Fear and Greed!

Here's a stock quote for you that my friend Troy gave me:
"People make financial mistakes because of two reasons: FEAR and GREED."

So when buying and selling stocks, WHAT is motivating you?!

News update. Yesterday the stock market retreated from its 2007 highs. My friend Bryan believes with Phil Town that a big stock crash could be in the making. Its definitely possible. I asked Bryan what the bad news would be that would create the crash and he replied that we're being surrounded by bad news. Here in the US, our economy is not getting any better. Europe is holding on by a thread. And now even China is having to cut back and their projected growth is being stunted. I'm guessing that perhaps the FED is pumping 30 billion dollars into the economy every month now on an almost vain hope of reigniting the economy. So with all the fear out there, what do you suppose will happen?

Bryans Take: 15% Gain in Two Weeks!

In the stock world, my friend Bryan "just sold a truck load of (stock) ZAGG purchased on 8/29/12 for 7.60 a share for 8.75...a 15% gain in two weeks." Great Work Bryan. I'm watching BIDU right now which is another stock we're both interested in.

Concerning BIDU, Bryan just set a limit order for 109.44 to sell BIDU shares that he bought yesterday at 106.78. He sold earlier today just in case the FED decision brought the market down. He went on to say that's 14 trades in a row with no losses - no, sorry, that's 16.

Albies Take: That's unbelievable Bryan! Great work. :-) Just found out the Fed actually are taking steps to buy back 40 Billion a month of debt to try and revive the economy. Talk about a monthly expense we may all have to pay for later!

The Worlds Woes...

Albies Take:

"What central banks everywhere are doing is trying to make sure people are not focused on the world breaking apart," said Dinakar Singh, CEO..."From MSN

(Albie: "they should be more worried about doing the right thing! Lol!!!)"

Troy's Take:

Absolutely!!! I total agree. Central banks are committing financial treason.,"

Albies Take:

"I understand they don't want a 'run on the bank' so to speak but there's got to be a better way..."

Troys Take:

"There is...let the people/countries who are bankrupt go bankrupt. It's painful in the short term but long term it is best! Stop having the countries who saved & sacrificed pay for the people who were reckless! Lol! Your thoughts?"

Albie's Take:

Yes, painful but probably the right thing to do...it doesn't hurt for countries to help if they can - but not at the expense of their own financial stability and especially should not be 'gambling' w/ money they don't have..."

Troys Take:

"I agree. Prepare for bad times and you will only know good times."(Robert Kiyosaki) and: Proverbs 27:12
"A prudent man sees evil and hides himself, the naive proceed and pay the penalty."

Great quote & verse Troy!

Albie's Personal Stock Update

Today I've sold out of my long time holdings of SYK and TNDM and am now considering buying BIDU (the google of China). BIDU has doubled its EPS four times in the last ten years. So I'm impressed with its financial numbers. Bidu is way below its half price tag of $286. I would give BIDU a sticker price of $573. So to buy it now at 107.35 seems like an incredible deal. It also has an incredible Net income of almost half of what it makes! Amazing. After throwing the thought of buying this stock with my other investor partners, I will probably buy in today.

The Last TWO Days!

In the stock world, we're still waiting to see if the FED is going to give another massive monetary injection into our economy. Yesterday the stock market jumped to the highest level since 2007 because of it. Craziness still persists over in Europe as they are tightening the screws on the money they give out to save the Euro. Even though they still plan to give out money, they are tightening the regulations about it. Here's a fast news highlight of it:

9-11-12
From MSN:
Updated at 11:30 a.m. ET: Stocks were moving higher Tuesday as investors exercised caution ahead of possible policy action from the Federal Reserve and a key decision by a German court.

The Dow Jones industrial average was lately up over 90 points, having touched its highest level since December 2007.

Equities have rallied on expectations for fresh stimulus measures from central banks, with economists forecasting a 60 percent chance the Fed will announce another round of quantitative easing.


9-10-12
"What central banks everywhere are doing is trying to make sure people are not focused on the world breaking apart," said Dinakar Singh, CEO of TPG-Axon Capital. "Ultimately I don't think lower rates make that much difference anymore. There aren't that many people left that haven't borrowed money -- companies or people -- but would if rates were lower. "

may extend its stated promise to keep interest rates ultra-low further into the future. Some market watchers, and a few Fed policy makers, have expressed concerns those moves could do more harm than good.

Even as low rates have failed to spur growth, they're penalizing savers. Insurance and pension funds have been hit hard by record low returns needed to fund long-term obligations. And, at some point, the Fed will have to start selling its massive holdings in bonds, forcing rates higher and producing a drag on growth. Discussions about that "exit strategy," frequent following the Fed's first round of bond-buying, have all but disappeared from recent Fed deliberations.

Europe's central bank, meanwhile, is also embarking on its second round of bond buying to try to head off a deepening recession. But the ECB's easy money efforts appear to have had even less impact on the eurozone crisis than its American counterpart.

" Following a series of monthly data showing China's once-hot growth winding down, Beijing last week announced a series of new infrastructure projects to try to reverse the downturn.

But the measures are much more limited than the massive stimulus undertaken following the 2008 collapse. That spending spree left China with more roads, bridges, airports and rail lines than it needs. Now, as growth has slowed again, inventories of raw materials and finished goods are piling up."

aced with an ongoing global slowdown, though, central bankers around the world are loathe to do nothing.  Despite the limited impact of dumping more money into the economy, even easy-money skeptics at the Fed will likely go along with another round, according to Neal Soss CSFB chief economist.

"Even those who doubt the efficacy of monetary policy under current circumstances may well feel obliged not to disappoint financial markets," he said. "First, do no harm."

Some preliminary thoughts on BIDU

My Stock News: Yesterday, I found out about a company named BIDU. Today, I found out they are the Chinese equivalent of 'google'. They also have amazing net profits. they have declined a significant amount as you can see, if you look at the monthly chart. This could mean a great buying opportunity - if it's not already too late?! Tomorrow I will inspect there ten year history.

Check it Out too!

Got to check out the stock BIDU today. My investment partner Bryan Davis gave me the heads up about them this morning, so I need to do my due diligence and look into their ten year financials and see if its indeed worth investing in!

Market Awareness, By Albie

The stock market is showing some positive signs this morning ,as I write, with companies boosting profits without having to hire. (At least something positive, although I would like to see a boost in hiring). What's worrying the stock market is the continuing problems in Europe and Facebook's stock price having dropped so much. Here are the details:

"Wednesday, September 5, 2012, 5:33 AM PDT
US productivity grew at 2.2 percent rate in April-June quarter, faster than previously thought." Yahoo news.

"Companies boosted profits without hiring this spring (So how did those companies make more stuff and serve more customers without hiring more workers?)

They didn't ask employees to work more hours. They asked them to work harder. And they didn't hand out raises. 

The Labor Department reported Wednesday that the productivity of the U.S. workforce rose at a much faster clip than previously thought in the second quarter. Productivity – which simply measures the volume of goods and services produced per worker per hour – jumped at a 2.2 percent annual rate. That was faster than many economists had expected." MSN

"After years of speculation that the social media giant would go public, it finally did so in May, and since then its stock price has fallen 53 percent and counting, washing away more than $50 billion in market value.

Facebook's share price hit a new all-time low Tuesday, sinking below $18 for the first time, although it perked up in after-hours trading on news the company had taken steps to reassure investors and its own employees as its share price spirals downward." MSN