You’re very concerned about domestic economic growth. After all, rates are so low; it must mean something.
As a bear, I’d like for you to explain to me, the layman, exactly what’s so bad about this investable environment.
Let’s go over the boolish check-list.
1. Low rates
2. Cheap energy
3. Cheap commodities
4. The economy is producing 250k jobs per month.
5. The market is at new highs.
6. Innovation in tech/biotech is booming.
7. Cash levels are at new highs.
8. Earnings are at new highs.
Ok, now it’s your turn.
You can cite high levels of sovereign debt all you want. The simple fact of the matter is the market doesn’t care, as evidenced by rates.
Futures are soft this morning and BABA is pulling a FB on their investors. I fully expect BABA to flush out into the $60’s before recovering. Using Exodus (the second iteration of The PPT), I am able to run models, in an effort to find the ideal traits in a stock portfolio to reach maximum returns. I have no interest sharing my findings with the likes of you, since giving it to you would be a waste. But, I will tell you this: had you simply avoided Chinese stocks, as a whole, over the past year, 2, 3, 4 years etc, your investment returns would be markedly higher.
While it’s true, Chinese stocks offer great trading opportunities, on occasion. Nevertheless, it’s not worth the hassle. Say no to the burrito, every single time.
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NDRM?
Still long
Jim Cramer said yesterday sentiment was too frothy and I believe BlueStar was nodding his head in time.
* Margin compression (and export weakness) from stronger dollar.
* Margin compression from higher labor costs
—-> Is it possible to have strong real economic growth but without flowing into profits?
* The market is at all-time highs… especially if you don’t believe in the Fed model.
* Fed lift-off and/or balance-sheet unwind.
* Potential Chinese hard landing incoming.
* Fallout and ripple effects from the oil/energy sector + decreased CAPEX.
* longer replacement cycles on AAPL products — or lack of innovation. Yes, AAPL matters for the earnings figures.
Not that I’m bearish, but if China breaks, we all break.
All legitimate concerns. Well done
Let us all congratulate President Underwood on the success of his America Works program.
EXCELLENT!
IFONs are selling like hotcakes!
Better play a strangle strategy Fly Guy(s) NoHomo, EatPizza
Fly, what are your thoughts on IFON after the ER?
Maybe you should have held off on the all-clear one more day. But thanks for the BABA shout out.
IFON. hahaha. I forgot I even held it. thought that moneys was lost forever into the third world. Unexpected good times this morning. Thanks to the Fly circa 2013
Lol IFON