Buffet made big moves in the stock market a couple of months agatha we just found out about last night. Buffets move seemed to overshadow the whole session. S p back. 3 . Nasdaq advanced. I have long been a believer in doing your own homework and finding your own Comfort Level with individual stocks. If you cant do that if you cant do the research and make up your own mind its imperative that you do not follow someone, anyone blindly whether it be me or a money manager you saw on television, a ceo that talks a good game or even yes, warren buffet. If you cant do the homework and you still want exposure to the stock market just go buy a index fund. I love index funds. They allow you to eliminate single stock risk meaning the one stock you can buy can be caught up in a scandal or miss the quarter repeatedly or simply not participate in the general upswing that youre looking for. There are plenty of indices out there to like. Its a total stock market return. Meaning all u. S. Stocks. I ca
And take a jaundiced idea to things that were going so right just yesterday . Thats what happened today a day with the dow dropped 75 points and the nasdaq lost. 56 . I have to admit i found it more than a little daunting. We take the rosecolored glasses off and we see some chinks in this market. Retail and restaurants, we know retail has been leading this market because a combination of healthy job growth and the change back from those 220s when you fill up at the pump. What if people stop shopping even though they didnt want to . This is all hypothetical but do not laugh. I was staring out the window last night at a small mexican restaurant. Mesmerized i was at that front top table. Mez mer mesmerized at the fact that nobody was walking by. No one was out. No one was strolling. No one. It was like some sort of scifi movie where all human life had been obliterated. Not even walking dead. By 10 00, if a walker staggered in i would have bought the guy a corona. I should have said i cant
Whats right for the economy when it sees fit and may or may not be patient depending on whether patience is required or warranted. The dow gained and the s p gained 2. 22 and the nasdaq. So we go back to what brought us up here profit outlooks opportunity, and most important, pentup demand. No not pentup demand for laborer sales or new homes. Pentup demand for stocks. As so many Portfolio Managers wanted to be sure the fed wasnt going to create another they know nothing moment and crash stocks lower. Yep, weve become binary again, hanging on every word from the fed, hoping and praying it wont do something stupid. While we were hoping and praying the money stacks up on the sidelines and the hedge fund and Mutual Fund Managers along with the pension Fund Managers, theyre just waiting to hear with the fed will blow it. When the fed doesnt blow it and the big bad event is over, we rally like crazy you would think that we would eventually have some faith in the fed not to do the wrong thing
Falling 0. 33 . Nasdaq advancing 2. 61 . But still, quite a contrast to yesterdays very strong performance. Why cant we put together a winning streak . Why cant we go up for more than one day . I think there are a host of reasons why we rarely have backtoback up days anymore. And the reasons are all endemic to 2015. And theyre worth going over tonight. Because i dont know about you, but i find this market maddening first, we know the estimates from Many Companies are just plain too high. It has been such a long time since that was the case. Many years in fact. And we dont seem to be ready for it. Case in point is intel. Last week intel came out and said business was weak in part because of its personal computer sales, and also because of the strong dollar. Amazingly, on the day of that hideous announcement and it was ugly the house of pain. The stock market as a whole reacted as if intel were some sort of minor, unimportant company, as opposed to the Biggest Semiconductor Company on ea
Skriz developing in the market. We see it every day. The s p claimed. 05 , and the nasdaq advanced 3 . Ing itst its about the impact on world events. The market is going to distinguish between stocks that get hurt by the Ukraine Russia conflict, and the local advances. Bye, bye, bye. Were now in the process of discounting a pro tracted conflict in ukraine without a solution. It will keep controlling. Especially when our president is flying to estonia that war could be on the agenda. That cant be dismissed. Now this has been a brutal period for some stocks, and good for others. Hence why the s p 500 is breaking records with the gains by a changing of the guard out of international into local. Out of Economic Sensitivity into high secular growth, meaning a worldwide economic expansion isnt needed for companies to beat the estimates. Many of the United Statesbased companies roaring are now rolling over. The moneys pouring out of the internationals and pouring into domestic winners because