Half my friends think the market will tank between now and New Year’s Day. They eye the fiscal cliff and the selling to capture capital gains before the before The BIG tax hike in 2013.
The other half have no clue and are sitting on their hands. They believe Cash is King.
Not surprisingly, the market is confused. It’s going up and down faster than a whore’s drawers. Here’s the last five days:
Whores have never appealed. Especially many of those we elected to Congress. Which is the perfect reason I’m totally incapable of figuring the next few weeks.
I’ll realize capital gains on RadioShack. Heck, can it go much lower than $2.21? It can. In fact, it’s been under $2. But I can’t go broke taking a 70% gain. Nor can I go broke betting on gold, but I certainly haven’t made any money since September of last year. What a miserable recent chart. I thought gold was meant to go up when everything else was in the can. No such luck.
My exit strategy this year was meant to be the $588 million Powerball lottery. Sadly, they drew it last night and I didn’t win. I had talked to God about making it happen for me. This morning He came back, apologized and said next time I’d make his job easier if I’d buy a ticket.
My friend loves Starwood Property Trust (STWD). It yields 7.8%. It originates, invests in, finances and manages commercial (not residential) mortgage loans etc. It has a significant exposure to the hospitality industry, which seems to be doing well. It is controlled by CEO Barry Sternlicht. He created HOT. It is both the sponsorship and the business that provides comfort. It is the leading company in this arena.
The story of my gorgeous new boots. I get up every morning, walk to my home office and sit in front of my computer to pen these “brilliances.” All this week my feet have been cold. Like feezing. And this, despite my cozy, but low, old slippers. That’s it, I figure. Off to UGG to buy some real warm shoes. Here they are.
Waterproof. Sheep lined. Ultra warm. And only $250 (plus tax). Problem solved.
Until, I noticed the air conditioner. It has been on ever since my feet started getting cold earlier this week.
This morning I’m sitting in my old slippers, happy and warm. I’ll pay off the boots by not running my air conditioner in the middle of winter. It’ll only take 12.6 years or so. What an investment. What an idiot.
Things I’ve learned in the last few days. (Which you already know.)
1. Protect everything you own (including and especially your boiler) with a sure arrestor. This one from Belkin is cheap and good:
Only $5.47. Click here.
2. All point and shoot cameras suck when photographing people and children. No matter how many pixels, no matter how big their image sensor, they all have shutter lag. That means you press the button, you wait, the kids and the family stop smiling. And then the shutter goes off. Too late. The only digital cameras with no shutter lag are digital single lens reflexes. They weigh more and cost more. Life is a tradeoff. You marry a great husband who’s a slob (i.e. me). Susan doesn’t see the tradeoff. She suggests (actually insists) that I put my own clothes away.
3. You can fix anything in five minutes — the second time. Make sure you write down how you fixed it the first time. I have a file called techinfo.doc. I drop all my tips and Internet clips into it.
Ah, The joys of house renovation. My daughter is fixing up her house. She emails me
Our plumber (an Irish guy) described our plumbing and heating system as an “abortion.” I thought he meant abomination, but he confirmed that he meant abortion. That is not hopeful.
I emailed back:
Every contractor describes the work he’s called in to fix or change as an “abortion.” It’s called professional courtesy.
You like dance? I certainly do. Someone has clipped together some of the best dance scenes from the movies. It’s a treat to watch. Click here.
Perfect logic – 1
A Mini car crashes into the back of Melvyn’s Rolls Royce as Melvyn is waiting to turn right. The Mini driver is furious. “Why didn’t you indicate?” he shouts.
“What would have been the point?” shrugs Melvyn, “If you couldn’t see my Rolls Royce, how could you see my indicator?”
Perfect logic – 2
Harry: Susan Honey, will you please close the window, please. It’s cold outside.
Susan: Harry, Honey, if I close the window, will it get warm outside?
Harry Newton who urges you to come visit New York City before Christmas. It’s real pretty. The first is part of Lincoln Center.
The second is my favorite Apple store — on Broadway at 67th Street.
I took these last night with my Canon G15. Good for scenes. Lousy for children and people.
Harry – you need smarter friends. Whenever you reference your friends it’s always about them sitting on their hands, selling, or thinking that cash is king. No wonder you are so ignorant about investing. When money markets and CDs are paying 1 10th of a percent CASH IS NEVER KING.
I have zero faith in this country and our voters and our leadership is horrible. But — should the fiscal cliff happen, it will be one helluva buying opportunity.
Instead of talking to your friends I’d suggest you stay home more and read books about Warren Buffett, Charlie Munger, Benjamin Graham, Jack Bogle and the other great investors. They are much more intelligent than your friends.
I’ve read many of the books you mention. I also believe that sitting on a little cash at present is good. As you point out, there may be some nice bargains around if we actually fall off the fiscal cliff. I think my friends are pretty smart. They’ve all done well.I learn from each of them.
Not all cameras are the same. Sony Cybershot cameras have a very low shutter lag.
They’re low, but not low enough to capture children and adults smiling.
Harry, the tips you’ve accumulated would make a great book, especially if you included your winsome humor. It might sell more than your telecom dictionary. I can’t tell you how many tips I’ve used. I liked your dictionary too. My favorite definition I found was for: Station- a dumb name for a telephone. Probably came about when the railroads owned the telephone companies. [lol]
You still short RIMM harry?
This one’s good too Harry, it uses the original music, and gives you the name of the movie:
://youtu.be/PrOJ37grfG8