This thread is a running commentary of today's market moves, reports, and surprises.
Futures are somewhat tame so far this morning. They have been on both sides of the fence. Oil prices seem to be hot topic. Energy sector has been clobbered with no end in site. In the meantime, bonds are enjoying the ride.
As part of my profit sweeping, I moved some into TWUSX. by the time I am done I should be between 55-60% equities.
It will be interesting to see how the airline stocks react. The ebola factor is a emotional one. In the US, the other options for travel are less enticing. Greyhound anyone? Trains do have their allure but the time to go cross country is a killer, plus you could probably fly for a much cheaper price.
As I mentioned in another thread, if another ebola affected person pops up, things could get very grim.
All the best to everyone.
Comments
Dow -151
SP -18.80
Nas -42.25
Trains are a wonderful way to travel and I love trains in general, but you're still stuck in an enclosed space and for even longer (although admittedly, air not recirculated and it makes stops.) Amtrak isn't actually that expensive but it really depends on how far/where to/from. Amtrak USED to have unbelievable deals on their website for non-refundable tickets, but unfortunately they did away with that.
Anyways, got a few dividends today, will get a bunch more before month end. Basically, turning into a dividend machine where I get a number of dividends throughout every month has really made days like yesterday much less stressful. I'm not saying this is for everyone, I'm not saying it's the only way to invest, but just for me - yes, yesterday wasn't fun, but I didn't panic and added to a few things. Felt a lot calmer than I would have used to on a day where the market was -450 at one point.
Days like yesterday are good in a way for the buy and hold investor from the standpoint of it really makes you evaluate how strongly you feel about a position.
A few years back I had a friend who rode the train from Albany to Seattle. Their ticket was cheap but they didn't have a sleeper. I couldn't do that. They also brought a lot of food on board they had gotten previously. They are one meal each day from the train service so as to have one hot meal.
First thing we did after picking them up at the station was go to a restaurant for a big meal.
The other issue that people aren't focusing on is the fact that Greece is breaking down (to put it lightly) again.
Greece:
https://twitter.com/ReutersJamie/status/522687721488539648/photo/1
But Draghi seems to get it, I think the ECB will act soon. If I were a hedge fund, I'd be buying Greek debt.
The $64 trillion question is if Merkel finally gets that Germany can't keep freeriding on an undervalued euro (for German industry) that gives them an export boom at the rest of the world's expense.
It didn't have much impact on the futures though.
Not sure these are rational times, but it does seem to help explain the pull back from what I had considered fair value levels, which I know too is a matter of endless debate.
Just need something to help explain how a company that reports one of best quarters ever, like Alcoa, predicts strong continued growth, receives strong analyst backing/affirmation, etc, etc can still drop.
I believe too that it's market first, then sector, then company that moves prices. So, even strong companies fall when market has decided to head south.
Again, just me trying to rationalize what is happening the past month of so.
Low unemployment, stronger dollar, low energy, supportive fed, strong earnings, available credit, strong balance sheets, low defaults...and yet, we're off 8%.
Just weird.
BAC reports 0.01 per share loss after 0.43 per share DoJ settlement.
Eventually, that 0.43 expense will disappear, putting BAC in position to earn $1.68 per share per year profit. Which translates to $25 share price at 15 times earnings.
The company just continues to get stronger and stronger. Moynihan is another CEO now chairman I really like, along with Kleinfeld at Alcoa.
But the stock dropped nearly 6% to close in $15s.
I had decided to buy more yesterday if it dropped under $15, which is my last purchase price. Still have that plan in place.
Just crazy.
I do think there is the question of how much of this is buybacks, as well. I do think if this is the start of a larger downturn it will be revealed fairly quickly which companies took advantage of this period of easy monetary policy smartly to strengthen their balance sheet and diversify their business (among other tactics) and which did not.
Wonder what'll happen in the next five minutes.
It's a way for me to up my beta, keep my powder dry, and reduce the number of small cap funds I have to two (HUSIX and BRUSX.)