Thoughts on the Fed’s Actions
It seems to me that all the fuss yesterday about the Fed’s $200 billion dollar “loan” – I’m sure you’ve all heard about it so I’ll skip the details – was completely uncalled for. Since when does the Fed pumping more money into the economy not equal an increase in inflation? Think about it – […]
In the news AND suggested reading
In the WSJ today there was an interesting article regarding P/E ratios and using them to determine appropriate buying and selling opportunities. The article was on C1 and the author contended that although the S&P is trading at 13.2 times expected earnings, this number is likely to drop. I find myself hoping that the author […]
Glance at the Dow
I decided to put together a list of the Dow Jones Industrial Average and see how our valuation formula values each component. I’ve listed the result below. I also ran the test for each component to determine if it would pass our list of guidelines for the defensive and enterprising investors and calculated how the […]
Recession Ahead = Time to Sell? No Way!
With the recent jobs report, it is clear that a recession is either extremely likely at some point in 2008 or it is already here. There’s no more denying it – only dealing with it. And most people out there today are telling you to exit the stock market before you lose and put your […]
Follow up to $100 Oil post
Yesterday I wrote a response to an opinion article in the Wall Street Journal regarding $100 oil. Later in the day, one of our readers, AaronH, made some good points in a comment. Here is an excerpt of what Aaron pointed out: “I have to disagree with the above strongly. Price here is not due to […]
$100 Oil due to False Speculation
Today there is a very good opinion article in the Wall Street Journal. The article is titled The World has Plenty of Oil and was written by Mr. Nansen Saleri, president and CEO of Quantum Resevoir Impact in Houston. Mr. Saleri essentially says that we are nowhere near running out of oil and the ongoing concerns […]
The Market This Week
Market Snapshot Dow                      12,266.39           -315.79           -2.51% Nasdaq                2,271.48        -60.09            -2.58% S&P 500         1,330.63        -37.05             -2.71% Monday saw Wall Street move higher after the S&P confirmed that they would keep their AAA rating for Ambac Financial […]
Bear Stearns RIP 1923-2008
This evening (3/16/08) it is being reported that JPMorgan will be purchasing the struggling investment bank for $2 a share. Yes, that is correct I did not forget a digit, the purchase price was $2 when this stock was trading in excess of $150 a share this time last year. Absolutely shocking to see by […]