I have a lot of errands to run today. A good thing since it will cause me to IGNORE the short term lunacy. I would recommend doing the same....to any investor that has a horizan beyond the life span of a fruit fly.
I just got back from running around. LOL....nothing going on in the markets today. We did actually see a good number of earnings BEATS recently.....I liked the COKE earnings. Lets just keep racking up the BEATS.....and ignore what we have no control over.....the speculative short term drama.
Another little article that I like. Want to be a great fund manager? Don’t study finance https://klementoninvesting.substack.com/p/want-to-be-a-great-fund-manager-dont (BOLD is my opinion OR what I consider important content) "Let’s face it, we all know there is a hierarchy of study subjects. As the eminent philosopher Dr. Sheldon Cooper of Big Bang Theory already knew, at the top of the pile are theoretical physicists and mathematicians. Below there are experimental physicists, then come engineers. Below that you have the mere mortals of economists and finance majors and at the very bottom you have…the dirt people. That studying a non-finance major is superior should be self-evident, but if you have doubts, take a look at this study that compares the performance of finance majors and non-finance majors on their home turf: Managing money. Based on hand-collected data of fund managers and their education (and rest assured that data is guaranteed to be free from biases) the authors find that fund managers with a non-finance major outperform fund managers with a finance major by 0.3% per quarter. That’s 1.21% per year. And if you don’t understand why the annualised difference is 1.21% and not 1.2% you must be a finance major, too. That finance majors are unable to compete with non-finance majors can be seen from an event study where the performance of funds run by non-finance majors was compared to the performance of funds that switched from a non-finance major to a finance major. On average, fund performance dropped by 2%-4% after a finance major took over. This performance difference is driven by the investment approach of finance-trained fund managers. Finance majors tend to focus on the Sharpe ratio as the theoretical trade-off between risk and return, while non-finance majors focus on what matters in real life: returns. The result is that finance majors tend to reduce volatility in their portfolios which increases the Sharpe ratio but also reduces returns. Furthermore, finance majors hold more diversified portfolios which is a bad move if you want to make as much money as possible. So, there you have it. If you want to know which funds are the good ones, all you need to do is check the LinkedIn profile of the fund manager. If they have majored in finance, stay away from them, they are losers compared to us science majors. They may even be worse than those engineering majors. But not the dirt people. Nobody is worse than the dirt people…" MY COMMENT The main thing I would want from a Fund Manager......is COMMON SENSE. Peter Lynch was the king of common sense and real world business sense. I did take accounting and economics in college....but....my main interest in Business was......MARKETING. I guess that tied in with my BS in Psychology. I was lucky since I have always had a great intuitive instinct for marketing and business. As a business owner I found out that my "intuitive business sense" was real. As to Fund Managers.....yes...I would want someone that is not tied to data, accounting, bean counting, and all the other SEMI-TECHNICAL BS that people use to manage investments.
A perfect end....to a perfect day.....every single stock in the RED today. Fortunately thinks to my over-large position in NVDA....I ended up beating the SP500 today by 0.24%. A happy ending. A mid-level loss for me today....again....thanks to NVDA which was only down by $1.20 by the time of the close. Obviously a lot of people used the little dip today to buy or add shares of this stock. For a blood-bath sort of day....I actually ended up much better than I expected. All in all....a very over-blown day today for the markets. WE MOVE FORWARD FROM HERE.
Looks like the market had a little tantrum today. I checked in late in the day and took note of it....and bought a few more shares.
