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  1. >>THE MOST LEVERAGED JUNK to the cycle

    Zactly! At the start of the turn of every cycle, you want to buy the junkiest and the most levered. They have the highest operating leverage.

    I am sure they taught that in the Finance classese even at Kellogg? :0)

  2. strong sign to the tech market.

    People don’t pay attention to orders or earnings at TSM, they pay attention to capex…which is why the semiconductor production equipment (SPE) companies are doing well now after really lagging…8035 JP and 6857 JP

  3. The announcement last night by Taiwan Semi that they are significantly raising their capex budget for next year is very very string sign to the tech market

    RMBS is like buying MU or 6665 JP (Elpida)…they are all pieces of shit that don’t make any money and are therefore THE MOST LEVERAGED JUNK to the cycle!!!!

  4. Interesting stevie because today rates are rising (because of the jobs number and how it might point to a stronger economy) yet equities will also rally strongly.

    I guess the rules don’t apply all the time!!!

    Also, it’s tech catch up time!!!! Buy TSM, AUO, KYO, INTC, MU. Look at the charts, they’re all breaking out!!!!

  5. I actually think you need a weak (but not decimated) economy for equities to perform well; a strong economy will give the fed the flexibility to raise rates and will be bad for equities.

    These days, the relationship between equities and the real economy is inverted because of the Fed’s intervention.

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