Capitulation!

The VIX is pretty darn whip lashed. This is nothing new to anyone not under a rock for the past months. However, this is like saying the shingles on the house are blowing off when all you have to do is look out the window at the tornado tearing up your prized green, green grass.


Many are starting to say that a stage of panic has passed, that Wall Street is curled in a ball, wallowing. Hedge fund managers are unloading equity positions that if kept will give them the boot. The DJIA today, within the first ten minutes of trading had dropped 400 points. The USD stacked up against the Yen today is a 13 year low, 95 Yen to 1 USD. USD to B.P. and Euro? A five year high of $1.55 and a two year high of $1.25 respectively. There is also an election that is seems more epic as each day passes.

The condition of our economy, government and situation in the world is ridiculously impossible to wrap a logical thought around. I've heard ad nauseam how we got here, many different viewpoints, with many hypothesizes making much or no sense at all. This current state that we are in, makes me increasingly glad I am majoring in economics. I am no fool, I do not think by getting a paper and taking economic classes at a university will make me Greenspan (wait, he's no longer an idol). I do believe however, whatever I learn will be more knowledge to me than is currently had. This is an aggravating time not to know the groundwork behind our economy's position in greater detail.

Saying all of this, I think it is an amazing opportunity to invest in the market. I do not say this lightly, much research has to be done before anyone invests in anything as "Risk Comes from Not knowing what your doing" (Warren Buffet). Not to say anyone, even Buffet knows the entire situation of the current market. I believe, there will be a recession lasting halfway through 2009 if not more and during this time buying opportunity of great companies that are mired by these conditions. This has been said by many, many people, I believe in history as a good indicator of the future as well. It is really just stating the obvious.

I am not saying that buying into an unstable, volatile market should be done on a whim though, with the logic that "All equities should go up, they can't get any lower right?" Many, many companies, esteemed and not so esteemed will not be around in 2 years, or still alive, bankrupt, and obliterators of you hard-earned money. Be very wary of companies that are a value trap. They seem like an amazing steal, they are down 60-80% of their value from 3, 6, or however many months ago. Oh, and they are riddled with debt problems, payments are due in months with nary bit of capital to be seen.

Finding a company trading less than it is worth is not a hard thing to do at this time, but you have to be able to stomach a possible steady decline in price over the short to mid term. I believe thinking down the road by a few years is the wisest thing for any unexperienced (myself) and experienced investor to do. If anyone is looking for short term gains they need to be in the know to have a fighting chance, and the time and wherewithall to do it. Both of which the majority of investors do not have, myself included. For heaven's sake, do not take Jim Cramer or any other clown's, who think they can predict the markets, advice as the Rosetta Stone to investing.

Do your own research, treat everything with a skeptical caution, use logic and whatever method works the best for you at breaking down what you read and what you perceive as truth. Then take that perception of yours and analyze it's own merit. The internet is an amazing creation, you have the world at your fingertips, > good and < bad information is bountiful and it is your duty as an informed person to find the point of truth in the middle of each claim.


A few sites that I like to read and are good at getting your feet wet are:
Investopedia
Market Watch
Conde Nast
Seeking Alpha
Blogging Stocks

Remember, that every site you ever encounter has an agenda. It is your duty to figure this agenda out, further understanding what slant it has. People will always recommend stocks, strategies and general ideas that benefit themselves in some way.
Understanding this, is a critical step to researching intelligently.

Mixtape Found

So I came across a mix the other day. Turns out its been around, I'm glad I found it. It's a smart, staccato, forty-five minute joyride across several genres. Props to Clifford Lidell, the man behind the mix, for a great anytime track. Props to him for every mixtape he's ever done. He's got some good stuff.

The name of the mixtape is "You're Perfect" and it almost is. Find it here, here and many other places. Ask google for them.

Too bad curling is a winter sport.

Oh the joy of being a global company this time of year. I'm sure Coca-Cola and others are having a blast with all the protesting toward the Olympics*. Have fun, GE, McDonalds and Kodak, for you will all endure what might be extremely bad PR.

Although, I can't really see millions of people putting down their Coke and BigMac because of a companies sponsorship of a ritualistic battle royale the world has grown to love. Who knows, this might just be my American Ignorance of the rest of the world's viewpoint. Especially, the viewpoint of those who are living, dying and enduring in places such as Sudan and Tibet. Hell, I'm sure a vast majority of people could not even pinpoint these places on a map, let alone tell you more about the situations, aside from "people are dying and China is evil." I know that many people do, in fact, have a great deal of knowledge toward this genocide and suppression that is taking place, and are doing a great deal toward protesting and support. But again, that majority could give little more than pitying for a second and getting absorbed in their own life once again.

Frankly, why are we protesting toward these companies more than we are toward our OWN government on these issues? I don't want to come off too Malthusian, but it is not the business and corporations responsibility to condone a country for whatever involvement there is on social issues. Sure, if a company wants to, great, but I can guarantee that 99% of companies in the world are there to make more money, expand their business, please their shareholders, etc. This big mixed economy we call earth has proven that several times over.

All in all, I don't know what exactly to take of the current times. My biggest fear for myself is of becoming too jaded and apathetic on matters that don't directly influence my life.



Summation:

The U.S. government will continue to rely on the slant filled media to blast China.
There are always two sides to a story with the truth lying in the middle.
The Olympics will bring pride to a country and agitation to many others.
Genocide, death, and despair will continue throughout the world with few interjecting in its madness.
Gasoline will rise to $10-15 USD in 2012. Seriously.


*encompassing all protesting related to

First. First post, first blog. I finally feel it's necessary to have my own, so here it is (In all it's pathetic glory). Color:pea green, Content:Non-existent, etc., but everyone starts somewhere right? However, enough with the intro and sentimental talk.

How about our world lately, crazy place? A world in a constant and quickening spiral toward innovation in many areas, hailed as close to the second coming by some, all in all an exciting time to live in. The pace at which a global community is being developed could be called rapid, too quick for some, too slow for others. This, boys and girls, is called a generation gap, differing opinions or a techno-ideological rift (< see how ahead of the times I am, click that link).

Disclaimer: I am not pretentious, ostentatious, or any other dictionary.com word you can think of. Through my sarcasm and s*@&y banter I try to get to the point. If this is not understood, jump to this helpful nugget.

Till next time,
Andrew