Lion of the Blogosphere

Archive for the ‘Investments’ Category

When NFL players invest in cryptocurrency

http://www.businessinsider.com/richard-sherman-bitcoin-price-cobinhood-exchange-no-fees-2018-2

That probably means that there’s a bubble. It’s well known that NFL players are the world’s worst investors. Getting ripped off is what they are famous for.

But as I have pointed out before, my investment advice has often been badly timed.

Written by Lion of the Blogosphere

March 2, 2018 at EDT pm

Posted in Investments

Never come to my blog for stock advice

Another bad day for stock prices. This post could have been me capitulating to the bull market.

Written by Lion of the Blogosphere

February 8, 2018 at EDT pm

Posted in Investments

MSM blaming stock market volatility on Trump tax cuts

They say that the possibility of inflation and budget deficits are hurting the stock market.

I don’t actually buy it. Why didn’t the volatility start in December? Unlike all other tax cuts in my lifetime, the HUGE tax cuts on corporate income are beyond a doubt bullish for stocks (at least in the short run). Rational analysis is that stocks are worth more after the huge corporate tax cut.

Bubbles pop for no reason at all. But if Trump took credit for a bull market that started many years before he actually became president, then it’s to be expected that the people who hate him will gleefully blame him for a bear market (although it’s not at all clear yet that a bear market has begun).

* * *

My opinion on the wisdom of the tax cut is that it’s bad policy to feed a bubble, and that the top 1% rich didn’t need their taxes cut, and based on how much they hate Trump and supported HRC, they didn’t deserve a tax cut from Trump and Republicans. The tax cut should have been more targeted to benefit the prole whites who voted for Trump.

Written by Lion of the Blogosphere

February 8, 2018 at EDT am

Posted in Investments

The CEO with the bad toupée

Many years ago, shortly after I started working for a biotech company in Phoenix, I asked someone, “who’s the old guy with a bad toupée?” That was the CEO. His bad toupée was legendary. A topic of discussion on the Yahoo Finance message boards.

Written by Lion of the Blogosphere

January 29, 2018 at EDT pm

Posted in Investments

Bitcoin bubble?

Jonathan Ratner writes in the Financial Post, “Whether it’s the shoeshine boy of decades past, or the taxi driver of more recent times, an old investing adage suggests that when somebody you wouldn’t expect is talking stocks or giving you portfolio advice, it’s time to sell.”

I just overheard one Indian IT person teaching another Indian IT person how to buy bitcoin.

Time to sell?

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Can bitcoin ever be a useful unit of exchange for the AVERAGE person? Today, the average person doesn’t know how to buy or use bitcoin, and even people who know how to buy it and use it all too often have their bitcoin stolen by hackers.

(Of course, things can change. I once thought the average person would never use the internet, and boy was I wrong about that!)

Credit card transaction fees suck, but nevertheless the credit card companies provide enough added value and security that they are almost universally used and accepted by both consumers and merchants. What’s the catalyst that will cause everyone to switch over to using bitcoin?

I recently pointed out that computer game site Steam recently STOPPED accepting bitcoin because it’s less expensive/risky to just take credit cards and Paypal despite the transaction fees.

Written by Lion of the Blogosphere

December 28, 2017 at EDT pm

Stock market advice

I just bought some SPY (a large ETF that tracks the S&P 500).

Based on the proverb to “buy the rumor, sell the news,” this is a good time to sell, with the news being the Republican tax bill.

But I think that post-tax-bill animal spirits plus the January Effect will keep stocks buoyant through at least February.

However, I don’t feel strongly enough about this to go 100% in. And there’s the usual warning that my timing advice is more often wrong than right.

Written by Lion of the Blogosphere

December 20, 2017 at EDT am

Lion car recommendation: Honda FIT

Total cost of ownership is only about $5000/year (because of low price and high gas mileage). That’s a lot less expensive than any electric or hybrid car. Furthermore, because it’s a hatchback, it’s very practical for being able to transport a lot of cargo for a small car.

It’s also good for keeping gold diggers and other high-maintenance women away.

Written by Lion of the Blogosphere

October 23, 2017 at EDT pm

Posted in Investments

Amazon acquires Whole Foods

When I first heard this news, it felt really huge. Like big changes are coming supermarkets and retail in general. Huge changes.

Wall Street (collectively) had the same feeling. Normally when there’s a corporate takeover, the stock price of the acquiring corporation goes down. But this time, stock price of Amazon went up, and the stock price of every other supermarket and retail company went down. This reaction to a corporate takeover is unheard of. At least, I don’t ever recall such a thing happening before.

It should be noted that Whole Foods is the most SWPL of all big supermarket chains. The future of retail is divided into prole or SWPL with nothing in between.

Also, it seems to me that supermarkets are the only type of retail which I don’t see being replaced by online sales. You can’t buy meat and dairy online. They will spoil by the time they get to you. Unless you have fast delivery using refrigerated trucks. Which requires a large physical local infrastructure. And Amazon is buying part of such an infrastructure with its acquisition of Whole Foods.

Written by Lion of the Blogosphere

June 16, 2017 at EDT pm

Posted in Investments

I was totally wrong about a post-election stock market crash

Yes, I am not always right about things. But unlike the smug left-wing mainstream media, at least I admit when I was wrong.

I wrote this post about the possible stock market crash if Trump wins. So what is the market doing today? It’s soaring.

At least I have good company. Last evening, Paul Krugman wrote:

It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover?

Frankly, I find it hard to care much, even though this is my specialty. The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear.

Still, I guess people want an answer: If the question is when markets will recover, a first-pass answer is never.

Wrong, wrong wrong. It took the markets less than 24 hours to recover.

I may have also been wrong, but I don’t have a Nobel Prize in Economics and don’t get paid a lot of money to write a newspaper column in the world’s most prestigious newspaper. And I don’t expect Krugman to apologize.

Written by Lion of the Blogosphere

November 9, 2016 at EDT pm

Posted in Investments, Politics

Today I sold all of my stocks

Last month I sold half (on a poorly timed day) and today I sold the rest, so I now have no money invested in stocks.

The financial markets scare me with the S&P 500 Index being close to its all-time high (which was in August) and the presidential election coming up. My conspiracy theory is that the Illuminati are holding the market together to help HRC win the election, because everyone knows a market crash hurts the party in power: McCain had no chance after bad financial stuff happened in September.

If I turn out to be wrong, well here’s a public record, so you can make fun of me later.

Written by Lion of the Blogosphere

October 28, 2016 at EDT pm

Posted in Investments, Politics

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