Sunday, September 16, 2012
9/16/12 War
The San Francisco Chronicle profiled slain US Ambassador and 'native son' Chris Stevens last week, which included this photo from 1978:
http://www.sfgate.com/default/article/Libyan-ambassador-kept-human-touch-3859504.php#photo-3446341
Is war on the horizon? Conflict and rage are unavoidable (pretty much daily) experiences for all of us- usually contained and quickly forgotten. Certain regions of the Middle East, for some reason, include groups of people that have seemingly nurtured a simmering cauldron of hatred for decades- and there is no end to their defiant 'acting out.' IMO, Desert Storm, the Iraq War, and Afghanistan were/are preludes to the 'real thing.'
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I hope your wrong bro...but I kinda doubt it.
ReplyDeleteEven though we've had a great market year so far, something to think about from Bespoke:
ReplyDeleteThe last time the S&P 500 was up this much YTD on 9/14 was 1997. Went up an additional 5.04% through remainder of year in '97.
And another one:
DeleteThe Market’s P/E Ratio Is Lower Now Than It Was Most of the Time from 1991 to 2010
http://www.crossingwallstreet.com/archives/2012/09/the-markets-pe-ratio-is-lower-now-than-most-of-the-time-from-1991-to-2010.html
Can anyone find the NSPH link on the shelf? I've been thinking this one over all weekend. I honestly don't get it. I can make 10 different arguments and really, they are all lame.
ReplyDeleteForget it. I found what I was looking for.
ReplyDelete'As of Friday, our estimates of prospective return/risk for the S&P 500 have dropped to the single lowest point we’ve observed in a century of data.'
ReplyDeletehttp://www.hussmanfunds.com/wmc/wmc120917.htm
Man, I feel sorry for Hussman. He is a great guy with great insights, but why can't he get his head around the fact that this time IS different? At least over the near term (eventually, all the money that central banks are printing and all the debts that the governments are taking on will come back to bite us, but not yet). The world has NEVER seen such a coordinated global money printing while US was fully off the gold standard. I think all the data prior to US getting off the gold standard is not relevant now, as the underlying dynamics back then was totally different.
DeleteFrom David Kotok:
ReplyDeleteThe Fed is now extracting more and more duration from the market. It may be more than the federal government creates. That means the market price of duration will rise from this additional demand if all things are held equal. But in a global world where the world’s reserve currency is in rapid new money creation, all things are not equal. There are sellers of duration who want to disgorge their US dollar holdings into the Fed’s bid.
Ok, that is the technical definition. Let’s translate this into English.
A quick definition of duration is needed. Duration is a technical term. It measures the sensitivity of the price of an asset to changes in interest rates. It is commonly thought of in terms of years. For example: a single US treasury bill that matures in one year, with no intervening interest payments is considered to have a duration of 1. A zero coupon, 30 year, US Treasury strip has a duration of 30. A 30-year treasury bond with semi-annual coupon payments and a final 30-year maturity has a duration which is calculated as a weighted and discounted series of values of all the payments over the entire 30-year period. The approximate duration of that instrument is about 13. I hope that was understandable. I tried.
The Fed is enlarging the duration of its balance sheet and thereby altering the market’s clearing mechanism. Thus, long duration asset prices are expected to rise. That means US treasury bond yields are expected to fall. But global sellers may have other things in mind. They now suspect the US dollar will weaken and therefore they want to exit their holdings. When they do that, the yields on those instruments will rise and the prices fall if the global sellers sell more in a given period than the Fed is buying. This is the tradeoff we cannot estimate. Only time will tell.
So the volatility in the bond market is rising and will continue to do so. That is what happens when you mess around with duration.
Stocks are a very long duration, variable rate, asset class. They also have the ability to adjust to the inflationary outcomes that this extraordinary Fed policy can deliver. American stocks can state their foreign earnings in US dollar terms. Therefore a weakening US dollar means they will report higher earnings. Thus stocks get a double kick from this policy. They benefit from the weak dollar earnings translation and they benefit from the Fed duration switch.
That explains the market’s reaction to the Fed’s announcement. US long treasury yields rose, not fell. Stocks rose.
Why can't Hussman get his head around the fact that Bernanke's actions DO matter?
