In Search of the Perfect Investment

Two Goldman Sachs traders coming into the city on Friday on a a Long Island train were heard to say that markets were due for a 10% fall.

They fell hard (2%) on Friday. Today they will be up.

I spent the weekend reading, searching for gloom and doom in the world.

There are problems  — in places like Turkey, which are in a political pickle.

But here we’re doing fine. Caterpillar’s ebullient earnings report this morning confirmed that. CAT’s growth is coming from construction, especially housing which is roaring back. Sunday’s New York Times business section had this absolutely fascinating piece:

 In Six Houses, a Market Mirror
All over the country, house prices are rising. But in some regions, prices are recovering from much deeper troughs. Below are six houses that were sold several times in the last few years, reflecting the overall market trends in their metropolitan areas.

Apple reports after the close tonight. I think its earnings will be strong and the stock will pop. This weekend’s Economist reports that Apple now has more stores in Shanghai than it does in San Francisco. Apple is clearly not worried about China “slowing down.” Neither am I. The Economist also reports:

In the 1950s and 1960s the world economy was transformed by the emergence of the American consumer. Now China seems poised to become the next consumption superpower. In all likelihood, it has just overtaken Japan to become the world’s second-biggest consumer economy. Its roughly $3.3 trillion in private consumption is about 8% of the world total, and it has only just begun. (My emphasis.)

Wonderful, wonderful golf
Two women were playing golf. One teed off and watched in horror as her ball headed directly toward a foursome of men playing the next hole.

The ball hit one of the men. He immediately clasped his hands together at his groin, fell to the ground and proceeded to roll around in agony.

The woman rushed down to the man, and immediately began to apologize.

“Please allow me to help. I’m a Physical Therapist, and I know I could relieve your pain if you’d allow me,” she told him.

“Oh, no, I’ll be all right. I’ll be fine in a few minutes,” the man replied. He was in obvious agony, lying in the fetal position, still clasping his hands there at his groin.

At her persistence, however, he finally allowed her to help. She gently took his hands away and laid them to the side, loosened his pants and put her hands inside.

She administered a tender and artful massage for several long moments And asked, “How does that feel? Does that feel better?”

He replied, “It feels great, but I still think my thumb’s broken.”

Harry Newton who bought some ALK and AMP last week. I should have been more aggressive buying more on Friday. But it’s not easy to buying into a cratering market. I’m training myself. I will admit to reading Jim Cramer’s “Get Rich Carefully” over the weekend. So far, it’s semi-interesting.

Turkey