I agree that prices paid are increasing, however the case last year was falling prices and that is bad for the corporate earnings, in my opinion these prices that created the fuss today will not increase at the same rate, what matters the most and where most of the spending is going thati s technology the prices are falling and productivity is increasing.........
Now look at my foolish bond trade suggestion, that was a 100% winner call, both ways we would have made money, I bought the 114 calls for 21 and sold them for 29, as market was hit with bad numbers the bonds as you must have noticed rallied half a point, my trade to long the bond was a great trade as it protected you from both sides, if the market would have rallied, bonds would rally as inflation fears would lower, on the other hand if market would fall like today as we were hit the bonds rallied on flight fears now this kind of classic trade maeks me fel good.
The premium that I got out has disappeared from the 114 call and it is trading around 22, that signals for me that 'flight to quality aspect' premium disappearance is something. I look for these sure trades and market provides us with many as far as 1267 is respected we can now worry about future releases .... |