DeleteHere is the conclusion from David Kotok (from Cumberland Advisors):
ReplyDelete"Let me be very clear. I disagree with this Fed policy move. It was not my first choice. I think the Fed is now playing with fire. But our job is to manage portfolios and not to make policy. If the Fed is now in QE infinity and if the Fed is now buying duration from the market at a rate faster than the market is creating it, then we want to be on the bullish side of that trade. Our US stock accounts are nearly fully invested."
I would agree with this comment. I don't think the additional easing was required and we will pay for it through higher inflation down the road. But it could be that really is the plan. Devalue debts through higher inflation and help the economy outgrow the debt - it's certainly easier than paying it off, especially when you have the reserve currency.
DeleteBut I don't think that's anything we have to worry about for a few years still. I see stocks as much higher before inflation becomes a concern.
'As of Friday, our estimates of prospective return/risk for the S&P 500 have dropped to the single lowest point we’ve observed in a century of data.'
ReplyDelete> It must be some very convoluted logic that gets the S&P more overvalued now than it was say in the 2000 buble or the 1928 peak. Especially since (as I posted above)the the market P/E lower than it's been almost anytime in the last 20 years.
Nat Gas doing its thang.
ReplyDeleteShanghai gave back most of its September 7 gains last night.
ReplyDeleteNSPH CEO response:
ReplyDelete"No planned offering. Just a standard shelf registration that virtually all companies keep in place." - Bill Moffitt at NSPH
NSPH - Pleasantly surprised, not as bad as I imagined might happen. Maybe I shoulda kept my $3.05 bid...
ReplyDeleteTVIX - This thing's right at it's 52wk low, is insurance cheap here or are we going to see more of the same (complacency?)?
ReplyDeleteNSPH - Kisses the trend line then having met thiss obligation moves back to it's sideways business, it seems?
ReplyDeleteA green ending is what I'd like to see, else prepare to add in coming days.
FD: I only own a small amount that I'm planning on holding longer term. This year I've missed out on some larger gains in the market in stocks like SVNT or MITK because I got too impatient and because my position was too large. I like the story behind NSPH a lot and would like to just hold a smaller piece for a while. I'm interested in seeing how many placements they have this quarter and next. I suspect, being a biotech, they could have a big spike up or down based on FDA approval/non-approval of the other tests they're pursuing. If it's a spike down it would be good to not have a big position in it and therefore have a clear head when deciding to add more. If its a spike up then obviously it's good to own some and wait for the inevitable pullback.
DeleteNG - Tank-a-rooni.......
ReplyDeleteEasiest pair trade of the year. Long 49ers/short Raiders.
ReplyDeleteLeaving for a 2 day Oregon round trip this morning. Parents moving into a retirement community up there.
ReplyDeleteSounds like a nice drive.
DeleteI'm taking Kendra with me. It should be fun. She travels pretty well for her age.
Deleteahhh someday i'll be able to spend my summers in the nortwest.
Deletehave a safe trip up there Mark. love it up there.
DeleteWow, what's holding this market up today?
ReplyDelete$40B/month?
DeleteYeah, how's this for funny...We've been talking about the Fed here for years, and yesterday in line at Safeway was the first time EVER I heard people talking about it. They even mentioned the $40B per month.
DeleteHa, I've heard some people talking about $40M, others $40T, and still others about $40B
DeleteLOL, How much is enough, I just wonder if it's gonna be sufficient???
Silver - There goes $34.48, can she recover?
ReplyDeleteDavid, thanks for the comments above regarding treasuries. The rally in TBT last week didn't seem logical given the Fed's comments and the link between mortgage rates and treasuries.
ReplyDeleteWNC looks like an excellent buy on the charts and valuation-wise. Trades at 7.5 times earnings for this year. Competitors trade at 12 to 17 times earnings. I think this could get back to old highs within a couple of years.
ReplyDeletehttp://www.minyanville.com/trading-and-investing/options/articles/255EGSPC-spy-255ERUT-fed-fed-policy/9/17/2012/id/44056
ReplyDelete"For a quick history lesson, the last time short interest was this high and rolled over, it sparked a 30% rally in the SPX and more than 40% rise in the Russell 2000 Index (^RUT). Could we be looking at another rally like that now? I wouldn't bet against it."
I'm biased, but I think YRCW is one of the best charts out there. i know CP likes OBV...that is looking quite bullish.
