Blogging is hard. I wonder if even the monstrous, fearless Paul Bunyan could master it. Oh sure, he could easily handle the lifehacking and workhacking thing. But could his bulky fingers handle the little, lonely keyboard?
Can’t believe nearly a week has gone by and I’ve not written a word. But if I had a dollar for every time I’ve written an entry in my head, well, I might could solve the current economic crisis.
Speaking of, allow me to introduce one of our (very few) FOK (Friends of Kirk) members: The Armchair Economist. He may fill in when this BlogStar is underwater.
Armchair Economist tends to speak in a strong voice, and now strongly recommends you read this excellent editorial by one of the Star Tribune’s editors. It’s about saving for the future, the current bear market, and the risk and speculation we all ingest every time we buy shares.
BTW, the Armchair Economist lives reclusively on a Midwest farm, and shows up in public only occasionally—and usually under heavy guard at the exclusive Rob Roy Club in midtown Manhattan. He won’t say from where he wrote this editorial.
Oh yeah, he’s also a bad keyboarder, so he keyboards ONLY in CAPITAL letters. Sorry for the annoyance; he means well.
MY FRIENDS AND COLLEAGUES:
I HOPE YOU TOOK A MOMENT TO PERUSE THE “BEAR WITH ME” ARTICLE. WHAT A GEM! SUMMARIZES SO MUCH OF WHAT I’VE BEEN TRYING TO SAY IN BETWEEN POUNDING FISTS ON TABLES. TO WIT:
FIRST, PLEASE NOTE THAT OUR WRITER IS NOT A RICH MAN OR WALL STREETER. HE’S JUST A GUY TRYING TO MAKE A BUCK.
SHORT SELLING IS EVIL: SUDDENLY, SHORT SELLING IS SEEN AS UNPATRIOTIC, BAD FOR CAPITALISM, & “GREEDY.” PISH TOSH! AS IF CAPITALISM ITSELF WERE WORKING RIGHT NOW! RATHER, WE ARE SLOWLY SOCIALIZING WALL STREET. AND MUCH MORE. MEANWHILE, THE ENTREPRENEURS WHO GOT RICH OFF IT FIRST SLIP OUT UNMARKED EXITS (WITHOUT EVEN YELLING “FIRE SALE!”) WHILE SNICKERING AND CLUTCHING THEIR CASH. MILLIONS, BILLIONS, TRILLIONS. WHAT A FARCE!
WALL STREET IS A “CASINO”: OUR AUTHOR MR. BANKS (WHAT A RICH NAME!) QUOTES POSSIBLE PRESIDENT MCCAIN AS SAYING THAT CERTAIN INVESTORS “HAVE TURNED WALL STREET INTO A CASINO.” WITH ALL DUE RESPECT, JOHNNY-COME-(NOT-SO)-LATELY, THE STREET HAS ALWAYS BEEN A CASINO. THE ONLY DIFFERENCE IS THAT MIRAGE HAS MANY MORE SCANTILY-CLAD WOMEN ON THE FLOOR, AND THEY SERVE STIFFER DRINKS! ONE MORE THING THEY SHARE: WHAT HAPPENS THERE…STAYS THERE.
BUY-AND-HOLD CAN GROW MOLD: GUESS WHO TAUGHT US ALL TO BUY AND HOLD? THAT’S RIGHT: THE SAME INVESTMENT PROS THAT ARE NOW TEARING DOWN THE WORLD ECONOMY. SURE, IT CAN WORK. BUT SO CAN TAKING A SMALL ALLOCATION AND PLAYING THE VOLATILITY. BUY AND SELL AND VICE VERSA FOR EVERY 3% MOVE THIS YEAR AND YOU COULD BE RICH. BUY AND HOLD THIS YEAR? YOUR 401K MAY BECOME A 104K. FOR THAT MATTER, THE DOW FIRST CROSSED 1,000 IN 1966. IT DIDN’T MEANINGFULLY MOVE BEYOND THAT TIL 1982. HOLD THAT THOUGHT!
IN SUMMARY, MY FELLOW INVESTORS, BEWARE THE BEAR. EXPECT MUCH BULL. AND FOLLOW NEITHER HERD.
GODSPEED, from THE ARMCHAIR ECONOMIST
BlogWriter’s Note: THE ARMCHAIR ECONOMIST has now left the keyboard and gone back into seclusion. But you can reach him though this website, if you dare.