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Madcap emotional stock market… and how to deal

It’s not difficult. We are not in a value market. We are in an “Emotion/Momentum Market.”

Stocks are flying in and out of favor faster than ever. It’s the characteristic of a bull market — like the heady bull market we’re currently enjoying. You have to be in and out very quickly on the most emotional momentum stocks.

Sample emotional rollercoasters.

+ Bitcoin. See below.

+ GE. See below.

+ Square. This morning a Nomura Instinet analyst forecast a 59% rise in SQ this year. Payment company Square is “analogous to Amazon or Google in their early days” but Wall Street is valuing the stock all wrong, according to Nomura Instinet. Read more here. 

Personally I have loved Square — since the day my local country store in our one store town started using and Steve, the proprietor, told me he loved Square’s square white equipment and its Internet payment processing service.

Today I updated our recommended portfolio. It’s the right hand column on the web site. It’s got some new stocks.

GE? Down and Down. 

It’s so depressing to read about GE. It’s a huge conglomerate in an era (i.e. today) when conglomerates are no longer in fashion. And so many parts of its enormous business are imploding. I think the stock is going lower, much lower. They just reported. They are taking a huge writedown. Everything I read says the GE mess with its popup losses is way beyond anything their new management expected and the problems are really  hard to solve. I don’t hear a plan. I don’t think they have one. In short, they’re floundering. It’s going lower and lower. Here’s a good summary: Click here.

Here’s GE over the past ten miserable days:

GEOvertendays

It’s going lower.

Bitcoin’s Month Of Hell

Rich Ross Discusses How Much He Hates Bitcoins. This is brilliant.

hateBitcoins

Watch this video.

You can read more about the bitcoin barney on ZeroHedge. This stuff is fascinating. Click here. 

I do not own any bitcoin. I did that. It went down. I sold fast. I have zero tolerance for losing money on things I don’t understand. To mimic Buffett’s philosophy, I’m good at losing money on things I understand, let alone losing money on things I don’t understand.

California mudslides are awesome

I looked for a great photo of the recent Montecinto slide. All I found was a California mudslide from 2005. Awesome. Does it qualify as “Are you nuts?” to live at the bottom of this mountain?

Mudslide

More Don’t Do Stupids

+ Someone coughing? Change your airline seat instantly, if not sooner.

+ Wash your hands regularly, including between your fingers. Don’t touch your eyes.

+ Take it easy. Walk carefully. Don’t fall. One fall over 60 and it’s all over.

+ Everyone and their uncle is warning me of the nightmare that is called a hospital’s Emergency Room. Don’t believe me? Visit an Emergency Room. The visit will make you sick and cautious.

+ NSAIDs are now dangerous. A recent study conducted by researchers at Montreal’s Centre de Recherche du Centre Hospitalier found that individuals who take NSAIDs on a daily basis are 20 to 50 percent more likely to suffer a heart attack down the road than those who don’t. If you’re on the higher end on that risk spectrum, you’re ingesting only about 1,200mg of ibuprofen—or about roughly six tablets of basic Advil or Motrin—every day. It’s even riskier to take Aleve: just 750mg of Naproxen, the active ingredient in Aleve, will push you closer to the 50 percent end. For more, click here. 

The phone works

Everyone will drop their price, if you call them on the phone and politely ask them.

+ Geico dropped their higher renewal price when I told them how few miles my car had done.

+ Cable companies will drop their price if you’re going with their competitor.

+ Ditto for cell phone companies.

+ Hotels will drop their price, if you book directly and don’t go through Expedia, Hotels.com Trivago, etc.

Tasteless “Humor”

An Irish boy stands crying at the side of the road.
A man asks him,”What’s wrong?”
The boy says,”Me ma is dead”.
“Oh bejaysus,” the man says.
“Do you want me to call Father O’Riley for you?”
The boy replies,”No tanks mister. Sex is the last ting on me mind at the moment..”

A woman has a medical at the doctors…
“You are grossly overweight,” he says.
“I want a second opinion,” she exclaims.
“OK. You’re ugly as well.”

HarryNewton
Harry Newton, who is looking for a little white pill that will keep Sophie, age three and half, exactly where she is now for the next twenty or thirty years. I suspect I’ll find that pill the moment one of my “Cure For Cancer” biotech investments hit paydirt. I’m not holding my breath for either. You gotta admit. She really is cute! And talented, too.

sophieinjat

I did not buy the car. It belongs to one of our neighbors.