A good morning tape as traders ignore thousands and thousands of layoffs.
The herd mentality, of which I am a great subscriber, dictates that we get in when others do and get out when others do. To lead the charge, rather than follow, provides the greatest reward but the greatest risk.
I am a follower with positions in PALM and EWZ-the Brazil ETF.
As unemployment nears 10% I would think credit card defaults would escalate. This isn’t a new idea, of course, but am not sure it has fully played out. Although Capital One (COF) trades under $20/sh, after swooning from its 52-week high of $63.50, it may decline further. And the $1.50 dividend (7.7%) must be viewed with circumspect.
The Education stocks, about which I wrote on January 22nd, got slammed over the weekend by Mike Santolli in Barron’s. In my comments I suggested the stocks looked “toppy”. Should you be a believer in the sector today could be a good entry point. DeVry reports on the 27th and this could be catalyst.
NuStar (NS, NSH) reported very strong earnings this morning. I have written about this asphalt refiner and marketer before. It would appear the high yield (9%+) has earnings protection. I will be on the conference call at 11am. 800-642-1687, pass code 80060009.
There is a heck of a computer virus going around, already attacking 15 million PCs. Be sure you computer has the October patch, available at Microsoft updates.
