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Monday, August 23, 2010

Market Thought...

The title is blank on purpose. I have nothing to say because I already gave my two-cents (and still very much believe) in the 'think a little' Market Thought post.

I am a fan of Cramer tonight because I really like his rant about investor interest. (Lost Interest?) I think it hits the nail on the head, and is the very reason why price-to-earnings ratios are sooooooo low. Even for multi-nationals that are exposed to a growing global economy. Which means their eps growth will not be hit.

(I especially love his idea about the 401K. I personally do not have a 401k for the very reason that I can not create my own basket of stocks. It pisses me off that I do not get my company's contribution, but at the end of the day I out perform a 401k w/contributions.)

I see the frustration in friends and family when they ask me how my trading is doing, and astonished to hear I am doing 'pretty good'. (I am easy on the performance adjectives because I know its a tough tape for everyone, even though i am doing really well.)

My portfolios have declined with the current tape. Am I annoyed? Yeah. Does it make me lose interest? No. I have rebuilt a cash position on the way up. (Made no secret of the heavy long position on the way down as we previously tested the SP500 320SMA.) Didn't go short to protect the position I held on the way up, which has me annoyed, because I missed it. But now I am about to go heavy back into this market.


Because IBM trading at an 11.95 trailing PE, and forward PE of 10.23, while its projected to grow eps at 15%, with a very large chuck of its eps via virtualization/cloud computing and growing very nicely.

When I suggest a name like IBM to these frustrated people they look at me with a puzzled 'or u fucken serious' expression. They are frustrated as hell, yet winners are staring at them in the face, and they are too ill informed and not willing to except such truths. And then I wonder, who the fuck are these people depending as their financial advisers?!?

Anyway, I really do think the 'powers that be' NEED to listen to Cramer's rant.

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