Taby,
Otherwise it would be a self-perpetuating-death spiral:
Russia is down (fundamental -- a shift back to Communism is not necessarily good for public equities .... or at least that is what they taught me in my Alternative Paradigm course several years ago ... in a much simpler time ... )
In response: The US markets are in TURMOIL (the media seems to like that word) ... Then Japan is down because of the US TURMOIL (it does have a nice ring to it) ...
Then the US is down because Japan was down ... Then CNBC starts running specials on how great defensive plays like PFE and MRK are here, without mentioning valuation. ...
Then Japan is down because og the US ... Then the US is down because Japan was down ... Then CNBC starts running specials on how perfect an investment strategy is buying ADI converts [and no one but Bonnie has figured this out!] You have have complete downside protection...at $103, the worst that can happen is that you lose $3...but you get the dividend...and if the stock goes to:
$30, you will get a 37% return before the dividend...
$40, you will get a 83% return before the dividend...
$50, you will get a 128% return before the dividend...
$150, you will get a 584% return before the dividend...
$2050, you will get a 9254% return before the dividend...
Like, isn't that great? Everyone should be doing it! On average I think I will earn 128%!!! Neat'O. No risk. Infinite upside!!! I knew that CNBC would make me a wealthy man! *
Then the US is down because Japan was down ... Then CNBC starts running specials on how great an investment the 30 year Treasury is at sub 5.4% (so good that Uncle Warren dumped his Zero's last quarter)... Then Japan is down because of the US ...
Then the US is down because Japan was down ... Then CNBC starts running specials on how much of a genius Michael Metz of OPCo is because he was "right" about the market (after 5 years)... Then Japan is down because of the US ...
Then the US is down because Japan was down ... Then CNBC starts running specials on how great the pharmacy stocks are these levels....predictable earnings...superior management teams...no pricing pressure...the US is completely under-stored...yeah, throw the lure of continued consolidation...yeah, Genovese Drug Stores GDXa (they must be big, they are all over Long Island) buys Longs then rolls up Walgreens...then Rite Aid...then CVS...then Tiffany's (they synergies are so obvious)...Then Japan is down because of the US ...
Then the US is down because Japan was down ... Then CNBC starts running specials on how great GE is at these depressed levels, without mentioning the "it-is-the-parent-company-of-this-network-thingy"...Then Japan is down because of the US ...
--Duker
* Do not get me wrong, ADI is getting more interesting by the day. |
