Thursday, January 29, 2015

The equity market today... what a relief...

While by no means providing any reassurance that the drop is done, today was a relief from the recent declines.  Owning Qualcomm and Yahoo(aka 85% BABA which had a very bad day) did not help the day here, but otherwise it was positive to see the big diverse banks partially recover from their losses yesterday, plus Goldman and Morgan Stanley completely doing so.  Boeing continues to take off, steel stays strong, Fiat Chrysler is beginning to move faster, and McDonalds got a big Mcbounce from bouncing their CEO.  Twitter just seems to be slowly melting, but the guess here is that it will eventually just provide another new good entry point.  The brand seems too ubiquitous to not find the creative people and the engineers to make money off of their franchise.  Facebook faces an uncertain open, but the bet here is that it goes up despite its Amazon-like approach to expenses.

Tomorrow will be interesting, and important to see if today's performance carries over or just stabilizes.  That's the short term view while the long term is the much more important big picture that needs to be understood, or underpinned by a point of view.  Are my young millenial daughters intuitively right in maintaining 50% or more of their financial assets in banks and low yielding short term bond funds?  That's an important question, as the adage of only having the inverse of your age in equities is surely not followed here.  Should it be?  Should aspiration slow down and settle for what's already been achieved?  And then there becomes the question of how much in capital gains taxes one wants to pay.  These will be substantial for the 2014 tax books here.

So much to think about, but lucky to be able to think about it.

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