Monday, November 27, 2006
Sector Spotlight: U.S. Dollar
According to these fuckers, we will all need wheelbarrows of dollars to buy bread and iPods. The U.S. economy is built on pig shit and its stock markets are 90% overvalued.
Fucking, fucker idiots.
Aside from the dollar, WMT is leading the Retailers lower, mainly because they suck. Additionally, Tech stocks are trading lower, with the exception of AAPL, as investors fear this years holiday shopping will not impress.
WMT is not reason to sell. The economy is chugging along just fine and the mobs at BBY are as dense as ever. If we trade lower for a few sessions, I will be delighted to buy cheaper stock.
For now, I remain bullish and I laugh and spit at the doomsdayers.
So this is a day to just wait and try to only look at one's short positions? Wish I'd not chickened out on my ANF short - get back in here?
I suppose it would have been nice to short ANF-- but I would be scared initiating one now. Maybe too late.
Although I think the selling is overdone, I can't help but wonder: Is this the beginning of a big sell-off?
Don't mind me. I second guess myself all the time.
Don't worry about WMT. They suck. They're only about 20% of the retail economy. Joe Sixpack is probably shopping at Tiffanys. The problems at WMT are specific to them. Right. OK.
And don't worry that corporate profit margins are as high as they've been in 50 years. It's a given margins will continue to expand and drive stock prices higher.
And don't worry that the market has gone straight up for 3 months. The market multiple can only expand from here. You'll likely never get a chance to buy 'em lower.
However, don't get fooled into believing WMT represents the "average" american-- it doesn't.
Most credit card bearing, starbucks drinkin', mini-ceasar wouldn't be caught dead in that helltrap.
As for autos:
Only American cars are in recession-- due to poor quality.
Finally, housing is in recession. However, I learned a lesson over and over again, which is: In an efficient economy, one asset class will replace another.
The cycle repeats itself.
The global economy is a juggernaut fueled by population growth, the greed/fear engine, and human nature. Bottom line: ride the waves or get out of the way.
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