Jim, yep, we are in a drifting market, for sure. A very busy day, what with the index dumps, crude oil over $37, and this, G (Gillette) getting pasted for something we talked about previously, the weak, (or worthless) Euro.
Here is a good story about it>http://www.bloomberg.com/bbn/topsum.html?s=AOcZZfxXiR2lsbGV0 It seems very, very stupid of them not to have forseen the EURO collapse, and not hedge against the risk. I mean, for goodness sake, I hedge positions all the time. They call it VAR, (value at risk) in the banking business. Of course, they (banks) also funded the idiots who ran Global Capital Mismanagement, without any VAR studies, but the FED bailed them out anyway.
I saw James Dines Friday nite on PBS, and his thoughts on the EURO are real simple, he said, and I quote "The central bank moron's should now realize that when you sell most of the gold backing your currency, this is what you end up with" I tend to agree, since I have made big coin shorting the pos EURO fantasy :)
I also don't see things like the QQQ & NDX coming back large anytime soon, I see money flowing into the mid-cap stocks, where there is a margin of safety, like no 300 pe ratios, and if that in fact does happen, I can see some of that money spilling over into some of my micro-cap dogs, if only because many are so very close to book value, so you get a double margin of safety, and I also think the money coming in has the potential to really jack some of them big.
The very fact that they are so ill-liquid will be of big benefit to those that get in when no one is looking, Imo.. |
