Love For Sale!
Good morning and welcome back to the Valentine's Shack. I scribed a morning vibe that touched on our journey towards intelligent financial decisions and our task at hand in getting there. It spoke to the long, hard road and the potholes that exist, both in terms of the structural imbalances and a media oligopoly that defines "value" as a function of ratings and advertising revenue. Heck, I even delved into the disconnect between what we're told and what we see, a dichotomy that remains unspoken for as long as our screens are green.
But forget all that. It's Valentine's Day in the city of critters and the mood is one of mindful appreciation. It's in that vein and with that mojo that I'm gonna take our walk in a different direction. I strive to add value, as always, but as the Buzz & Banter will feature our "nuts & guts" financial stuff, allow me some creative license as we edge into the heart of the matter. It is, after all, Turnaround Tuesday in a big red way.
- The White House told us yesterday that we've officially turned the corner from economic recovery to sustained expansion. Verbal Viagra anyone? Remember, Minyans, honesty and communication is the basis of any healthy, longstanding relationship.
- I just gotta ask, Dick, have we finally found weapons of ass destruction?
- Home may be where the heart is but the Homies might be heartless today. With KB Homes offering further validation that real estate has cooled, HGX 260 is seemingly ensconced as a level of mass contention. With the index off a quick 10%, that might not be today's trade. But given the mania we've seen since this housing bubble began, it's something to noodle as we take stock of the consumer's role in future spending patterns.
- Meanwhile, at Heartbreak Hotel, I got stopped out of my short IBM trade yesterday near the opening (and just in time for the 2% downside reversal). We know looking back prohibits forward profits so I won't dwell on the corks or forks. Suffice to say that a crayon, rather than a pencil, might have kept me in the trade. So be it.
- Circling back to the White House, yesterday's economic review also informed us that the negative U.S savings rate (at post-depression lows) and record trade gap are no cause for alarm. "We don't save too little, other countries just save too much." Exsqueeze me? There's a serious gap in that logic. And I'm not talking about a Michael Strahan sized gap, I'm talking Bristol Hotel (room 515) size gap.
- And finally, as this morning's column is turning out to be a quickie (it is Valentine's Day), I wanna take a moment to share some love with three very special women. Grandma Dorothy, I love you more than words can express and I know Ruby is showering you with white light from above. Mother Carole, you're a superstar and I'm sending vibes to you in Santa Fe. And Queen Vanessa, thank you for being you and making me a better man. You're the greatest.
Good luck today.
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