ReplyDeleteI see that AUMN is still hanging about $5.75 today. This confirms, in my mind, the fact that it is pinned at that price only because people are still hoping to buy shares from Wells Fargo at $5.75. Once that possibility evaporates, AUMN should jump back to where it should have been without this offering, above $7. So I bought 60 more contracts today of April $2.50 calls at $3.50, raising the money for this purchase by selling 2000 shares of GMO at $3.18 and 2200 shares of AUMN.
ReplyDeleteHere is a response I got today from Golden Minerals about why they chose to sell shares rather than borrowing money:
ReplyDelete"A number of other alternatives were evaluated for Golden's financing: senior debt, convertible debt, offtake agreements, silver/gold streams and project financing. These other options were found to be too expensive due to high interest rates, potential equity conversions, hedging requirements and restrictive covenants. The other options would also have added financial risk at this early stage of the company's development plans at Velardeña. The equity financing was found to be the most favorable option."
Ha, I recall in the mid 70's when lakefront lots around here could be had for between $5~$7k and banks just refused to provide loans on such "risky investments".
DeleteThose lots are now worth at least 100x more and climbing.
$40B - Looks like we're in need of another infusion.
ReplyDeleteWhat kind of people write the news nowdays? Here is an opening line I just found:
ReplyDelete"The American stock market lost its momentum on Monday as enthusiasm from the rollout of the new quantitative easing program (QE 3) was overshadowed by bad news from Europe and a disappointing Empire State Manufacturing Survey."
They continue:
"The Empire State Manufacturing Survey for September was released on Monday morning by the Federal Reserve Bank of New York. The survey indicated its second consecutive decline as the general business conditions index slipped another five points to negative 10.4. Economists had been expecting the index to increase to negative 2.0 from August’s negative 5.8. A result below zero indicates contraction."
Doesn't this just increase the expected duration of Fed MBS purchases? So why are PMs selling off? This looks like such a fake...
What besides paper instruments of questionable value and possibly high-end garments, does The Empire State manufacture?
Deleteso do we all think things are getting better or worse in the middle east? anyone buying today's pullback in crude?
ReplyDeleteMy perception is Israel cannot attack Iran outright without adversely affecting the quality of life in present day Tel-Aviv.
DeleteIMO, Israel should pursue other ways of neutralizing the threat posed by Iran, I prefer the idea of a well placed sniper.
How much longer does Syria's leader remain in power?
Meanwhile apparently, Al-Queda infiltrates Africa and Arab anti-western unrest grows. Food inflation is at the root of the problem, I guess?
A nice rebound in SLV/GLD -- did they just try to shake out the momentum players, who jumped onto the QE3 train without really believing in it?
ReplyDeletewithout making any predictions, PHM needs a bigger pullback today or to pullback a couple of more days then its a buy buy buy on the next rally. Strictly technical using Landry's 102030 MA setup.
ReplyDeleteKatie Stockton post comments on Buzz and Banter. I can remember her post on there because she doesn't post that often. Her SPY target a few weeks ago was a low of 1440 and I think a high of 1470. Now she's thinking there may be a shallow pullback but she's targeting 1530 and she thinks that's where the market will have a significant correction.
ReplyDeletewasn't Katie bullish at the peak in 2011 and bearish at the peak in october of last year?
Deletecould be, i've only focused on her comments for this year. i don't remember reading her comments last year.
DeleteMAD just got big time bullish based on the Fed action. He's been expecting a pullback and was thinking the top was in for the SPY. He changed direction today.
Markman has been bullish since Nov of last year. In Nov he was expecting rollover and probably came within 2 or 3 days of closing his longs. He's been bullsih ever since.
GDXJ is down less than SLV right now -- it looks like people are starting to really like the miners...
ReplyDeletekind of looks like a mini head and shoulders pattern on NOK no?
ReplyDeleteI'm trying to URGE the wife to get the brokerage link account set up in her 401K so I can buy some CHUY. I need these shares sitting in an account that I don't look at that often and that's the one. I'm thinking just 200-300 shares.
ReplyDeleteI like this:
ReplyDelete"I try to avoid the news but unless you live under a rock, you probably now know that the government is going to dump 40 billion a month on mortgage backed securities until, and I quote, "the labor market improves." Many have dubbed this so called QE3 "QE-indefinitely."
