Financial Ramblings

The economy is slowing but who cares… Money!!!

Now I know that all seems all good and fine but what many “investors” are basing their rational decisions on is none other than sentiment. And from sequences such as the NASADAQ Bubble/Collapse we all know how long that takes to change and drastically.

I’ve been doing quite some reading over the past few months and one of the things I how many companies segregate earnings. When a company does well they may want to keep that cash “under-the-rug” for a rainy day (pun intended). Similarly, a company may not want to post a loss, especially during a highly competitive earnings season, and they will go ahead push off that loss for a rainy day (what else do companies have to blame bad sales on other than bad weather and a stagnating economy). What you end up with is a nasty bunch of earnings disappointments preceded by some rather disappointing economic data (did someone say 1971?). We may experience this phenomenon once again in the near future.

Of course I can Beat the Market!
A whole bunch of insider trading going on… (not to mention the recent story regarding Dow Jones Co.) Sounding at all familiar? Now all we need is another Enron (trust me there are plenty) and we have an exact replay.


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