“The stockmarket is a device for transferring money from the impatient to the patient.” – Warren Buffett
By Ed Emerson
Crowds make horrible fortune tellers.
They chase value (upward trends), buying high to the peak and then selling their positions away, often at a lower rate as they grow frustrated and anxious when the upward trend falters, and then move on to chase value elsewhere.
Rinse and repeat…until bankrupt. Not a clever strategy.
But the excesses of these crowd decisions, particularly in investing, make for wonderful indicators.
Read’em and reap. This week’s Stockmarket Sherpas are:
“Can’t Get No Fracking Satisfaction…”
Points of Few – Alan Steel
It’s been six years and a few months since the Bank of England cut interest rates down to their current low. And now, instead of a big “thank you” for the cheap money ride, folks are panicking about the next upswing.
Sounds awfully like the oil sector seesaw, eh?
Unhappy at first with high prices, then unhappy with low prices, then worried about the current trading range.
Seems like we just can’t get any “fracking” peace!… Read
“The Ghost in the Stockmarket Machine…”
View from Manhattan – Mike Williams
Now we all know the impact that the Baby Boomers have had on our world, a cohort that comprises 78.2 million people.
The kicker with Gen Y is that there are 100 million of them….
So if you thought 78 million people caused a bang as they grew up and built their lives, rest assured it’ll be a bigger bang when 100 million do the same… Read
“The China Syndrome…”
Phil’s Stock World – Phil Davis
I’ve been warning you for weeks that a big correction is coming in China.
And it’s been amusing reading how wrong I was and how it’s a new paradigm that I don’t understand and China isn’t like other markets etc., etc.
In other words – pretty much the same stuff people say right before every bubble bursts.
But instead of dot.com or sub-prime, now people say “this time is different” for China… Read
“How to Tell if you’re Getting Bad Financial Advice…”
A Wealth of Common Sense – Ben Carlson
If your advisor thinks only in terms of how much money they can bring in, you’re probably not getting the very good advice.
Yes, it’s a business and everyone has to make a living.
But it’s never going to be a great situation for you as a client if your advisor is constantly looking for opportunities to cross-sell you as many products as they can to maximize their earnings… Read
“The Broke, The Stupid and the Narcissistic…”
StockTwits – Howard Lindzon
The Federal Reserve took a money printing break and found that 47% of Americans would not be able to head to an ATM, cash bitcoins, Paypal, Square, Coupon their way to $400 in order to pay for an emergency.
Jamie Dimon (JP Morgan CEO) snuck away from the bank teller where he has spent the last 200 days paying billions in fines, to a shareholder meeting to fight for a massive pay raise.
He calls anyone that disagrees (likely the 47 percent of people that don’t have $400 lying around) lazy… Read
“The Lifeboat Drill for Investors…”
Behavior Gap – Carl Richards
Calm water makes a lifeboat drill much easier.
We aren’t fighting the waves or the fear we feel during an emergency.
Still, if the worst happens, and the drill becomes reality, at least we’ve rehearsed.
We’ll know exactly what we are supposed do… Read
“When the Interest Rate Waters Rise…”
The Reformed Broker – Josh Brown
When (if) interest rates rise, perhaps in 6 months or sometime around when my grandchildren are graduating space college, there will likely be some pressure on various portions of your portfolio.
But where? And how bad might it be?
And for what duration will the pain last…? Read
More Stockmarket Sherpas…
Coming to your Emotional Rescue… Read
From Buttonwood to Bull Markets and Bear Truths… Read