
Light Fridays Reads
Just did some light reading today. There is a common theme amongst investors and traders that I am seeing. From my experience, a company can be firing on all cylinders and go down 70%. When a stock goes down on a report, my first thought is "ah guidance", so I usually take a look at guidance, then I check to see if they beat current quarter on each metric. No, a miss does not make me sell the name. But a fundamental shift in the business (like I saw with FSLY, and their poor management skills) that is a sell indicator for me. I do not own that company, but from the moment they pre-announced that news, management got put into the penalty box for a while per my investment strategy. I will stick with CloudFlare, I believe their management to be superior in many ways based on what I have seen and read. I weigh my strategy pretty highly on management, if I had to put a percentage on it, it would probably be 45%. I am not sure why I did not short it, technicals were ugly and it was there. Maybe it was the fact that in the back of my head, that stock is a MOMO stock and one turn on a day could go up 20%. I continue to stay fully invested into NET, BL, LMND, ZBRA. I think this is a well-balance approach headed into an election and the next 5 years given each industry and their prospects. I hope everyone has a great weekend. I will be changing poopy diapers.
Consumers increased spending since the summer
Consumers boosted outlays on autos, clothing, healthcare, and entertainment services
Mostly among households that saw limited job and income losses…
Loan amount lowered to $100k from $250k to help small, midsize businesses, good.
The Fed will purchase 95% of eligible loans made by banks
Fed officials warned that the economy will face a more uneven and difficult recovery without additional direct aid.
Lockdowns in Europe and rising COVID cases, no agreement on a second round of stimulus, shake the markets
Government debt and gold, have not acted like the safety net investors are accustomed too
Cash was the only thing protecting you, and you aren't getting a return on that
Some investors say that yields cannnot fall much further after a yearlong slide, driven by low inflation, loose monetary policy and an aging population.
Government bonds are not sufficient enough to protect a portfolio.
I love to utilize Ed Yardeni's website, very good data. https://www.yardeni.com
https://www.wsj.com/articles/ecb-signals-further-stimulus-ahead-11603976353
https://www.wsj.com/articles/us-gdp-third-quarter-2020-11603908566?mod=hp_lead_pos2