Revolution Investing must-reads into the weekend
Here are some headlines and trends that every investor should be thinking about into this weekend.
U.S. Stocks Hit by J.P. Morgan and Can The Market Muster A Convincing Bounce? – It’s fried-day and I sure know a lot of traders and investors who truly feel fried now. The markets are set up for another ugly open this morning and it looks like they’ll be opening at 3 month lows. As you guys know I’ve been waiting to put much money back to work and I plan on putting some more orders in this morning, including getting more aggressive by using some call options in addition to stepping up the aggression in my common stock purchases too.
Is The JP Morgan Trading Loss Bombshell an Isolated One Day Event? and Costly trading loss for J.P. Morgan Chase and Dimon and How Wall Street Killed Financial Reform and Wall Street’s immunity – Taxpayers are providing the capital that JP Morgan is trying to say that the bank is “trading for its own account”. These guys get to keep all the profits when they make money on these trades using taxpayer funds provided to JPM at 0% interest by the Republican/Democrat Regime’s Federal Reserve. But when JP Morgan loses money like this, they know that their shareholders and lenders are protected because they’re Too Big Too Fail. Doesn’t it feel like these TBTF banks and the idiots who take billions of dollars out of the company in bonuses and payouts every year are something out of the Soviet Union days? JP Morgan Chase is a socialist or even communist entity. This is what Occupy Wall Street gets and what Jamie Dimon doesn’t get.
Bond market madness – The biggest problem with all of money management today is that the entire industry has become so driven by such convoluted regulations and rules that keep you from being able to control your money (how many mutual fund options do you really have in your IRA…how “bond” options do you have in your brokerage account? How much money is forced into these rigid money management firms? Forced allocation into certain assets on a personal level, not to mention how the government can force the TBTF banks to buy Treasuries in the name of “safe reserves”, is what is driving all bond markets, including the US and EU government bond markets in 2011. That never ends well. When this bubble pops (which could be another few years, to be sure!), it’s gonna pop ugly.
EU: Signs of Recovery, Risks Remain vs. Longer-term risks remain despite the euro’s rally – Broken record, anyone? Broken record, anyone? Broken record, any…You’ll have to click through on each headline to see which one is from today and which one is from two years ago. Ignore the noise from the EU, you got it yet?
Facebook IPO Said to Get Weaker-Than-Forecast Demand and Facebook IPO Overvalued at $96 Billion in Global Poll and Facebook IPO: Investors should wait – I remain of the thinking that if you can buy the stock when it comes public at less than a $100 billion valuation, then you take that chance. If it comes public and starts trading near $200 billion or something though, you’ll want to run for the hills. That is, I’d be a buyer of FB at less than $35 and I’d be a seller at $70.
More on tepid Chinese inflation – Chinese bubble? Chinese inflation? Chinese crash? When do we start getting the endless “Chinese crisis hits stocks” headlines like we get out of Europe? Or will we? China’s got all the savings, and the US and EU got all the debt. Not sure you can really compare China with the EU/US in very many economic ways at all because of that primary factor — savings vs. debt in the respective economies is driving everything right now. See the bond market craziness headline above.
