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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (31039)	5/29/2008 12:01:47 AM
From: Ryan Hess	Read Replies (4) \| Respond to of 78704

Madherry, Interesting strategy. Can I ask which bond fund does that? I took a hit with Citi this year but got out before it went to its current price. However, I doubled my position which is now reasonable size in WFC. Apparently a mistake as it has declined from just over $30 buy price reasonably. I'm thinking it may be prudent to pare that position back now. Financials are tough. I wonder why Buffett or his surrogate trust WFC as opposed to others; is it based on some insight we don't have publicly? I know in So Cal they are not free from being in the position of other banks -- though I suppose to lesser extent, with the repos. Positions in stocks like APA and XOM, CAT have held the port together but I"m also thinking that a fair amount of the $130+ price /bbl of crude is due to speculation rather than real fundamentals - not to mention other commodities. But when does that bubble burst? I think its a tough environment as I see stagflation coming on stronger. As you mention, rates may have to start going up, growth more sanguine worldwide, and global inflation perhaps in the 5% range. Tough environment to eek out any real returns...costs for items such as power plants increasing near double digits over the past five years! * I continue to find Gross and his counterparts writing of the monthly investment outlooks to be insightful. The WSJ front page article from today on Bear's collapse amazing. More pain to be endured as there are still reasonable disconnects out there. i.e. Chinese currency. I submit two interesting links Testimony of. Michael W. Masters hsgac.senate.gov And Bill Gross' most recent IO -- previous versions also worth reading including McCully on the Minsky Moments of late pimco.com -RTH * online.wsj.com