The economy is slowing down. The FED is getting its wish.
The big banks / big brokerages are pushing their picks.
But really they’re pushing themselves and their hideously profitable Wealth Management business. The pitch is simple: Life is too complicated for you as a stupid investor. Let the experts (i.e. us) take care of your money. If you fall for this pitch or the stocks they’re recommending on CNBC (and elsewhere), you give stupidity a whole new meaning.
Personally I don’t have any brilliant recommendations today. Except one: I spent some of my idle cash buying two-year treasuries. They yield the grand number of 2.66%. I know interest rates are meant to be rising. Hence I’ll earn more if I wait. But if I wait for all the traffic lights to turn green before I leave for my downtown office, I’ll never leave.
My experts tell me that much of the upcoming rate increases are already “baked” into the 2.66%. And if I need the money to buy something I don’t need (or a hugely better investment comes along), I can always sell the treasuries at a slight “haircut.”
And I can sell them any time.
Nice thing about treasuries is they’re easy to buy. I bought with several clicks through my Fidelity online brokerage account. Took 30 seconds.
My best energy stock is Devon. Some of my health care — like UNH and JNJ — are doing well. But… if the economy contracts, oil will fall. And so will energy stocks. And health stocks will get sick.
If you have some cash, buy some treasuries. Thank Uncle Sam for cash dividends. He’s paying you a lot more than your miserable bank pays — even if you’re unfortunate enough to have a “savings” account.
And don’t leave your money here:
And don’t buy falling knives. I clipped this from CNBC recently. I nearly puked. I love catching falling knives.
Technology is still the driving force in our economy
Technology continues to change the world — for the better. The best way to get psyched up is to watch Jensen Huang’s recent address. Watch it all, though it is long — nearly two hours. You’ll get psyched. Seriously psyched.
If you want to understand Putin (God Forbid) read this:
It’s really good. Really good. It’s accurate. My ex-spook friend recommended it. I’m reading it on Kindle on my iPhone. Wonderful.
If Raffa can win the French Open with an anaesthetized foot, you and I will survive the next few months of a weak stockmarket, featuring lousy tech stocks.
That’s it for now.
I’m busy with heavy nonsense. I’ll write about the nonsense tomorrow, or so.
It’s funny how idiocy peaks during summer. It’s starting early this year. — Harry Newton
