, Double Dips, & Don't Label Me...
New Tech Titans
The technology field is definitely active as social networking, gaming, movies, and music continue to seamlessly weave themselves into our daily lives. It's time to refresh your memory on the new tech titans on the block. First off, Facebook leads the charge with their recent announcement of new features: (1) group chat, (2) new designs, & (3) video chat. Many people can't wait for the day this stock IPO's or goes public. Next is Google, who is offering Google+ a competing social network site and chomping at the bit for more targeted advertising. And then there is the simplicity of Netflix. Netflix is now streaming throughout many homes on a regular basis and they are betting that you will stick around even as they raise prices. Sorry to break the news but Netflix prices are going up for everyone...will you pay up?
Other hot technology firms are Linked In, Pandora, Zynga, Square, and others which are changing the way we interact, watch movies, and listen to music. Then we have Groupon which could be potentially be valued ar roughly $20 Billion dollars when they IPO, or become a public company. The question often asked is “Do You Remember The Technology Bubble?” and is it happening all over again. I do believe that some of these firms are legit, but I think a few won't be as popular as they are today. Stay tuned for further posts as I tackle which technology stocks will survive the digital renaissance.
Double Dip??
The economy may be suffering from a really bad hangover that was worse than we originally thought. Financial stocks, housing stocks, and high levels of consumer debt make you wonder if we've learned anything at all from the 2008 crisis. I just don't have the feeling that we are out of the woods yet and I've been cautious for quite awhile. I don't think I am alone anymore as there have been rumbling about more stimulus...is there Quantitative Easing on the horizon, well the Fed might think so. Can you say QE3
The technology field is definitely active as social networking, gaming, movies, and music continue to seamlessly weave themselves into our daily lives. It's time to refresh your memory on the new tech titans on the block. First off, Facebook leads the charge with their recent announcement of new features: (1) group chat, (2) new designs, & (3) video chat. Many people can't wait for the day this stock IPO's or goes public. Next is Google, who is offering Google+ a competing social network site and chomping at the bit for more targeted advertising. And then there is the simplicity of Netflix. Netflix is now streaming throughout many homes on a regular basis and they are betting that you will stick around even as they raise prices. Sorry to break the news but Netflix prices are going up for everyone...will you pay up?
Other hot technology firms are Linked In, Pandora, Zynga, Square, and others which are changing the way we interact, watch movies, and listen to music. Then we have Groupon which could be potentially be valued ar roughly $20 Billion dollars when they IPO, or become a public company. The question often asked is “Do You Remember The Technology Bubble?” and is it happening all over again. I do believe that some of these firms are legit, but I think a few won't be as popular as they are today. Stay tuned for further posts as I tackle which technology stocks will survive the digital renaissance.
Double Dip??
The economy may be suffering from a really bad hangover that was worse than we originally thought. Financial stocks, housing stocks, and high levels of consumer debt make you wonder if we've learned anything at all from the 2008 crisis. I just don't have the feeling that we are out of the woods yet and I've been cautious for quite awhile. I don't think I am alone anymore as there have been rumbling about more stimulus...is there Quantitative Easing on the horizon, well the Fed might think so. Can you say QE3
Monday, May 09, 2011
Notes from the Matix - April Download Pt II
Pharma
Pharma is short for pharmaceuticals and this has traditionally been an industry that I have shied away from as I’ve tried my best to incorporate a rule that I have learned from Warren Buffett and Peter Lynch awhile ago: Invest In Things That You Know
This is at odds at times with the strategy that I’ve been harnessing over time and that’s being a MACROVALUEQUANT. Often, my screens lead me select a stock that I believe has positive momentum (QUANT) and I further weed out these stocks if they are not trading at a low valuation (VALUE) and support my general view on what industries and sectors should do well in the current global economic environment (MACRO). My screens recently led me to 2 pharma stocks (See Pharma Premium Alerts Post) and I was very reluctant to nibble at the bait.
Pharma is short for pharmaceuticals and this has traditionally been an industry that I have shied away from as I’ve tried my best to incorporate a rule that I have learned from Warren Buffett and Peter Lynch awhile ago: Invest In Things That You Know
This is at odds at times with the strategy that I’ve been harnessing over time and that’s being a MACROVALUEQUANT. Often, my screens lead me select a stock that I believe has positive momentum (QUANT) and I further weed out these stocks if they are not trading at a low valuation (VALUE) and support my general view on what industries and sectors should do well in the current global economic environment (MACRO). My screens recently led me to 2 pharma stocks (See Pharma Premium Alerts Post) and I was very reluctant to nibble at the bait.
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