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starbucks4ever (97.89)

The market is behaving better this week

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November 12, 2010 – Comments (5)

I am content to see this pullback, which proves that just as I said last week, there was no particular rush to buy stocks at 1230 just because of this QE2 monster. After all, Bernanke did not just give $600 Bln to companies as a free gift, so a money-losing bankruptcy candidate still remains a money-losing bankruptcy candidate... 

5 Comments – Post Your Own

#1) On November 12, 2010 at 2:05 PM, rofgile (99.41) wrote:

zloj:

 I have to agree - stocks are moving more based on current and future earnings prospects.  The market is still a speculative place, but at least it is grounded in earnings.  

 I wish I had bought NFLX a year ago! 

 -Rof 

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#2) On November 12, 2010 at 2:12 PM, starbucks4ever (97.89) wrote:

I also wish I did, but if I had a habit of buying speculative stocks that would allow me to buy NFLX, I would also have bought a bunch of losers, so upon a second thought I don't regret it :)

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#3) On November 12, 2010 at 2:19 PM, rofgile (99.41) wrote:

zloj:

 I don't typically buy tech stocks (though I do own GOOG), so I missed out.  I've just been realizing with an HDTV/internet/NFLX what the future of tv is going to be like.  Cable is dead, broadcast will die..

 I'm still buying boring manufacturing companies and shippers..

 -Rof 

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#4) On November 12, 2010 at 4:10 PM, rfaramir (29.33) wrote:

"Bernanke did not just give $600 Bln to companies as a free gift"

No, he printed *himself* $600B and used it to purchase gov't securities from banks that had already purchased them from the gov't. This gives them cash with which to speculate, and they're choosing to do it in the stock market and commodities markets, as you'd expect rational people to do.

It's not evil that they're speculating, but evil that our purchasing power was diluted in order to enable it. 

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#5) On November 12, 2010 at 4:32 PM, starbucks4ever (97.89) wrote:

Sure, but the companies whose stocks the banks speculate with did not become more profitable. Take XOM, for instance: it was a Ch 11 story, and will remain so even after QE3. And the Russel 3000 index is full of such zombies.

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