The World Economy Tore A Hammy [more]
So I have gone to the dark side. I see extreme problems in the CAPs systems and the quicker they are exposed, perhaps a general overhaul of the system will be more likely. For anyone following my picks, remember that they will nearly all be cheesy picks designed to show how flawed the system is.
I'll see you at the top ...
There are two guilty people invovled in this market surge since the Feds 1/2 point cut. The first tainted hand is the Fed. Do you know why we have a housing bubble? In large part to the Fed of the past slashing rates everytime something troubles the economy. All of the excess cash found its way into the housing boom and now we are paying the price. Slashing the rates again is another short term drug to keep a weak situation on its feet. Economic downturns are a good thing. They crush the weak companies so that only the best ideas are left standing. Creative destruction. This recent cut will allow the credit glut to continue a while longer and speculators are likely to continue to push their luck on the risk spectrum. It is likely the bubbles will appear in other areas, perhaps commodities. Since this trend of bailout is now well established, is anyone long on the dollar? [more]
Since I picked WWIN to outperform, the stock has fallen over 12% in less than 15 days and concurrently made a mockery of my stock picking ability. As far as I could tell there has been no news regarding the company and the movement appears to be little more than a revaluation of the company. Now would be the time to take a second look at the company and examine my likely flawed analysis. [more]
Getting the S&P gain added to your underperform call's score creates a vast disparity as everyone has noticed. I've read both sides of the argument, and I find that there is truth in both sides. However, the players who do nothing but call underperforms and then viciously defend this as completely legitimate are way out of line. Calling underperform IS a service to the caps community, but many of the underperforms are not shortable in real life. They are over the counter under 5 dollar stocks they are already rated 1 star (and thus of limited value to the community). [more]