Discussion in 'Business, Careers & Education' started by mikeman, Feb 2, 2011.
GM got it's ass kicked yesterday. I may take a nibble.
I have money on the side too. I am trying to figure out how to rebalance our whole portfolio since it has been a year and equities have done a lot better than our other classes. Tougher than I had imagined.
I think we'd need a catalyst to see a 10% downside move. The market just seems to loose steam every once in a while do to it being quite expensive. I've been buying some of my shittier performers, but no big bites, just nibbles.
I got a whiff of negative news out of China again. I think we're pricey right now and it won't take much, like some jobs data.
EDIT: I took a nibble on GM.
Nokia, Alibaba IPO.
Why do you say Nokia?
I'm not thrilled with the idea of Chinese bases stocks. There is just no transparency in that system and I think it's pretty gamed.
Why is Nokia Chinese? Oh you are talking Alibaba..(I agree with you on transparency , however Chinese stocks are not any worse than US stocks) market share speaks for itself. It is pretty tangible business that will be a decent pop in a first year.
MCIG has had an interesting ride recently. Pump and dump comes to mind but it has increased 700% YTD which is long in the tooth for a P&D scheme. Holding it is not for the non-gamble.
I don't agree with that. Chinese stocks are notorious for their false bottom reporting styles. Its not perfect in the US, but better than that.
I'm surprised its maintained a price in the 70 cent range. I had assumed it would have fallen back by now. Perhaps new money from speculators is at play.
I also follow Carl Icahn, that guy has been a golden goose laying golden eggs. Netflix, Forest Labs, Herbalife, and now Ebay....
If you're not getting a whiff of negative news out of China every day, you don't have a nose.
And I have to agree with idfnl vs. medwed on Chinese vs. American stocks. Not that there isn't fraud, etc. in the U.S. capital markets, but there's a historical/cultural baseline of transparency and regulation here that simply doesn't exist in China.
I hate to seem like I'm using the tactic of arguing from private authority, so take this comment with as large a dose of salt as you want. But when I was on the government teat, I did a fair amount of work on issues relating to Chinese companies seeking access to the U.S. capital markets. Some of what I came across -- even allowing for the fact that it was anecdotal and not necessarily a representative sample -- was so shocking as to be comical. It's not just about the truthfulness of corporate management and reported financials, but also about the veracity of bank statements and other things auditors and regulators rely on here to test and verify management's reporting. Again, all sorts of sketchy stuff happens here as well. But my personal opinion is that the underlying systems and cultural expectations are so wildly different that you really can't evaluate investments in U.S. and Chinese companies by the same criteria (or at least not with equal degrees of credulousness).
So, Chinese are not as sophisticated in deception, that is my take away from this conversation.
About to purchase another chunk of this ETF - VTI. Probably on Friday.
I wouldn't touch Chinese stocks. China looks like it is shaping up to be the next Japan.
If you want to play China in some way consider shorting Australian iron ore producers or Japanese shipping firms with significant exposure to Chinese demand.
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