From The Editor. Apple, Blogs, Al Gore, The People In Power We ‘Rely On’, The Eurozone, The Markets, And The Craziness Of The Investing And Political World Today.
After today’s market action and events, I wanted to write a few random thoughts off the top of my head.
First off lets take Apple. The shares rallied about $30.00 in the past five trading days ( September 15 they closed at $392.00 and they ran to a new high of $422.86 on the 20th) on pure RUMORS and Blog Posts about the iPhone 5.0. That’s about $30,000,000,000 in market cap gained in 5 days on rumors! Today even the NYT, WSJ, Forbes, CNN, FOX…… all said the iPhone 5.0 is coming on October 4th, 2011. When you read the story its all based on the All Things Digital Blog and article. There are Blogs and articles blogging about other blogs and articles. THERE HAS BEEN NOT ONE WORD FROM THE COMPANY EVER ON THE IPHONE 5.0 OR IPHONE 4GS. Even Al Gore, an Apple Board Member, was quoted as saying the iPhones ( plural ) are coming in October. When the story is then read, its from a BLOGGER writing on his blog from South Africa where Al Gore was speaking. If he did say this, and as he is a board member, he should be fired from the board immediately. I know Al Gore invented the internet, as he says, but if this is really true, and he is that stupid then Apple needs to let him go. Again though, it was from a Blog Post. We love Apple, and think its the best company out there, but when bloggers and NOT Apple can help the stock go up $30 Billion in 5 days it makes me think should the name really be Tulip instead of Apple!
Second, I want to discuss our Fed Chairman ( The author of the financial crash ) and those others in power that are there to help the economy and the markets (allegedly). What Mr. Bernanke did today was absolutely stupid. Several weeks ago he gave a speech in Jackson Hole and said things were looking better for the second half of 2011 and going forward. When the investors and traders realized this finally, the markets reacted favorably and rallied substantially. Today, he presents the Twister or whatever you want to call it, and states in the speech that there are “Significant risks for the US and Global Economy going forward.” Everything changed in a few weeks from positive to extreme negative?? Then he pulls out the Twister for $400 Billion through 2012 and this will not accomplish anything. The market drops 285 dow points after being up earlier on the NASDAQ. He has shot his load, again. When will he realize that he has been shooting with a defective gun that shoots backwards, hitting the shooter, instead of forwards!
In line with the above on Mr. Bernanke today, it makes me think of the situation from a higher elevation, or lets say the 30,000 foot view. We are supposed to have people in the positions of power, like the Fed Chairman, the Treasury Secretary, Members Of Congress, the President, the leaders of the Eurozone countries, their Finance Ministers, and ECB officials that we can trust and rely on, especially in times like these and over the past few years. As far as I am concerned, Mr. Bernanke gets an “F-” grade and helped create the problems we are in now. The same goes for Mr. Geithner, grade “F” . He recently went to Europe and preached to them and did not listen to a word they said ( last I heard 75% of communication is listening NOT speaking ), and he too can not be relied on as he is part of the problem. (Lehman anyone? ).
We have a Congress, both Republicans AND Democrats that acted just so terribly during the debt ceiling fiasco. All they did was show the world how stupid, confused, and weak the politicians and governmental brain power is in the U.S.A. It also showed how divided we are now, especially with Obama as the President. Up to the top of the food chain we go to the President, Barack Hussein Obama, who literally appears to be doing everything intentionally he can to make America Fail, and Fail Miserably. I agree with Rush Limbaugh when he said upon Obama taking office, “I Hope He Fails” as he could not be doing a worse job than he has been and we all may as well expect it to continue. I think its time to ask a bookie online what the odds are that he will win in 2012. Then fly to Vegas and make a bet against him. How about the odds that he will even run in 2012? Hillary who? We do not hear much from her at all now. I wonder why?
Lets jump the pond to the Eurozone. If you think the U.S.A. is doing a bad job of it, there is at least some hope that “our people” are not THAT bad as compared to what we are seeing from the Eurozone. I think everyone knows by now that the ” Eurozone ” is a failed experiment and is broken. Its comprised of 17 individual nations with different cultures and values all bunched together as a ” nation ” with no central government or treasury. They are just like the states here but all speak different languages. ( Tower Of Babel ring a bell???). Each can not print their own currency, and pretty much rely on Germany and then France to get by when a weaker nation has troubles. Greece is in the headlines daily, hurting our markets here constantly. Let it FAIL already! Does anyone realize that when Greece wanted to go into the EU they had to comply with all these rules and financial statements and guidelines to get accepted? According to numerous reliable papers and people in the EU, the Finance Minister then compilied all the numbers and pretty much cooked the books so Greece could gain entry. So when it was found out about this how was he punished? He became the PRIME MINISTER and is still in place there today! How can anyone there or here even trust this person to deal with on financial matters? In the Eurozone has anyone noticed how many rumors are floating around there daily? Its like the Apple bloggers on the iPhone 5!. They use rumors to dispel other rumors its so prevalent. How can we trust any of this? I am wondering, are the Europeans back from their whole summer vacations yet?
Lets take the EU a step further regarding the 17 nations that have to come together and agree before change is made. You have 70% of the Germans who DO NOT want to be in the Eurozone, and you have 70% of the people in socialist France that want TO be IN the Eurozone! Yes, that really works. That’s common thinking. We better wait and ask the Slovakians what they think too, and lets ask them with a deep local Irish accent while we are at it! Over a Guinness Beer or Slovakian Absinthe? ( maybe thats the key) ? Maybe we could all get together with them for a party at Italian Prime Minister Berlusconi’s Home for a Bunga Bunga party with hookers, strippers and politicians!
What I am getting at is after all this is who is there for us as a country to rely on TODAY to make things any better? Who do we, and the people in the Eurozone too, have that are qualified to develop a plan thatâ€™s made with common sense, integrity, intelligence and that will achieve positive results. Something that is completely opposite of what Obama and those in the Eurozone have been trying for quite a while now. Unfortunately, I do not see anyone around now that can do it, nor do I with great confidence yet in those who are currently going to run for office in 2012. How about actually getting a solid group of people that have CREATED tons of jobs, building a businesses from scratch, all together for guidance and not a bunch of empty suits, educators, politicians or economists that have never created a job in their life!!!.
Fortunately, the markets amazingly price things into stock values in advance. I do not see a deep recession coming, or double dip as they are calling for, and I do think we are in the process of making a bottom somewhere here or lower. I think we can have a good rally when that bottom is reached, and that some stocks that have been hammered lately will do well in the future. I believe that good stocks should be purchased on periods of weakness. I believe when we have some positive changes in any of the things mentioned above, like a new President especially, or at least pricing in the loss in 2012 of Obama for president, we can then see even more great positives for the investing future through 2012.
One more thing I forgot to mention. Warren Buffett and his call for a tax hike plan. Please tell me he is kidding. This makes him not only the second richest American, but the Biggest hypocrite in the world. I still can not imagine why the hell would he, the alleged Legend, want a TAX INCREASE named after him? To me, that’s insanity, or just plain Ego.
Bob Kurlander Editor