I like this little article. Why Today’s Inflation-Driven Flush Comes at the Perfect Time Inflation is on track to fall to and even below 2% within the next few months https://investorplace.com/hypergrow...ation-driven-flush-comes-at-the-perfect-time/ (BOLD is my opinion OR what I consider important content) "Key Takeaways: Across every major line item, inflation dropped in January. And importantly, pretty much all those inflation rates dropped to really low levels. Excluding shelter, the U.S. inflation rate dropped from 1.9% in December to 1.5% in January. And that means it has been stabilizing below 2% for several months now. Shelter inflation is on track to fall from 6% to 3% or less over the next 12 months, which is why we’re confident that inflation is on track to fall to and even below 2% within the next few months. And while we investors are worried about today’s inflation report, the world’s most powerful are working behind the scenes to construct an AI-dominated future – one that redefines how we live, work, travel, communicate, etc. Learn about this AI Endgame. According to the latest consumer price index (CPI) data, inflation ran hotter than expected in January. These fresh figures spooked the market, and stocks spent the day sliding in response. But we’re confident that this selloff is little more than a golden buying opportunity ahead of the incoming $7 trillion AI Endgame. And in fact, we think that despite the market’s negative reaction, today’s CPI report was quite fundamentally strong. The index showed that the headline inflation rate dropped from 3.4% in December to 3.1% in January. Food inflation dropped from 2.7% to 2.6%, while energy inflation fell to -4.6%. Furniture inflation dropped to -1.3%. Apparel inflation slid to 0.1%. And recreational services and core goods inflation also declined last month. Across every major line item, inflation dropped in January. And importantly, pretty much all those inflation rates dropped to really low levels. Plus, did you know that, excluding housing costs, inflation is running at just 1.5% right now? That’s right. Excluding shelter, the U.S. inflation rate dropped from 1.9% in December to 1.5% in January. And that means it has been stabilizing below 2% for several months now. Outside of housing, the inflation fight is over. But of course, we can’t exclude housing in our overall assessment. History Repeats Rents and mortgage payments account for a huge portion of living expenses. And at 6%, shelter inflation is still problematic right now. That’s why the overall inflation rate is still up at 3.1%. But the government uses actual rents and real-time rent proxies to calculate its shelter inflation, not asking rents. Since renters usually sign 12-month leases, asking rent prices tend to lead actual rent prices by about 12 months. Therefore, the shelter inflation rate is a lagging indicator. Asking rents are the leading indicator here. Indeed, Zillow’s Observed Rent Index – which uses asking rents to approximate shelter inflation – has a strong historical tendency to lead the official shelter rate by about 12 months. And Zillow’s index has been collapsing for 24 months, while the official shelter inflation rate has been falling for just 12 months. The historical relationship here suggests that for the next 12 months, the official shelter inflation rate will keep dropping all the way back to 3% or less (roughly where Zillow’s Observed Rent Index is these days). Inflation: Still on Track for 2% Let’s connect the dots here. Excluding shelter, inflation is running at 1.5% and has been stabilizing below 2% for months now. And shelter inflation is on track to fall from 6% to 3% or less over the next 12 months… That’s why we’re confident that inflation is on track to fall to and even below 2% within the next few months. Not to mention, according to today’s small business optimism survey, the net percentage of small businesses raising selling prices right now (22%) is the lowest since January 2022. So, despite today’s negative reaction to a hotter-than-expected CPI report, the general trend in the U.S. economy remains steady disinflation. That means today’s stock market selloff won’t last. This drop is a buying opportunity… Especially considering that we are on the cusp of what we’re calling the AI Endgame. The Final Word See; while we investors are worried about today’s CPI report, the world’s most powerful are working behind the scenes to construct an AI-dominated future – one that redefines how we live, work, travel, communicate, and more. As we speak, OpenAI is sitting on a world-changing AI breakthrough that needs way more infrastructure than currently exists to be deployed on a global scale. So, CEO Sam Altman is rushing to build that infrastructure. And to do it, he’s looking to the world’s biggest and most powerful governments, companies, and investors to pour $7 trillion into reshaping the global AI industry. The implication, of course, is that once this $7 trillion of AI infrastructure is built, Altman and company will reveal their next-gen artificial superintelligence… We’re calling this endeavor the AI Endgame. And its script is being written right now. So, forget the CPI data. How you prepare for this new era could impact your financial future in a much more meaningful way." MY COMMENT How we parse and slice and dice the inflation data is typical. Basically it is doubtful that our economic data reflects the real world. It is.....basically..... mostly irrelevant to long term investors.
Looking good in the market neighborhood today. I know I have two stocks down without looking at my account.....HD and AAPL. The rest are UP so far. A bounce back day from yesterday.
I did not see this headline when I posted the above. Stock market today: US stocks bounce back from inflation hit https://finance.yahoo.com/news/stoc...bounce-back-from-inflation-hit-143416935.html (BOLD is my opinion OR what I consider important content) "US stocks rose on Wednesday, looking to find a footing after hotter-than-expected inflation data drove a sell-off and dashed hopes for interest rate cuts before the summer. The Dow Jones Industrial Average (^DJI) added 0.4%, bouncing back from a 500-point drop and the blue-chip benchmark's worst day since March 2022. The S&P 500 (^GSPC) added roughly 0.6%, while the Nasdaq Composite added more than 0.7% — also on the heels of sharp declines. Calm is settling in after the surprise consumer inflation print spooked the market. Investors are coming to grips with the prospect of the Federal Reserve holding off on rate cuts until later in the year — and a potential "no landing" for the US economy. Shares in Microsoft (MSFT) inched up in morning trade after the rate-sensitive tech megacap sank in the stock rout. Meanwhile, the 10-year Treasury yield (^TNX) pulled back slightly from the previous day's jump to trade around 4.28%. Comments by Fed officials Austan Goolsbee and Michael Barr in their appearances later in the day could provide more grist for the ever-present debate on rate timing. A new wave of earnings reports also could deliver some impetus, with Cisco (CSCO), Kraft Heinz (KHC), and Warren Buffett-linked Occidental (OXY) among the big hitters on the list. Investors were gripped by the wild fallout from a typo in Lyft's (LYFT) financial update late Tuesday. Shares in the ride-hailing company initially rocketed 67%, but the rally lost steam after Lyft corrected an error in its statement that boosted its profit outlook. The stock remained up a more modest 30% in morning trade." MY COMMENT Yep....a bounce back today. AND....based on the above....really nothing going on today. As a result we will see the market doing what it actually wants to do.....based on fundamentals and earnings.
