Chasing Ford and Playing Disney
And a look at a couple ETFs.
Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial).
Hello from New York where, judging by my email, I've been remiss in staying in touch with you all. I'm not an "excuse" kind of guy... And any explanation beyond that would be dangerously close to offering one. I'll say this: Where once I was lost, now I'm found. Where blind I remain as unsighted as a mole.
Doing the best with what my creator gave me, here's what I'm watching and doing today and over the last few weeks:
- I bought Ford (F) this morning. Did I chase it? Yes. Yes I did. Do I feel shame about doing so? It depends entirely on whether or not I make money from the position. We learned two things from "We Are the World": 1. Scores of millionaire pop stars can somehow be ignorant of the magnitude of debt repayment; 2. "Check your ego at the door" remains good advice.
- Yes, I still own Gold, via the GLD ETF and oil via the USO. They ain't broke, I got stops and I've got that undisciplined Ford chase to make up for to keep baby in a new pair of shoes.
- The front page of today's Wall Street Journal features an article with bankers whining that they're going to be forced to collect stock options rather than cash for their bonuses this year. This bellyaching proves beyond a shadow of a doubt that being a talented banker is as fungible a gift as being a gifted ventriloquist, and your average banker is as tone-deaf as a German jazz quartet. You almost killed us all a year ago, banking community. Take your bonus and be thankful you're not subject to communal showering. Listen, suspenders, you're going to get paid a gazillion dollars in options, provided you can actually add value. If you don't like that trade, go fill potholes.
- Disney (DIS) hanging tough despite a valuation downgrade. Of all the variety of downgrades, I'll take the valuation variety for my longs all day long and twice on Sundays. Disney wins with a strong dollar (Americans can actually vacation) and a weak one (curiously groomed Europeans can stand in front of me in line at the painfully ironic "It's a Small World" ride). And, oh yeah, Bob Iger is a stud to the extent that I feel not the least bit self-conscious saying so in public.
- Back to Bankers: Once the President has called you all "Fat Cats" then, literally the same week, given Citigroup (C) a $38 billion tax cut you and I have to pay for, aren't all bets off in terms of apologizing for paying yourselves whatever you dang well please? If I'm running Citi, I'm plowing my tax cut into bonuses and providing the defense that "that's the kind of thing we fat cats do with our hypocritical tax breaks. Deal with it or move to Monaco."
- Yes, I'm comfortable both castigating and defending bankers in the same article. Admit it, you missed that sort of moral flexibility.
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