Most expect the fed to lower interest rates again next week. The question is by how much. A .25 cut would really do little in my opinion. A .5 one is more likely. But I say make it .75. It would be a big enough splash as to really make equities more attractive just from a yield perspective alone. I submit that would even push the DOW back over 9k and even closer to 10k. We really are getting too close to the Oct 10 bottom which could be tested yet again, I fear, on Friday. The redemptions and margin calls are just snowballing too much. This market really has become a casino now. I really don't even want to look at my portfolio anymore until 2010 (tho could be a nice surprise with all the dividends accumulating). [more]
With all the volatility. With all the doom and gloom. With all the forecasts for future major inflation. Why is gold only at around $844 per ounce?
Looks like G7 is starting to do what needs to be done. They announced a bank intra lending guarantee plan. Not a blanket guarantee, but at least one that might help push down libor, and get the money flowing again. This is good news IMO. Will it be enough? I certainly can't say but this and other programs might be enough to put the brakes on a financial collapse.
I keep hearing and reading about this. Saw an eyeopening chart on it too on Kudlow. Within the last 2 weeks this thing has skyrocketed to 4.75% Despite Feds lowering interest rates. Seems to also coincide with the tremendous market drop. Is there a real connection or just coincidence? G7 meeting tomorrow too, guessing to discuss how to get that number down.
One of the concerns I had about calling a bottom was the lack of volume. Well it is there now. And you have VIX making record highs. Either or both Friday and Monday are going to be ugly I suspect. You are about to see prices on stocks at mindboggling lows. I still have 50% cash just waiting to jump in. I just don't want to be the ONLY one ;p
K I don't know how to link stuff because I am a computer foofhead. But if you go to yahoo Finance and hit the message boards you will find the links there. I love this stock I have been buying it up because of the yield. A reading of the CEO report and charts indicates that their yield is pretty secure over the next 2 years. With the stock now trading under $6 dollars and a November dividend due, which is expected to be .50, this is a pretty damn good cheap stock. I bought up some more. [more]
Yeah you read right ;p As a consumer I suppose $10 oil would own. But I am realistic enough to know that we have just so much of the stuff and it is only getting harder and harder to find. But one thing I am a true believer in is alternate energy. I WANT to get us off of Foreign oil. I am sick of the Middle East. I am tired of seeing our dollars going there and then having them buy up everything here with those dollars. I'm not getting fooled by that "oil is dropping because of recessionary fears" garbage. Yeah maybe in the short run. But we know damn well that over the decades supply will only get tighter and tighter. [more]
In a reply to someone's blog over the weekend I wished that the market would just lose 1000 points already so we finally hit the damn bottom. Well I almost got my wish today to my chagrin. I have been arguing 10k is the bottom with 9k the panic. We saw it head to 9k then bounce back to 10k. I would like to think we bottomed but the lack of strong negative volume still has me concerned. [more]
We are seeing pure panic now. Vix over 50. Prices on stocks giving them dividend yields over 10% now. Stocks with forward PE of 2. Mineral stocks so low you would think the world has an abundant supply with no one wanting to build still. Now is the time for those who have money on the side to start buying up these bargains. If this isn't capitulation going on I don't know what is.
I understand the argument of a world recession, tho the slowdown really was brought on by 2 things in my opinion. First, the world really does revolve around the US, despite all the hullabaloo of BRIC. They sell to us plain and simple. We aren't buying and now they are declining. Second, all those foreign banks kept raising their interest rates to fight inflation. Well recessions tend to be the result (which is what Italy and Spain were crying about when German dominated ECB kept raisng rates). [more]