Glad that I ended my PLTR momentum trade when I did. I think I got the easy, quick, money out of that trade. The stock has been lingering between $24 and $25 since. I sold at $24.25 and hit the low end of my target goal for the trade. I NEVER second guess a buy or sell decision. It is not worth the brain power. I also never second guess a money making decision.....on the basis that I could have made more.
We are seeing a tiny bit of a mid morning fade right now. It seems to happen every day about this time.
The good news just keep on coming. Nvidia tops Amazon value, closes in on Alphabet https://finance.yahoo.com/video/nvidia-tops-amazon-value-closes-065444974.html (BOLD is my opinion OR what I consider important content) "STORY: Nvidia is now more valuable than Amazon, and it’s got another target in its sights. The chipmaker overtook the e-commerce giant in Tuesday trading. By close of business its stock market value stood at $1.78 trillion. That was just ahead of Amazon, which saw its stock sink over 2% during the day. Nvidia is seen as the big winner of the AI boom, with its chips powering chatbots and other such products. It hasn’t been more valuable than Amazon since 2002, when both were worth less than $6 billion. Now the gains make it the fourth-most valuable firm on Wall Street. And it’s just a few billion short of Alphabet. Overtake the Google parent firm, and only Microsoft and Apple would be more valuable."... MY COMMENT In fact as I was typing this I heard on the business TV in the background that is is NOW past GOOGL in market cap. Next target in their sights....MSFT and AAPL.
As to the above.....YES.....I am still buying this company even at these levels. As I mentioned....I bought 20 shares of NVDA in my kids account this Monday at the open.
A nice gain in my account today.....I just looked. My little position in PLTR has a....total.... gain of 15.64%. (thank you Zukodany) I have six of eight stocks up so far today. We just have to hang in there for the next couple of hours. I noticed that my Schwab tax statements have appeared in my accounts today. Now I can finish up the various tax returns that I have partially complete. My two stocks that are currently down are AAPL and GOOGL.
Yesss! Yesterday my dreams came true and I got my first red day FINALLY!…. And you gotta love the analysts and media - market drops due to UNEXPECTED INFLATION DATA… THATS IT… PARTY IS OVER GUYS!! All lies and deceit of course, that is the reason why I am invested in the stock market - to experience lies like these on a regular basis, at some point after a few short years (or less) you get to learn about the bullshit. Today of course, we got all of that money back right at the open.
LOL.....a nice gain for me today. Only a single stock in the RED.....AAPL. I also beat the SP500 today by 0.37%.
I am now off to try to knock out a tax return....with the new tax statements that I was just able to print from Schwab.
Interesting. Here is the top 7 YTD performers in the SP 500 so far. (slickcharts as of close Feb 14). S&P 500 Component Year to Date Returns # Company Symbol YTD Return 1 NVIDIA CORP NVDA 49.23% 2 META PLATFORMS INC CLASS A META 33.71% 3 ELI LILLY + CO LLY 29.92% 4 UBER TECHNOLOGIES INC UBER 28.55% 5 CATALENT INC CTLT 26.73% 6 JUNIPER NETWORKS INC JNPR 25.61% 7 PALO ALTO NETWORKS INC PANW 24.91% What? This can't be true, right? This is not what we are constantly fed by the media. This is not the "Mag 7" that leads the whole market around by the nose....This is not the same group that is responsible for our only gains and simply carrying everything else along by themselves. Once again, it just continues to show how wrong they often are about things.
LOL.....a "perfect" open to the day for me......EVERY stock that I own is in the RED right now. It will be a major victory if one or two turns green.......I am kidding. I really....as usual.....dont care. I guess I will now spend some time reading and see what dramatic issue or fear mongering topic is responsible for this today.
