I agree with a lot of this, we’re at a critical turning point.
… Clearly, it’s not the glory days of airline travel, when every stewardess was a 9 and there were free cookies and scotch for all. You can’t take your kid up to meet the pilot and there’s no free blankets, just a tiny pack of pretzels. But in this world of diminished expectations, Southwest is the best out there right now.
Does anyone speak jive?
I love them, you love them. Put your stock money where it counts, in buffalo wings.
(ProofTrader is a collaborative stock picking site and community blog where each contributor is rated with a 1-100 score.)
Interesting stuff in here. I like what he says about not needing to start a trend, not needing to be able to predict the future, and the vertical reach of companies like Facebook and Twitter.
Oil is within striking distance of $100 which should be a relief for anyone not long oil contracts. http://www.marketwatch.com/story/crude-oil-extends-fall-in-asia-trading-hours-2011-05-05 “It all started with the precious metals earlier,” said James Cordier, a portfolio manager at Optionsellers.com in Florida. “Oil is down because everyone is heading for the doors” to unwind their short dollar, long commodities position, he added. It seems to me that the run-up in oil was all due to the wild speculation that middle east unrest could lead to a contagion effect that could cause havoc in Saudi Arabia or Iran. This just isn’t panning out and the high inventory of oil (which was never really interrupted, supply-wise, by Libyan unrest) meant this had to happen eventually. Were speculators involved in the run-up? Absolutely. Do I have malice in my heart for them? Not really. But I smile thinking some are losing their shirts now. On the commodities front, an excellent, timely short prediction about Silver (SLV) here: http://www.prooftrader.com/symbol/SLV/924/Cramer-says-buy-silver-so-Ill-sell 25% gain in about a week. Not bad at all.
Perusing Politico today and came across this:
“Economists and money managers see bin Laden’s death as a potential psychological pivot point away from the “Lost Decade” of low confidence and recession ushered in by the Sept. 11th terrorist attacks.”
This seems almost nonsensical - a man we hunted for 10 years and spent probably a trillion dollars fighting in Afghanistan ostensibly because of his actions, that his death could mark a psychological turning point in the American economy?
I mean, the economy is psychological. The return of consumer spending beginning in let’s say the second quarter of 2009 and continuing today was based largely on people’s confidence that everything would turn out okay. After all the housing picture has mostly worsened, and the jobs picture, while past its bottom, is not very pretty. Credit card rates are still high and loan standards are still stringent. But the consumer confidence numbers continue to climb.
Perhaps this will give them a further boost. But we’ve got to do something about the price of gas. It cost me $74 to fill up my car today and I remember when gas prices bottomed a few years ago it was down to like $40. So not quite double but a huge increase. I will admit that gas prices are not the talk of the town the way they were in 2008. Because of that shock, people are less fazed by this round of price increases. But how long can that last if the trajectory keeps going? We’re not even into the ‘summer driving season’ yet.
Not that politicians can affect gas prices, not really, but if the current administration wants to really calm people down it will find some way to get the price of a gallon of gas back to $3.