Let's say they do this for a little over 2 years. That'll equal a trillion dollars. If a million dollars worth of 100 dollar bills fits into a grocery bag, how much would trillion be? Well, some quick Googling and it appears that a trillion dollars worth of 100 dollar bills on pallets would more than enough to fill a football field-stacked 2 high! If you do a little more Googling, you'll find out some other interesting facts. A trillion dollars laid end to end will go from the earth to the sun---and back. It really gets fun when you apply the number to other aspects. For instance, a trillion square miles would equal nearly 4 million Texas sized states but I digress.
So what does this mean? I don't know. The market will be the final arbiter. If the market goes up, I'm bullish. And if it stalls and comes right back in, I'd be very concerned. It's that simple. It's not the news, it's the reaction to the news.
So what do we do? We wait to see if it sticks. And if it does, we start buying on pullbacks. If it comes right back in, then we look to establish some new short positions. That's it."
Sounds like Landry and he's the MAN.
DeleteClosed my short NOK OCT 2.50 strike puts. opened at $.35 and closed at $.17. I'll look for an opportunity to sell those again.
Bought USO diagonal CALL calendar thingy, bot the JAN 35 calls at $3.08 and sold the Oct 38 calls at $.56. This is mostly a play on the middle east with a max loss of about $1000 if the Jan calls expire worthless. I was thinking about the fact that all I've read is BULL talk on everything which does concern me a bit so I decided to go with options on USO instead of buying USO outright.
PEIX - Anything else move up today?
ReplyDeleteNotice how well CHK has been holding up since Aubrey lost his board job.
ReplyDeleteSo tell me, folks -- why are you not piling into AUMN now for a short term trade, exploiting the temporary price suppression due to the new share offering?
ReplyDeleteI even wrote an article on SeekingAlpha about this opportunity, to let the small traders capitalize on this interesting share mispricing:
http://seekingalpha.com/article/872581-the-new-share-offering-by-aumn-creates-a-unique-buying-opportunity
Check this out, folks:
ReplyDeletehttp://finance.yahoo.com/news/golden-minerals-downgraded-reduce-hold-110429370.html
"TD Securities downgraded Golden Minerals based on recent dilutive financing."
You can find some more here: http://www.dailypolitical.com/finance/stock-market/golden-minerals-stock-rating-lowered-by-td-securities-aumn.htm
"Golden Minerals (NASDAQ: AUMN) was downgraded by equities research analysts at TD Securities from a “hold” rating to a “reduce” rating in a research note issued to investors on Monday. They currently have a $4.25 price target on the stock, down from their previous price target of $5.50."
What are those guys smoking??? If they had a price target of $5.50 on AUMN, then the fact that they were able to raise cash at $5.75 should increase their price target, right?
I am glad that some analysts disagree with my view of the stellar future for AUMN. If all of them were in agreement with me, then who would be left to buy it and propel it much higher? :)
I just checked and saw that I had an April 11th note from TD securities, where they said that they had a $16 12-month target on AUMN. So either the reporters are smoking something strong or TD issues random price targets with a HUGE variance...
DeleteAn interesting story about China:
ReplyDeletehttp://www.zerohedge.com/news/how-chinas-rehypothecated-ghost-steel-just-vaporized-and-what-means-world-economy
Maybe THAT'S why the commodities are selling off now and so is the Shanghai Composite?
Makes sense, I suppose. I prefer being cautious right now b/c I can, as opposed to being sorry.
DeleteHmmm, could this also mean there is a shortage of commodities?
DeleteI think it means the rehypothicated commodities used as loan collateral aren't in the warehouse like they're supposed to be. Sounds like fraudulent default, where the same items were sold multiple times.
DeleteWhere's your metal tonight?
CHL anyone? ON the weekly it looks like its just starting to rally off the bottom of the channel that's been in play since the middle of last year. It pays a 4.08% divvy.
ReplyDeleteI would guess a stop around 51.40 ish.
And the above is based on my FAST MONEY reads.
DeleteAnother Tim Seymour pick is CZZ, a Brazilian oil play. I like most of what i see on the chart except we are bumping up against resistance from April in the $15.30 range. Still, could also call it a cup and a handle with a buy point around $15.67 which is $.10 above the 52 week high set last week.
I would prefer to use a Landry entry which would be a buy trigger at $15.28, stop loss at 14.30 (I'm giving it a wider stop but no worries, we still control our loss with position size) and that gives me about 500 shares for a $500 stop loss. The pattern it's been following though is a drop for 4 or 5 days before it triggers a buy. It never hurts to have the numbers ready to go though.
