Earnings from Big Tech Don’t Matter Stimulus put more $ into the economy. Travel and entertainment spending simply moved to tech. Services spending plummeted while people still bought stuff online. Everyone was online significantly more than ever. 3rd and 4th quarter are what really matter. How will these companies do when there is no stimulus?…
Why I am still a bear – Part 2 Sorry for delay in continuing this series. It has been a long week, but let’s get to it for today! Reason #2: Earnings matter: Price/Earnings ratios mean revert over long periods of time, whether there is Fed intervention or not There is this funny premise that…
Why I am still a bear – Part 1 Everywhere I turn, the bears seem to be running for the hills. There are fewer and fewer of us. It reminds me of February. Granted, there are a number of very famous investors that have fired warning shots lately regarding the stock market (Buffett, Druckenmiller, Marks,…
Hertz front and center! Well someone at the SEC finally watched CNBC and took notice that maybe the Hertz offering is bad for the general pubic. Amazingly, the stock rocketed 21% higher this morning before settling around yesterday’s close price. Anyone trading this stock at this point would be better off finding a roulette table!https://www.cnbc.com/2020/06/17/the-sec-told-bankrupt-hertz-it-has-issues-with-its-plan-to-sell-stock-chairman-jay-clayton-says.html…
Buffett scolded again…and again…and again. It has been a rough few years for Mr. Buffett, but don’t think he hasn’t seen this before. Is this time different? This time valuations don’t matter? Has this generation finally outsmarted the financial markets and established a new higher plateau where prices can only go higher? Mr. Buffett,…
CalPERS borrowing $BILLIONS In a short few weeks, it will mark the 7th anniversary of moving my family from Los Angeles to Raleigh, NC. The list of reasons why is long. CalPERS is just another ridiculous organization that I am glad to be away from, but sadly, the stable retirement of many friends and family…
Robinhood’s user activity might be speculation Robinhood, a free trading platform adopted by many a day-trader during this crisis, is showing us that retail investor activity is heavy bent on speculation. https://www.businessinsider.com/robinhood-traders-bet-hertz-bankruptcy-stocks-despite-huge-risks-2020-6 Bankrupt companies stock is still worth $0 Hertz filed for bankruptcy and Chesapeake Energy has said bankruptcy is basically imminent. These companies…