Saturday, November 13, 2010

13 November 2010 First Time In the Air

BAGAKOAA 13 November 2010 First Time In the Air

This is a first as I am writing today’s post from my Mac Air Notebook.  I like it, but the screen emulation seems to be a bit small.  So that means I will miss more of my grammatical and spelling screw-ups than usual, if possible.  Let see how it goes.

I had an early wake up call from our 16 year old poodle, but it allowed me to get to breakfast early and start tearing apart this week’s Barron’s.  I have been critical of the publication in the past several weeks.  This week makes up for it.  Please pick up a copy this week as it worth the $5.00 at the news stands.

Here are a few of the highlights.  The cover story is all about the explosive growth of ETFs and ETNs.  Almost 90 Billion dollars flowed into TEFs in the first 10 months of this year.  Andrew Bary walks us through the advantages and pit falls of using ETFs to manage different asset categories.  This is a very thorough and insightful article about a very helpful investment device.  

Alan Abelson does a good job explaining Chinas recent application of a wet blanket to the 5-week rally.  He also explains the Eurozone sovereign debt issues and how it played a role in slowing things down this week.  No one is actually declaring an end to the two-month rally we called here on 15 September.  In fact I got the impression that there was a bullish undertone in most of the articles, which puts my “Its Over” post as an outlier opinion.  Most of the bullish comments were tempered with caveats about Euro Sovereign debt issues or inflation concerns and asset bubble popping or commodity crashes.  Other than that they were fairly bullish viewpoints.

The best article of all, and I guarantee you worth the cover price, is the Lawrence Strauss Article, actually an interview, with John Lynch, Chief Equity Strategist at Wells Fargo.  Here is what I would suggest you do, pick up a copy of the article or get it on line and have fired up on your browser.  Follow the article as Lynch describes his strategies and look up any investment terms you do not grasp.  I get accused all the time of talking well above our readers’ investment IQ.  This article takes it up a notch or two, but it is not investment speak for the sake of investment speak.  His strategies and explanations are spot on for the current investment climate.  So if you want to get a valuable insight into what do now by someone who has a good track record and manages billions, read the article a look up the tougher terms.

In summary of this piece, Lynch is still relatively bullish on stocks, an S & P 500 of1200-1225 seems to be the high end of this rally, he has shifted from a pure Graham Dodd valuist to a valuist and technical chart reader, he likes what Bernanke has done but is worried that he is drawing too much from lagging indicators and not looking forward enough, he thinks forward looking statements by many of the CEOs are a bit too aggressive for 2011, he has taken profits and is focusing on his strongest performer (Hey we did that yesterday), and he likes tech, energy, industrials, materials.  (This Mac Air makes it really really easy to make long run on sentences.)

We have another new reader to the Blog, My Aunt Kay has asked to be added.  That makes 42 and counting.  Welcome aboard Aunt Kay.  I'll try and behave.

The Weather Started Getting Rough

I might not be the skipper or the professor, but I never leave home without my Barron's

I'll give you some insight into the seek ahead tonight or tommorow.

Salve Lucrum


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