- Despite disappointing earnings and guidance from HP and in the face of the jobs report, futures point to a strong opening.
- Oil is up, gold is down, modestly.
- As preached here consistently, buy-n-hold investing is a dead strategy. To subscribe to this technique is to believe that the economy will soon revive, peace will prevail, Washington knows what it is doing, the SEC is a stable supervisory entity, the Treasury will act with wisdom, and the Fed is all knowing.
- In addition, hope is not a reliable strategy. So, for the investor who has grown up with ever increasing stock prices it is time to face reality. We may be subjected to years of mediocre equity performance. That will lead to significant changes in purchasing power and life style.
- Which of us hasn’t wondered, when driving through a large city filled with hundreds of shopping centers and strip malls; who is going to buy all this crap? And, who needs it?
- Academic studies have shown that market timing doesn’t work. As soon a one takes money out of the market it explodes to the upside. Supposedly, one has to be in to win. Well, I am not sure those studies have been updated for the last decade. Taking your money out of the market ten years ago, two years ago, a year ago, last month, would have been the smart thing to do.
- So, I will try to catch the waves with swing trades (buying sectors, the market or individual shares for a few days, maybe a week) or day trading. I will try to take what the market can give me. Should an up trend be established I will continue to add to positions. I would welcome the time when index funds and/or “blue chips” can be bought and held. Until then I will pick my spots.
- CVS reported a heckuva good quarter and is up a point, pre-market. Am wondering if the earnings report and company guidance will be enough to get the stock over $30.
The wind and rain have passed us here in Southeastern North Carolina and I look forward to a terrific day. Hope you have one too!
