iBankCoin

Rush to 2011

A record amount of mutual funds are underpeforming this market, due to poor market timing. Go read the data. Because of this, I suspect there will be a rush to conform, over the next two weeks. The market should end a strong note, then sell off in early 2011. By the way, the iBC crew will be issuing their joint 2011 predictions within two weeks time. Here were last year’s predictions for 2010.

Again, in my opinion, fund managers will look to position in names that have worked in 2010; but not ridiculous shit like NFLX. Names like DMND, WRLD and PFCB may attract some buyers. By the way, I have the best screen known to mankind, regarding these year end plays, over in The PPT.

Should the market sell off today, I will buy into the dip. Despite the very high readings in The PPT, I believe there are greater forces at play here that lend to the artificial nature of this bull run. Should we be gunning higher, amidst this Euro-shit? Of course not. However, since when does this market adhere to laws of reason?

Do not underestimate the power of herd thinking. That’s exactly what will power this market forward, going into 2011.

NOTE: PEP buying out WBD is incredibly bullish for beverage plays.

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28 comments

  1. TheV.King

    LMLP…And the Fly is not god.

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  2. A Monkey with a Magic Fucking 8 Ball
    A Monkey with a Magic Fucking 8 Ball

    Rush 2012!

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  3. Le Indie Rotary Phone
    Le Indie Rotary Phone

    Bevie plays like cot?

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  4. Le Indie Rotary Phone
    Le Indie Rotary Phone

    Thats the spirit!

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  5. Jakegint

    Insane for PEP to purchase in a country on a demographic death-march, but I agree it’s great for consumables on the whole, and emerging markets specifically.

    What is the name of that Brazilian Beer Co? Brahma?

    _____

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    • The Fly

      I know. The WBD purchase seems very, very risky.

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    • WTF

      Demographics?! Look at consumption of juices per capita. It’s on the rise with potential to close the gap vs. Europe. Hardly a death-march market, especially for PEP, which diversifies and entrenches against KO.

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      • The Fly

        70% dairy.

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        • WTF

          True.
          Consumption gap of milk is about 50% of recommended volume per year. Shall the incomes return to pre-crisis levels, sales will go up as well. Point is population growth rate is only -0.47%, whereas increase of consumption far outstrips this decline.

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        • TraderCaddy

          Maybe they should buy that Chinese Cow gem Broker A bought several years ago.
          That would be American Dairy which changed it’s name to Feihe Dairy (ADY).
          Can you imagine what is in their infant formula?

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        • Cascadian

          The woman from India may be able to make it work in Russia….

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    • The_Real_Hmmm

      The birth rate of Russia rose from its lowest point of 8.27 births per 1000 people in 1999 to 12.4 per 1000 in 2009. Likewise, the fertility rate rose from its lowest point of 1.16 in 1999 to 1.54 in 2009. 2007 marked the highest growth in birth rates that the country had seen in 25 years, and 2009 marked the highest total birth rate since 1991. For comparison, the US birth rate in 2009 was 13.8 per 1000.

      After Gorbachev’s anti-alcohol campaign, alcohol related deaths did begin to wane.

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      • WTF

        Err, Medvedev’s?

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        • The_Real_Hmmm

          According to the Russian demographic publication Demoscope, the rising male death rate was a long-term trend from 1960 to 2005. The only significant reversion of the trend was caused by Mikhail Gorbachev’s anti-alcohol campaign, but its effect was only temporary.

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          • WTF

            OK. His campaign sucked. He destroyed vineyards in Moldova (and some other regions, don’t remember now), and the general public switched over to some more hazardous moonlights, which didn’t add to the health of population.

            I actually thought you were referring to a more recent 2010 campaign of Medevedev–was surprised that it showed positive results so fast.

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  6. Rand

    Do they make beer from spit? Saw that on the tube over the holiday. Makes me shudder, ugh.

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  7. Yogi & Boo Boo

    Should be an interesting end of the year to say the least.

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  8. Septic Tanker

    BUY THE FUCKING DIP>>>>>> HAHAHAHAHAHAH

    http://www.youtube.com/watch?v=jllJ-HeErjU

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  9. Spooky

    Great post, Fly.

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  10. noodle

    NFLX IS CHEAP HERE IMO

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