Revolution Links to what I’m reading and thinking about today…
Here are some Revolution Links to what I’m reading and thinking about today.
Value Investing and Financials – David Merkel is an old mentor and investor of mine. He also happens to be the best value investor I know and he’s saying that the financials are not value stocks despite their ongoing crashing. He’s also underscoring something very important here about the financials — “a lot of the outperformance of financials stemmed from the willingness of the Fed to engage in a reckless monetary policy”. I’ve been short the financials including Wells Fargo since early this year because this stuff is all finally coming home to roost.
Summarizing RIMM – New, updated RIMM analysis from the best tech trader I know. His summary after last night’s earnings report: “There are plenty of reasons in RIMM’s report to warrant even further selling in the shares. We could be seeing new lows for the year tomorrow after the sellsiders slash their estimates and forecasts for the PlayBook offering. I think the PlayBook is a definite goner.” I agree with pretty much everything he writes in the article.
Did Donald Trump call the peak in gold? – A couple years ago when oil had spiked and was at $130 or so, I once confidently bet Donald Trump Jr on national TV that oil would see the $30s before it’d see $150. In fact, his brazen bullishness on the commodity at that point emboldened me in a contrarianism kind of way. Oil peaked at $147 and subsequently dropped to $35 and I won that bet. You know what the payoff was supposed to be? His inheritance against mine. He hasn’t tracked me down to pay off. Anyway, I’d rather see Donald Trump saying gold is going to $10,000 an ounce instead of being in my camp as a gold bear. I am still waiting to re-enter my GLD short. Now I’ll probably wait longer. Sigh.
BofA, JPMorgan Fail to Make Fannie Mae Grade for Loan Servicing – Like I said, I’m short the financials, especially targeting the TBTF banks like these guys who can’t even do the job they say they’re doing. And when they do do their “loan servicing job”, it’s often full of robosignatures and title-chain nightmares. BofA should declare bankruptcy instead of laying off 30,000 people to prop up cash flows and supposed profits for the near-term so its management can continue looting before they eventually collapse again under the weight of their horrid balance sheet which no amount of layoffs can fix anyway.
Economists Who Are Always ‘Surprised’ Should Re-Think Their Models and Assumptions – This would be hilarious if it weren’t so damn tragically true. “Surprised” is another word for “dead wrong”. Should we all be “surprised” these incompetent idiots at the Fed and Treasury and other higher ups in the Republican/Democrat regime keep their jobs? Being surprised constantly…it’s like the Apple analysts who are always “surprised” that Apple can sustain this torrid growth. There will be people who will be surprised that Google’s Android has crossed the one-billion units sold mark sometime in the next few years.
