How depressing can it get? One of the headlines I read on the weekend, “Economy in Danger of Full Stall.” I don’t want to tell you about the others. You’ll get depressed too. Stay out of this market.
My brilliant “Buy Gold” recommendation on Friday was idiocy. The last few two days of trading have been disastrous. I continue to feel confident long-term with gold, though I own less than I have in the past.
The theory is that when things fall apart, gold rises. Lately this wonderful theory has been tested. Gold has fallen as equities have fallen.
You cannot predict this market day-by-day. I’m dumb for trying. You can predict it for the next few months — and they look awful.
This is a remarkable chart. It shows the last 10 days in NLY. Even at Friday’s close, NLY is still yielding a whopping 13.9%.
The high-yielders are holding up nicely. They drop when they pay a dividend and then bounce. back. AGNC has just paid a dividend. It will bounce back.
The Greek crisis bumbles on. Its lack of resultion heightens uncertainty. And uncertainty hurts equity markets. Greece is broke. Without a bailout, it won’t meet its Summer interest payments. Europe is dickering as to what to do. Soros sums it up.
VIENNA – Billionaire investor George Soros thinks a country will eventually exit the euro zone and urged policymakers on Sunday to come up with a “plan B” that could rescue the European Union from looming economic collapse.
Soros, famous for making $1 billion by betting against the British pound in 1992, did not name any country he thought might exit the currency, but speculation is mounting about the fate of Greece as its politicians struggle to agree more austerity measures demanded by international lenders as the price for staving off bankruptcy.
Soros reiterated his view in a panel discussion in Vienna that the euro had a basic flaw from the start in that the currency was not backed by political union or a joint treasury.
“The euro had no provision for correction. There was no arrangement for any country leaving the euro, which in the current circumstances is probably inevitable,” he said.
While he called survival of the European Union a “vital interest to all,” he said the EU needed structural changes to halt a process of disintegration.
“There is no plan B at the moment. That is why the authorities are sticking to the status quo and insisting on preserving the existing arrangements instead of recognizing there are fundamental flaws that need to be corrected.”
SWZ has offered to buy your shares. The price is 98% of NAV (net asset value) on June 29. Which looks like it could be about 9% above where the shares are today. I bought some extra SWZ on Friday in the hope of tendering the few I own and the new ones as well.
2011 Wimbledon TV Schedule. It’s on live – ESPN2 and NBC (All times Eastern) The Tennis Channel runs re-runs (called Encores or Premieres at night. Don’t trust this schedule, however. The TV channels are fickle and it rains in England. Sharapova has an amazing will. This woman wants to win. She also has great legs. Prince William and his new bride are in the stands today, their first visit. Marion Bartoldi was playing so badly in one match she told her parents and her coach to leave the stadium. She came back to win. Other players simply break their rackets. How you get your mojo back, after a setback, is critical to tennis and investing. You’ve got to, though.
Monday, June 27, 7 – 10 am, Fourth Round, ESPN2
Monday, June 27, 10 am – 1 pm, Fourth Round, NBC
Monday, June 27, 1 pm – 6 pm, Fourth Round, ESPN2
Tuesday, June 28, 7 am – 10 am, Women’s Quarterfinals, ESPN2
Tuesday, June 28, 10 am – 1 pm, Women’s Quarterfinals, NBC
Tuesday, June 28, 1 pm – 5 pm, Women’s Quarterfinals, ESPN2
Wednesday, June 29, 7 am – 10 am, Men’s Quarterfinals, ESPN2
Wednesday, June 29, 10 am – 1 pm, Men’s Quarterfinals, NBC
Wednesday, June 29, 1 pm – 7 pm, Men’s Quarterfinals, ESPN2
Thursday, June 30, 7 am – 12 pm, Women’s Semifinals, ESPN2
Thursday, June 30, 12 pm – 5 pm, Women’s Semifinals, NBC
Thursday, June 30, 9 pm – 11 pm, Women’s Semifinals, ESPN2
Friday, July 1, 7 am – 12 pm, Men’s Semifinals, ESPN2
Friday, July 1, 12 pm – 5 pm, Men’s Semifinals, NBC
Friday, July 1, 8 pm – 11 pm, Men’s Semifinals, ESPN2
Saturday, July 2, 9 am – 2 pm, Women’s Final, NBC
Sunday, July 3, 9 am – 3 pm, Men’s Final, NBC
Priceless tech support – 1
Tech Support: “At the bottom left hand side of your screen, can you see the ‘OK’ button displayed?’
Customer: ‘Wow! How can you see my screen from there?’
Priceless tech support – 1
Caller: ‘I deleted a file from my PC last week. I need it. If I turn my system clock back two weeks will I get my file back?’
Harry Newton who wonders why his son is so prescient. Michael asks, “What satisfaction can you derive from managing your investments? What’s the goal?”
The goal is to stay ahead while paying the family’s living expenses. Meeting the expenses is interest from muni bonds. Exceding them are equities. But they’re the risky part, especially since so few money managers have decent skills.
There is little satisfaction in managing something — anything — you have no control over. Gives frustration a whole new meaning.
Rosie did Number Two outside. Her first. And our family’s big weekend accomplshment. We’ve moved way down in Maslow’s hierarchy of needs.
Congrats Harry! I know the frustration you must have been going through with Rosie. It took me two months to train my wife to go inside the house! But we love'm anyway!
Harry, beware, your charts are subtlely & emotionally misleading. Your gold chart looks dramatic but reflects about a 1% drop, your NLY chart a mere 2.7%, hardly worth worrying about if you believe either has long term value. Stop looking at day to day market chaos, you make yourself mishuggenah (doubtless spelled wrong).
Vincent
Harry,
The primordial problem with Greece is they are drafting agreements that involves selling government assets, mainly real estate owned by the state. Greece has the worst title structure in terms of verifying validity of title! In most cases it is impossible to trace ownership. Secondly, 50% of the Grecian people are employed by the state! Appears to be a real socioeconomic nightmare to me. Then there is their relationship with the investment bank entities.
Regards,
D. H. De Vore
Things are depressing – How about another picture of Rosie – My dog Scruffy in California misses seeing her on line
Interesting about Greece. Was talking to a Greek national and he stated that it has always been this way. The only difference is the Euro – and its expectations. What impact would Greece's exit from the Euro have on the market? (other than normal FUD). Was all the new debt in Greece a function of their joining the EC? Was it perceived that the EC would not let them fail? Are the bankers crying foul? If there was no joint treasury like Soros says, what leg do they have to stand on? Screw 'em – and set a precedent – your expectations are not my problem.