I spoke with a friend of mine this afternoon who has connections in the ethanol industry. If you thought that things were bad there a few months ago, you ain't seen nuthin' yet. Much like the airlines that, scared out of their minds by rapidly escalating prices, hedged a large portion of their fuel at significantly higher prices than we have today, many of the ethanol producers freaked out when corn hit eight bucks this summer and they did all sorts of hedging at extremely high prices relative to where the corn sits now. [more]
I have been repeatedly critical of the ratings agencies who contributed to the mess that we are in today by giving all sorts of garbage AAA ratings over the past several years. These guys have gotten off way too easy. I keep asking myself how on Earth do companies like Moodys and S&P even still exist? Who takes anything that they say seriously? Even if people for for reason that I can't possibly fathom still want to pay them for their "research" and ratings, the government should fine the heck out of them.
When this whole bear market first started, I was letting the massive decline in stocks make me sick. Needless to say, that was not a healthy way to live. Gradually, I have been able to master my fear and I have completely changed my perspective on things. Not only am I not worried about bad days in the market, I actually cheer them on. When I see red, I think to myself, GO BABY GO. [more]
Wow, great news. Look at all of these rosy headlines: [more]
Take the government's absurd ethanol blending mandates and import tarriffs [more]
To work today is to eat tomorrow [more]
There are two industries that I have more inside knowledge of than any other, the auto industry and agriculture. My contacts in the ag sector told me something earlier this week that caused me to close my last remaining CAPS multi-bagger, Monsanto. [more]
THIS IS IT, THIS IS IT!!!!!!! THE MOMENT THAT WE'VE ALL BEEN WAITING FOR!!!!! THE BIG BOTTOM (and who doesn't like a big bottom, right)? These are some of the scariest words that anyone can think right now. I said yesterday that I believe that stocks may have temporarily found a bottom, so why are these words so scary then? Because just like on the way down when losses snowball as fear takes over, fear seems to be gripping the markets now...fear of missing out on the best buying opportunity in our generation. [more]
I think that the markets have finally bottomed out and are poised to bounce back a little over the next several months. Want to know how I figured this out? Here's my secret. I have been absolutely swamped with work, a three week old baby, getting the flu, being hospitalized for dehydration, being the best man in my brother's wedding, etc... for the last several weeks.
Last night I finally had a chance to sit down and look for bargains out there. I placed limit orders at Friday's close for four stocks, determined not to chase them in this sort of environment. I wake up this morning and futures are up massively. You all can thank me for putting a stop to this terrible carnage. If you would like to give me a token of your appreciation, accept beer as payment.