Mike, I have asked Bill Fleckenstein to join us or take a peek at us here on SI. He said he is going out of country and will check back when he is back. A couple of quotes from today's piece from Bill F.:
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'What, me worry?' dept.
There is real fear in emerging
markets, and in Asia, but Alfred E. Newman still seems to strut
his stuff at the NYSE. Buying continued all day in PC stocks.
God knows what sort of lunacy is convincing people the PC
stocks are going to be okay. Maybe they think when Eckhard
and Earl, the CFO and CEO of Compaq (CPQ), unveil their new
channel-stuffing model tonight it will make the PC world get
better. The PC, lest we forget, is the biggest commodity in
technology, so I would think those stocks will get slaughtered one
of these days as well.
Interestingly enough, Intel was acting pretty good. I expect Intel
(INTC) to pre-announce some time in the next couple of weeks
because business is awful there. The mighty Internet stocks were
fairly strong, led by amazing Amazon.com (AMZN). The stock
jumped 8-3/8 today, which means it has run almost 50 percent in
the last four or five trading sessions. There's obviously a fair
amount of lunacy still taking place, although I expect most of the
strength in Amazon.com is a function of short covering.
The bank stocks, however, were weak today, dropping a
percent--even though the bonds rose 5/8 of a dollar. It was a
very, very ugly day for the U.S. stock market and I think,
unfortunately, it's a harbinger of things to come.
As I see it...
People have gotten away with a lot of unsound investment
strategies or schemes in the last three to five years that are
headed for trouble. The whole notion of inventing a concept to
justify buying highly speculative stocks is ridiculous. Crazy ideas
like, "All the bad news is reflected in the stock price and now we
can buy," or "It looks good on the chart," or stock splits, have
nothing to do with investing. Almost all these schemes and many
others have worked until now, but they are soon going to start
costing people money.
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