iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,471 Blog Posts

Grandpa is Winning

As you know, there are two sides to “The Fly”, as presently represented by his portfolio. On one side is the social networking ‘risk demon’, who feeds off the scalps of bears and enjoys to kick elderly men down subways staircases. On the other hand, 50% of his portfolio is wrapped up in “Grandpa stocks,” the sort of portfolio that makes you doze off in front of the television while watching The Price is Right.

Today’s market calamity is a Tale of Two portfolios for me. There is AAPL, YELP, WNR, CPST, ANR, VCLK and NXPI in one corner, getting their fucking dicks chopped off. And then there is GIS, KMB, LNCE, WM, PEP–totally not giving a shit about Greek communism or euro collapse.

It was outlined earlier this month, based upon the tips given from urinal shadows and seasonality trends provided by the engine that could, inside of The PPT: grandpa stocks tend to outperform in the month of May.

It is in my nature to take on risk. That’s what I do, for good and for worse. However, I am eternally grateful that I decided against my worser judgement and put half of my assets in those stocks. While I am still losing money, it could be much worse.

Where do we go from here?

I believe you start nibbling today. Spanish and Italian yields are going down, not up, leading me to believe the market is accepting the prospect that Greece will leave the euro. Once they do that, both Italy and Spain will be protected by a euorbond, leaving Greece to fuck themselves and create more ruins, sending the markets to new highs.

That’s my 2 cents.

NOTE: I sold out of P

http://www.youtube.com/watch?v=VPhroQLzI1o

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29 comments

  1. goose

    when did “nibbling” become part of the accepted nomenclature for traders?

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  2. Mr. Cain Thaler
    Mr. Cain Thaler

    You’re probably right in that Greece leaving the euro will cause markets to ramp higher.

    But why would Germany agree to a euro bond for the benefit of Spain or Italy, when they wouldn’t agree to one for Spain, Italy, or Greece.

    Seems Greece is so small, their presence probably isn’t what is deterring Germany.

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    • theedge111

      Its the CDS triggers that could be set off by a Greek default that makes the markets nervous.

      Also, who in the hell would be stupid enough to buy a Eurobond with the inflation risk thats coming as the ECB and the Fed are forced to print more money?

      Just my thoughts. Crazy market.

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    • madrid

      Germany needs Italy and Spain (to buy their exports). I think Germany and just about everyone else is fed up with the Greeks and are coming to the realization that they are a basket case. FUBAR. Rajoy is trying to get Spain back on track and at least Berlusconi is gone. Just my two pesetas/lire/drachmas.

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      • RightlySo

        And Germany being an export nation needs a relatively weak currency to maintain there competitive edge. A German led Northern European Union would have a much stronger currency relative the current value of the Euro.

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      • Mr. Cain Thaler
        Mr. Cain Thaler

        Germany needs to pay/finance Italy/Spain to buy their exports…?

        Come on.

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        • RightlySo

          Sure. Why is that hard to believe? China does the same thing for us, no?

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          • Mr. Cain Thaler
            Mr. Cain Thaler

            China also doesn’t care whether or not their people plunge into total poverty, as long as the Party maintains power.

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          • RightlySo

            Nonsense. They’re power is completely dependant upon keeping their populace employed and the economy growing. Where were you in ’09 when the Chinese found religion?

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  3. locobbb

    speaking of getting their fucking dicks chopped off, MAKO… ouch!

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  4. Cascadian

    Greece could be cut off, the Germans could pay the old greek debt preserving the European Union, then let Greece descend into their own depths and be an example of a spendthrift nation.

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  5. Trading_Nymph

    Only question is whether BoE will QE this week. IMHO it is no….Sandwich?

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  6. noodleboy

    This is unrelated :
    The dollar will rally hard in 2013. The dollar will do nothing for the remainder of 2012.

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  7. donker

    I AM BUYING EVERY 3-5% DOWN IN YELP ALL THE WAY DOWN TO 0 AND I ADVISE U TO DOT THE SAME

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  8. jason

    reversal underway fools

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  9. OG

    Bad timing on P. I exited last week too.

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  10. Cascadian

    Grandpa is short?

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  11. Mr. President

    Who wants to bet that YELP will be above $23 within one week?

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    • Largebill

      Not sure if I would narrow that bet down to one week, but I am making the bet that YELP is going higher sometime in the near future.

      Also, coming off five consecutive down days, I expect we’ll see a healthy bounce Wednesday or Thursday as people start to see considerable value in sold off stocks.

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