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Do The Best Have Traction?

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This week even the best are now struggling.

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This article was written by Minyan Peter, author of other popular articles such as Still in the Cards and Discover's Goodwill Hunting.

An observation I wanted to share:

I don't know about anyone else, but the beginning of this week has been very interesting.

Over the weekend Barron's wrote that Berkshire Hathaway (BRK-A), the best company in its space, was overvalued. Then Goldman (GS) reported, the best in its space, and it wasn't enough. And then Best Buy (BBY), the best in its space, reported, and it, too, was not enough. And judging by the open, even FedEx (FDX), the best in its space, is struggling to open up after its numbers this morning.

My point is this: Up until now, it has been easy making money with pairs trades - taking the best and worst in class (Circuit City (CC) versus Best Buy, for example) and shorting the weak while going long the strong. And, at least to me, that defines the beginning of the market topping process. This week, however, even the best are now struggling (and you could easily add to the list India and China for that matter).

I, for one, am now wondering if Berkshire, Goldman, Best Buy and the other "bests" don't have traction.

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Position in BBY and FXI.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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