Check out our social media platforms!
JYE Financial
21st century business media
  • Home
  • Politics

The harbinger, oh the harbinger...!

1/23/2014

0 Comments

 
Picture
So if the Old Man on CNBC has his facts straight, today is the first time this year that the Dow Jones, the S&P 500, and the NASDAQ composite index all moved in synchronicity. Of course, it happened to move in the "wrong" direction, unless you were a bear, in which case today was a sort of redemption against the ridicule that must have come their way.

This is just a blip, we're told...markets will bounce back, the economy is improving and we're the biggest kid on the block. Our toughest competitor and simultaneously contentious bedfellow China has caught the flu. This our time to shine! USA! USA! USA!

Wall Street pundits and their esteemed guest hosts all have a message to sell. If this weren't so, you'd get a whole lot of truth and some of you may not like what is revealed. The market reality and the multi-trillion dollar behemoth that it represents all confirm one thing : the product doesn't have to work in order for it be valuable.

The irrationality of the investment community is nothing new : asset bubbles and unwarranted exuberance is an integral part of trading lore and so long as there will be humans, there will be soaring hits and devastating misses. Obviously, I would not characterize today's market action in such extreme sentiments. What I would say is that it's a warning.  

While writing the script for a financial news network segment, I mentioned Advanced Micro Devices (NYSE : AMD) as a top speculative pick for 2013. Since the call, share prices exceeded my own bullish expectations. At the time, my research indicated that despite some horrible financial metrics (hence the speculation), the bears took the price down to unreasonable levels ; after all, their products were still very much in demand, despite having a "second-class citizen" status to rival Intel (NASD : INTC). 

The good times came and I sold. Having gone crazy in the other direction, I felt it prudent to take profits off the table. Still, the good times stayed and I began to wonder...are the pundits right? Do fundamentals not matter anymore?  

This week's broad market underperformance highlights the fact that fundamentals do matter. Numbers don't lie. You can fool all the people some of the time, but you can't fool all the people all the time. The laws of math simply don't allow such violations. There's been significant damage done to certain sectors within the economy that don't bode well for many companies. The wild ride taken by the Federal Reserve over the years also assures us that we're going to have unexpected kinks in the road.

Now, more than ever, is a time to re-evaluate commonly accepted belief systems. Apathy is easy, especially when things move along in a predictable manner. The sudden divergence from this artificial fantasy should give us that extra motivation to see what's really going on...

0 Comments



Leave a Reply.

    Stock blog

    Direct.Pointed.Insight. Financial analysis without the filler.

    Archives

    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    Author

    All blogs written by Joshua Enomoto unless otherwise noted

    Categories

    All
    Accounting
    Adam Silver
    Adp
    Advisor
    Alex-jones
    America
    Analysis
    Anecdote
    Annuity
    Art Of War
    Ask
    Assessment
    Assets
    Bank
    Bankers
    Banking
    Basketball
    BBY
    Ben Bernanke
    Bid
    Black Swan
    Bonds
    Books
    Brendan Eich
    Budget
    California Chrome
    Capita
    Capital
    Capitalism
    Cash
    CBO
    Central Bank
    Ceo
    Certificate
    Chairman
    Chairwoman
    Charts
    China
    Clippers
    Cnbc
    Commodities
    Commodity
    Common Stock
    Communism
    Company
    Conglomerate
    Congressional Budget Office
    Conspiracy
    Conspiracy Theories
    Consultant
    Consultation
    Consumer
    Consumer-confidence
    Contrarian
    Contrary
    Corporate
    Corporate-america
    Cost
    Cost Cutting
    Crash
    Currency Evaluation
    Curve
    Defensive
    Defensive Strategies
    Deflation
    Democrat
    Department Of Labor
    Depression
    Derivatives
    Disparity
    Divergence
    Dividend
    Dividends
    DMA
    Donald Sterling
    Dow 30
    Dow Jones
    Earners
    Earnings
    Eastern Bloc
    Economic
    Economics
    Economy
    Effective
    Employ
    Employee
    Employment
    Enomoto
    Equality
    Equities
    ETF
    EU
    European Union
    Executive
    Fat Tail
    Fed
    Federal Reserve
    Fill Or Kill
    Finance
    Firing
    Fiscal
    Football
    Forecast
    Forecasting
    Forward Guidance
    Fund
    Fundamental
    Fundamental Analysis
    Gay Rights
    Gdp
    Gold
    Goldsilver
    Good For The Day
    Gov
    Government
    Government Shutdown
    Govt
    Go With The Money
    Graphs
    Gross Domestic Product
    Growth
    Hard Assets
    Head And Shoulders
    High Frequency Trading
    Holodomor
    Human Resources
    Implied
    Income
    Independence Square
    Index
    Indices
    Inflation
    Insider Trading
    Institution
    Insurance
    Interest
    Investment
    Iron Curtain
    Janet Yellen
    January Effect
    Japan
    Japanese Candlestick
    Jcp
    J.c. Penney
    Jobs
    Jobs Report
    Joshua Enomoto
    Kiev
    Kyiv
    Labor
    Labor Department
    LA Clippers
    Layoffs
    Leadership
    Ledger
    Liabilities
    Los Angeles
    Madden
    Maidan Nezalezhnosti
    Main Street
    Management
    Margin
    Markets
    Media
    Metals
    Metals-complex
    Michael-lewis
    Michael-maloney
    Middle-class
    Minimum Wage
    Monetary Policy
    Money
    Money Story
    Monopoly
    Moving Average
    Mozilla
    Nasdaq
    National Debt
    NBA
    Net
    Net Profitability
    New York Stock Exchange
    NFL
    Nikkei 225
    NYSE
    Obama
    Obligation
    OkCupid
    Options
    Orange Revolution
    Order
    Paul Craig Roberts
    Policy
    Politics
    Portfolio
    Precious-metals
    Probability
    Prop 8
    Proposition 8
    Protests
    Public
    Punt
    Punting
    QE3
    Quantitative Easing
    Rate Change
    Rates
    Recovery
    Register
    Regression
    Republican
    Residual
    Retail
    Retail Market
    Retirement
    Revenue
    Risk
    Risk Management
    Russia
    Russian
    Sales
    Sanctions
    Savings
    Scalp
    Scandal
    Securities
    Share
    Silver
    Simulation
    Soviet
    Soviet Union
    S&p
    S&P 500
    Spread
    Statistics
    Sterling
    Steve Coburn
    Stock Market
    Stock Market Trends
    Stocks
    Stop-loss
    Sun Tzu
    Superbowl
    Taper
    Tapering
    Target
    Tax
    Technical Analysis
    Termination
    Tokyo Stock Exchange
    Trade
    Treasuries
    Trigger
    Ukraine
    Ukrainian
    Unions
    United States
    Uprising
    U.s.
    Usa
    U.S. Labor Department
    Variable
    Violence
    Wage
    Wall Street
    Washington
    Wealth
    Work
    Workers
    Yield
    Yields

    RSS Feed

Powered by Create your own unique website with customizable templates.