GS751 (28.64)

Frustration

February 09, 2008 – Comments (4) | RELATED TICKERS: USA , CHINA

We will not see a bottom of builder stocks in 2008, sorry Cramer. Some people think the happy days are back when, Jim Cramer calls a bottom in Builder stocks and the stimulus package gets approved. Sorry Jim but I prefer to do my own research. Everybody now days just wants a hot tip or a quant formula, man people never stop learning expensive lessons do they? ps your lesson's will be a lot more expensive if you listen to Cramer. This pretty much sums up Cramer's credibility.


On a much happier note. A WSJ article caught my eye a couple of months ago. Word on the street is that Coal is expected to be the next big thing, or the new “black gold” (I like numbers not rumors). Who is fueling this demand? China, China at the top of the list. Coal supplies 80% of China's current power capacity - and not very well, if you read my blog post on China’s pollution problem. China is creating demand for energy to power industrialization, mass transit for an increasingly urbanized populace and all the gizmos and gadgets desired by a wealthy society. The Stowe Coal Index, a composite of five dozen worldwide producers, doubled in 2007 compared to a 32% increase in the price of gold. I do not like coal as much as I like fertilizer but hey I doubt I will find many other situations with as great macro prospects as fertilizers have.

Speaking of China some other interesting stuff I have been reading is
R&D $$$ in China.

Probably the most interesting thing I ran across this week was an article by Thomas Pally about the end of the neoclassical monopoly. The part where he talks about the split between the Chicago school and MIT school is well written. I look forward to reading the mentioned book when it comes out.