this week: GE and WFC

The highlight for last week was the GE (general electric) rate cut

But, more importantly, the financials were up. Personally I believe that all financials are underpriced. Why?

Warren Buffet still owns Wells Fargo (WFC) - One would think, the worlds richest man would really notice if something were wrong with a stock. He deals with billions of dollars. If he knew something, he would have sold out by now. [this also apply to general electric stock]

stock correlations:

-->BAC is operating on (+/- 10 percentage points) 60% of Wells Fargo. Example: if WFC goes up 1.00 dollar, expect BAC to move up 60 cents. Strange huh? I imagine there are hedge funds behind the workings of this. 

P.S.
The general public is out of panic. There tank is empty. This is America, the people are ready to move on and clean up this mess.

P.S.S.
I, do though fear Europe. I have heard some terrible news in regards to that continent. Keep an eye on BBC.com , because I think they would be the first to catch onto any movements because of there proximity.

Do you want good culture?

DUBANDBOBBY.BLOGSPOT.COM 

investor sentiment: Processing Information

From an investors standpoint, the last few weeks have been monumental. Never have I dealt with something of this magnitude. I have gone through many investments, actually, at the pace I have been trading these last six months, it will surely out-due anything I have achieved in even a years time. Finally, though, I have had an epiphany:

The markets will rebound

why?

Because people are judging every investment, every marginal money decision on the news. Animal spirits are in full throttle.

but, then a diamond in the dust appears, a news article like this: Government to Tamper with Mortgage debt holders
(the government is backing the equity the markets)

This brings me to another tangent: Processing Information

Do a serious self-assessment on yourself. How do you absorb news information? Are the citations, quotes, authors, and sources worthy? Filter out some of the daily rubbish. Remember, news papers, radio, and television stations have to fill space. Say, for example, Katie Couric has nothing to talk about tonight. How will they fill the space?

Example solution: "Katie" says her producer, " lets talk about how bad the economy is!"

One day of information (only a few sources):