I’m not looking at the stockmarket today.
I want the euphoria of yesterday to last through the weekend.
Why did yesterday happen? Who knows.
Where is the market going? No one knows.
We do know that popular stocks are skyrocketing — irrespective of minor things like their high price earnings ratios — if they even have one. Check out Amazon for the lack of one. Check out Netflix for a high one — like 311. Or ATHN with a P/E of 11,195.
What should you do?
First, you should be in. There’s no other place. Bank savings accounts and CDs are a joke. Bonds suck. Too many people are not in — scared by what happened in 2008 and the irrationality of it all. It’s still irrational. But this time it’s working in your favor.
Second, you should be broadly diversified. There are still too many “gotchas” you can’t predict — like what happened this week to the potash makers and the debit card issuers.
Third, you should identify areas you should definitely not be in. I don’t like gold or gold miners (or most miners), oil companies, oil service companies, natural gas companies, etc.
Fourth, you should have a very short fuse. If a buy starts losing money, sell it. Give it to 6% — not 8%. If it starts to bounce up, buy. The whole nature of “investing” has changed with cheap online trades. Getting in and out for $16 ($7.95 each way) makes trading painless. I’m also finding that because trades happen so quickly, buying and selling at “market” (not limit orders as Cramer suggests) makes considerable sense.
Fifth, which shares? I have a list in the right hand column. It doesn’t include any banks, but probably should. Look at JPM and MS. My favorite stocks are BRKA, GOOG and HON. But the three merchant bankers, APO, BX and KKR should do very well if you hold them through the first half of 2014.
The hype continues Most everyone is on a roll about how good America is doing. The Economist covered our luck in recent weeks. And this week it’s Time Magazine‘s turn.
Three things about the Fabrice Tourre’s conviction.
1. Goldman Sachs is paying his legal bills, though he doesn’t work there any more and will never work there or probably anywhere on Wall Street ever again.
2. Goldman has brilliantly isolated itself from the case. It threw Fab under the bus. A classic case. The firm continues as is — with only one ultra-minor blip. It previously paid a miniscule $550 million fine and settled. No one went to jail. No one paid a nickel out of their own pocket. No one is bad. Business as usual. For the SEC’s press release, click here.
3. In future, everyone on Wall Street will be more careful about their emails.
It’s not a happy picture for clients of Goldman Sachs. The bottom line: You can’t trust a word they tell you.
Why am I showing you a picture of two hard-boiled eggs? For no other reason other than to show you innovation is alive and well. Our local Duane Reed drugstore, now a delicatessen, is selling two hard-boiled eggs for $1.49. I bought them. They’ll be good for today’s train trip. Expensive way to buy eggs.
Over the years, I’ve shown you pictures of stuff that comes in small packages and costs a fortune. This photo follows that tradition. Invent a product and make yourself a gizziollaire. Think WD-40, NewSkin, GooGone, etc.
Another one of those advantages for the privileged paying few:
Annual subscription is $2,388 or $199 a month.
Why Indians don’t rob banks. You’ll love this short video. Click here.
Thoughts for the weekend:
+ America is the only country where a significant proportion of the population believes that professional wrestling is real, but the moon landing was faked. – David Letterman
+ I’m not a paranoid, deranged millionaire. I’m a billionaire. – Howard Hughes
+ Men are like linoleum floors. Lay ’em right and you can walk all over them for thirty years. – Betsy Salkind
+ The only reason they say ‘Women and children first’ is to test the strength of the lifeboats. – Jean Kerr
+ I’ve been married to a communist and a fascist, and neither would take out the garbage. – Zsa Zsa Gabor
+ When a man opens a car door for his wife, it’s either a new car or a new wife. – Prince Philip
Harry Newton who hankers back to those halcyon days of earlier this summer at our rented villa in Tuscany, Italy. Here are daughter Claire and daughter-in-law Anneke doing their morning exercises by the pool, framed by the gorgeous tall Cypress trees (also called pencil pines):
I want to grow them at our property in upstate New York but Susan tells me it’s too cold. I’ve settled for tomatoes. So far, they’re tiny and green. About the size of a quarter. Full of hope. But little action. This weekend, I’ll water them and talk to them. It will help?
Farm eggs do taste better than the crap you buy in the supermarket.
How can you not love Taylor Swift’s talents and work ethic. From the latest Rolling Stone, a wonderful quote. She’s the best marketing genius ever:
At the end of the day, the sound of a screaming crowd is my favorite sound, and the sight of a sold-out stadium is my favorite view. Everything derives from that and revolves around making those people dance, sing along, feel like they aren’t alone, and ultimately want to come back and see me next time.
Next time boil two of your farm fresh eggs and put ’em in a zip-lock bag…much better all the way around. Best way to boil an egg…don’t boil them. Place eggs in a pan and only bring them to a boil…leave them tightly covered without heat for 10 minutes, pour off the hot water and replace with cold water and ice cubs…no green covering around the yolk…they peel much easier. Start peeling them from the bottom where there will be a large gap between the egg and the shell.
Most food found while traveling is not particularly healthy. Delicious, yes. So bringing your own healthy food is smart, healthy and far less expensive. Flew to NY and back with my little bag of goodies. String beans, cheese balls, almonds, and cherries. The packaged hard boiled eggs would be perfect.
I strongly disagree with your “advice” to “have a short fuse.” You know who else would disagree with that advice? Warren Buffett. Let me see: Harry says one thing, Buffett says another…who do I listen to…Hint – it’s not Harry!