Sunday, September 14, 2008

Can't Relax on Weekend

The only thing I can say reading financial press today: WTF! Lehman going down, Merrill bought by BoA for a huge premium, oil is going down despite all damage hurricane Ike done. We are up for a huge selloff tomorrow morning.

One question my readers might have: why didn't I buy Goldman Sachs again when it hit $150? Answer: I don't like repeated (and misguided) research reports calling for $145 (or even higher) oil price by the end of the year. If it's just a research mistake, fine. I don't want to accuse respected (most respected by me, for sure) brokerage of pump and dump, but I can't completely ignore a possibility that Goldman still has a lot of money in oil and now is trying to recover it. I just can't ignore this possibility in my investment decisions. Even if it's much more innocent, even if some brokers at Goldman believe their own research and are buying oil right now, it's a red flag for me. I currently agree with Jim Cramer that only Wells Fargo, BoA, US Bancorp and, maybe, Wachovia are financial companies to (maybe) buy today. On tomorrow selloff, I mean.

Situation in Russia changed. Government is trying to stop stock market selloff by using all money it can, including government pension fund. Short term volatility should be huge, and I don't see much possibility to use options, so now it's not an investment opportunity for me, short or long. I don't think, though, that it invalidates my opinion of Russian market.

Couple more additions to the list of basket case countries:

Nicaragua: type 2
Honduras: type 2

Full disclosure: at the time of publication author did not have positions in any stocks mentioned. Positions can change any time.

Disclaimer: This article is not intended as an investment advice. Every person should make her/his own investment decisions based on all available information and advice from her/his own financial advisor.

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