Hedge Funds are Stupid $DJX, $SPX, QQQ, $VIX, $VXX

This market turn down will reveal how many hedge funds are really stupid with good marketing materials. They all have mega assets and are investing in the same short list of stocks. Which means no one is really smarter than the rest.

Just saying

George Gutowski writes from a caveat emptor perspective.

Stop being a Cartoon Fortunes to be Made $VXX, $SPX, $DJX

Yes the market crashed. Are you surprised? Remember the Bugs Bunny Cartoon where the cartoon character runs off the cliff holding an anvil and suddenly the laws of gravity take over. Stop beingĀ  cartoon.

Lots of great stocks on sale at very cheap valuations.

George Gutowski writes from a caveat emptor perspective

BlackRock vs Berkshire Passive vs Active with a dash of Warren. $BK, $BRK.B Larry Fink vs Warren Buffett

Barron’s Magazine likes BlackRock $BK. With good reason. The trend is to low fee ETF’s and BlackRock has a the market tied up. Hard to argue about the base case. Some more discussion on entry point is warranted.

The other end of the scale is Berkshire Hathaway. The exact opposite of passive they make large bets and are actively managed. They likeĀ Coke not Pepsi. They like IBM despite Warren Buffett’s publicly stated aversion to technology nuanced with his close relationship with Bill Gates. So far the cult has been happy. Buffett does have the golden touch.

So picking one stock vs another is an investing psychology behavioural tell.

If you invest in both are you schizophrenic and doomed to poor results?

George Gutowski writes from a caveat emptor perspective

Sotheby’s is the Canary in the Mine $BID

Is Sotheby’s the Canary in the mine. When the uber rich and millionaires all start playing auction games it frequently is the sign of a bubble wanted to burst. Auction business is pretty good right now. Reminds me of Warren Buffett’s quote about the stock market. the market is like sex the best part is just before the end.

George Gutowski writes from a caveat emptor perspective.

Confusing or Normal How Investors are Shaken, Stirred, Panicked, $FXC, $BOND, $OIL

Will sovereign debt cause the next crash. Probably. The US of A will not be immune. Trillion-dollar debt and no ways of repaying it other than default or inflation. Default is more honourable but politicians are involved so there you go.

When sovereign debt crashes investors will be shaken, stirred and panicked. They’ll stampede into hard assets like real estate, commodities, precious metals etc.

Hey Canada suddenly looks real good. Balanced Budget, big but not ridiculous debt, oil, gold, commodity, intelligent peace-loving people with a penchant for funded healthcare. Hmm may go long Canadian Dollar.

George Gutowski writes from a Caveat Emptor Perspective