If the SPY starts rallying again I'm going to increase my stop loss to $1000 or $1500 per trade. STEPPIN UP.
Somebodies Boyfriend
ReplyDeletehttp://www.marketfolly.com/2012/09/strategist-jeff-saut-on-philosophy-of.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarketFolly+%28Market+Folly%29
David,
ReplyDeleteI will grab the TD report and email it to you so you can see what they are thinking.
So, if the general public is still pulling money out of mutual funds and ETF's (Morningstar) and hedge funds are underperforming still in August (WSJ Credit Suisse) and short interest is at levels which have caused large rally's in the past (TOF) and pretty much every market progasticator is saying we pullback for a month or so, then rally into year end (and the consensus on this is incredibly high), what does the market do from here?
ReplyDeleteMy thinking is that most "smart" traders who want to play the pullback are already out of the market, selling recent highs. The general public at Safeway talking about the Fed doing QE may actually stop pulling money out of the market. This could lead to a lack of sellers causing the market to flatline for a while before continuing higher.
But, even as I write the above, I am couching my bets and thinking no way the market can continue higher from here without some sort of rest or pullback, so perhaps the market does that and just continues up. I know I don't personally have the feelings I get at market highs where I tend to be overconfident and think we are at a 1995 style breakout.
I can easily justify higher prices for stocks based on 2004 - 2007 type metrics, but very few stocks have been given these higher valuations since 2009, so for the market to go up, you have to believe people are starting to be willing to pay up for stocks.
Very confusing time - not sure if I should sell a few of my higher valued stocks or buy a few of my lower valued ones.
Even Cramer on twitter calling for a pullback:
Delete@jimcramer Will we get a pull back soon so I can get back in the market? jjc--sure feels like it
I guess it all depends on if China continues to cool, along with Europe. Spain should ask for financial assistance soon, this might improve the outlook and help put a floor under prices?
DeleteNice rebound in NSPH today. Lets see if it holds
ReplyDeleteI think it closes green, will be surprised if it holds the high area. I don't need it to move higher, I'd like to add around $2.20(somewhere under $3!), but can accept if it does move on up.
DeleteI'm in the same boat CP...small stake and looking to add more.
DeleteKOL - Consensus must be that China's cooling as of today?
ReplyDeleteOpened TBT @ 16.51.
ReplyDeleteOpened KRE @ 29.36.
OPened EZU @ 31.59.
Opened FXI @ 34.55.
Opened BAC @ 9.14.
I like the prevailing 'expectation' of a pullback. I also sense too few investors 'on board' right now.
DeleteI agree 2nd but I'm horrible at calling short term moves in the direction of the market so I place zero emphasis on my feeling.
DeleteWe received $75 from a friend to put toward my son's college fund. I have done a lot of research on plans to set up for him like the 529 plan, but they have lots of limitations in terms of investment options as well as annual fees. We're considering doing an IRA in our own names and putting him as a beneficiary. The downside is that if you pull the money out before retirement you get dinged with an early withdrawal fee. However, you get penalized with the 529 if you don't use it toward education (e.g., if my son gets drafted by the New York Mets in the 1st round out of high school) and you have to pay on average like 1% annual fees which over 17 years will add up to quite a bit. Have you guys done anything like this for your kids?
ReplyDeleteTOF, try to figure out how you can employ the child. Set up an IRA in his name and contribute 2k per year for the 1st 18 years of his life. Stop all contributions then and invested it in SP500. At age 65 should be worth bewtween $1 to 3 mil.
DeleteThe trick is how to employ your child. Maybe you should pay him photography fees and use his image on your web site.
I honestly think this could solve social security if we did this for every newborn with a transition period. The drawback of doing it yourself is that at 18 he can take the money out and foil the plan. Chow.
Whether to open a 529 hinges on whether you think your child will qualify for financial aid. If the answer is yes, then I recommend against opening an educational fund> the school will take the 529 money first, then calculate aid eligibility. Whereas keeping the money in the parents IRA, for instance, shields the money from being included. JMO.
Delete2nd - I have no way of knowing that given he is 10 months old. However, I think the IRA option is the best option from what I'm reading. You do get the early withdrawal penalty but in my opinion that is more than made up for by no fees and far more investment options.
Delete"More gains are likely as bearish investors give up and start buying, according to Laszlo Birinyi, president of Birinyi Associates Inc. in Westport, Connecticut.
