>>Anyone else think this stock will continue upwards after the split?
I think Yahoo is one of the great stocks for the next few years, but anything can happen near-term.
The flagging bond market is the reason I exited the market yesterday morning. Yields have increased daily this week after the Fed left short rates unchanged Monday, and bond yields gapped up today...not a healthy scenario, particulary in response to such good news.
Small stocks have enjoyed a spectacular rise since the April lows, and the S&P 500 is overvalued by about 12% relative to bonds, and bonds are declining. I think the bond market will call the tune now.
Meanwhile money keeps pouring into stock mutual funds, and managers are putting it to work right away out of fear of underperformance. We have a liquidity-driven situation here, but if money is chasing stocks in general simply because they're going up, something bad is going to happen. The only questions are when and how bad.
It isn't fun to watch stocks like Cymer and Siebel, two of my favorites, move higher since I sold them yesterday, but overall my portfolio would have been down both yesterday and today had I kept it all. That wasn't the case last week when the averages were coming unglued. It was up each day throughout that decline, and exploded upward Wednesday. I sold on the open Thursday when bonds headed lower.
I stuck my toe in the water and bought some October in-the-money put options of Charles Schwab today with 1% of my money. The rest is in cash.
Today's rebound to close nearly unchanged was futures-driven. The exact thing happened on the second day of the break that began the cyclical bear market in 1990. Time will tell if we're facing a similar decline this year, but one thing is for sure as far as I'm concerned...we're not at a bottom. |
