Bad news for stocks

From the big Microsoft fine to bad news for Haliburton there is certainly reason to be bearish on stocks short term. Rising oil and gold prices again remind us of the need to diversify. If all my money were in tech stocks I’d be a lot more worried than I am now. Having money in CEF and other gold plays sure seems like a good move to me.

8 Responses to “Bad news for stocks”

  1. Raj Chanani says:

    I tend to agree. If you look at the SP500 and the Nasdaq composite indexes, you will notice that the market is virtually unchanged in the last 5 years. In My openion, Fair valuation for the Nasdaq out 12 to 18 months is at 1000 to 1500.

  2. Money Supply says:

    Money Supply
    —————
    USA M2 7 Trillion Dollars, 8% yearly growth
    EuroArea M3 8 Trillion Euros, 9% yearly growth
    China M2 22 Trillion Yuan, 18% yearly growth
    India M3 35 Trillion Rupees, 19% yearly growth
    Mexico M4 10 Trillion Peso, ??

    M2, M3, M4 are esentially the same, simply organized slightly differently.

  3. Economics 201 says:

    How does the capitalization keep increasing?

    1) Due to more money being printed.
    2) Resulting in larger salaries.
    3) Resulting in higher cost for a given product.
    4) Resulting in higher revenue stream.
    5) Resulting in larger profits.
    6) Resulting in larger capitalization.
    7) Resulting in inflation.

  4. Raj Chanani says:

    What is your strategy?

    40% Long
    30% Short
    30% Cash

    50% Long
    40% Short
    10% Cash

  5. Market says:

    What should we do about Boston Scientific?

    1) We should write off $20 billion dollars in Intangible Assets.
    2) Do a 10 to 1 reverse stock split.
    3) Issue 50 Million shares of the new better priced stock.
    4) Pay back 2 Billion in debt.
    5) Keep up the good work.

  6. Market says:

    What should we do with the Sun Microsystems (JAVA) issue?

    1) Do a 10 to 1 reverse stock split.
    2) Acquire Red Hat corp.
    3) Acquire Novell corp.
    4) Write off 1 Billion in Intangible Assets.
    5) Issue 50 million shares of the new better priced stock.
    6) Pay back 1 Billion in debt.
    7) Do not give them the 95% solution for the 70% price.

    100% solution –>> $ 1,000,000,000
    95% solution –>> $ 100,000,000
    90% solution –>> $ 10,000,000
    70% solution –>> $ 1,000,000
    A solution –>> $ 10,000

  7. Daytrader says:

    How about a 100 to 1 reverse stock split on Citigroup. It is still worth billions just the per share price is not much. ($250/ Sh)

    How about a 50 to 1 reverse stock split on Bank of America. It is still worth billions just the per share price is not much. ($200/ Sh)

    How about a 20 to 1 revers stock split on JP Morgan and co. It is still worth billions just the per share price is not much. ($400/ sh)

  8. Market says:

    What do you think of Citigroup? I think they will be ok.

    They need to do the following.

    1) 100 to 1 reverse split.
    2) Write off 500 billion in bad debt, goodwill, intangible assets.
    3) Issue 1000 million shares of the new $250/ share priced stock.
    4) Fire 25% of the employee base.
    5) Hire 100,000 new people via the job fair.

    We feel that the job fair is very incridibly fair. You should respect yourself, you work hard and the banking industry is very important to us.