ReplyDelete“They realize it isn’t working,” Birinyi, an equity trader for Salomon Brothers Inc. in the 1980s, said in a telephone interview. “The excuses of no volume and earnings aren’t going to be good -- that’s not happening, and maybe it’s time to join the party.”
I see AUMN is strongly lagging both GDXJ and SLV today, which is yet another confirmation that it is not trading freely now but is pinned by the new share offering at $5.75. So I just sold my remaining 430 shares of AUMN in my small Scottrade account and instead purchased 7 contracts of April $2.50 calls at $3.50.
ReplyDeleteI have now put up for sale at $1.21 the 5650 shares of PNPFF I have in that account. Once sold, will move that money into April AUMN calls as well...
I just looked at the PNPFF chart for the day and saw that it was above $1.25 today all morning. So I decided to raise my sell limit to $1.24.
DeleteI find when stocks do secondaries, the price gets held around the issue price until the secondary actually closes and the shares are issued. I think people are hesitant to pay more than the price as they feel foolish paying more for a share than the people getting the secondary are paying.
DeleteNSPH appears to be holding in very well. Love the trading today after yesterday's drop.
ReplyDeleteI sold my DMND at $20.6 today that I bought at $19.2 the other day. I'm hoping to reload lower or put more in NSPH should it put back some.
ReplyDeleteBought some AUMN at 5.82
ReplyDelete3 block trades at 5.80, 5.83, 5.82
David, nice to know your basis is around 5. For some reason I thought you bought $1 mil at 12 or 14 and were getting crushed. Happy to know your in the dark ah black.
There is a good chance its being pinned similiar to MCP awhile back.
WPRT has been under pressure, long and under water. May be worth a look.
T3d -- my basis is $5 for the recent purchases. However, all of my purchases combined have a basis closer to $10. And I never had $1 mil to invest into ECU or AUMN -- I believe I put at most $100K into ECU, then added a little more AUMN after the merger on the way down, and then started buying call options on AUMN as I ran out of money.
DeleteI'll try to calculate my exact basis now. :)
NG - Nearly back to trend line.
ReplyDeletePlan to open VEIEX and reopen VEURX at the close.
ReplyDeleteYRCW continues to hang on to its gains from the past week. I think it's gearing up for a mind blowing move higher. could be wrong but i see lots of positives:
ReplyDelete(1) 1st Oper profit in over 4 years
(2) no debt due for over 2 years
(3) insider buying
(4) new management team that are a bunch of straight shooters (listen to this presentation to get a sense for what i mean):
http://investors.yrcw.com/events.cfm
(5) trades at 0.01 price to sales vs 0.35 industry
negatives are they diluted the shit out of their stock, they have a ton of debt, they still have pension costs to deal with (altho these have been negotiated), not yet cash flow positive. however, i'd argue this is priced in and then some. $5 Billion in revenues, 2nd largest freight carrier...trades at $50 Million mkt cap.
Deletethis reminds me so much of FWLT, which skyrocketed after it was able to turn things around in 2005. went up from $4 to $80 within 3 years.
NSPH
ReplyDeletePresident and Chief Executive Officer, will present at the UBS Global Life Sciences Conference taking place at the Grand Hyatt Hotel in New York City on Wednesday, September 19, 2012 at 8:30 a.m. ET.
I finished my calculations, taking into account all my previous transactions in ECU and AUMN. As a result, I now have 44500 shares of AUMN at the cost basis of $9.
ReplyDeleteAt the end of the day, my 6500 shares of PNPFF were sold at $1.24, and I placed a buy limit order for 20 more contracts of April $2.50 calls on AUMN at $3.50, but the order didn't get executed today. If it gets executed tomorrow, then I'll have 46500 shares at the cost basis of $8.85.
I should have said: "if all my calls options get assigned to me, then I'll have 44500 shares of AUMN..."
Deleteheads up: all furniture makers were down sharply over the past few days:
ReplyDeleteETH
FBN
MLHR
PIR
In fact lots of domestic companies like those were down hard, including SCSS, BBBY
Maybe the investors are worried about the rising costs of raw materials?
Deletethen wouldn't the food companies be tanking too? CAKE, KFT, MCD, CMG looking solid.
DeletePeople need to eat and will not change their eating habits much. However, it is much easier for them to change their habits of buying furniture -- buy cheaper furniture at IKEA or use the old furniture for longer...
Deletenew post
ReplyDelete