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September 4, 2008 11:42AM

The Big 3 (Yup, All Markets…try to stop me from getting bullish!)

By Cody Willard

Here’s what was weighing on my mind’s market today:

1. China’s Crashed: So Buy

2. ChinAmericanomics

3. More Horrible News: So Buy?

1. Coke buys a Chinese juice company for billions. Perhaps a stronger dollar will result in more U.S. companies getting aggressive overseas rather than vice versa? China’s stock markets are at multiyear lows and showing nary a bounce, btw. Then again, when headlines at IBD read: “Chinese Stocks Are World’s Worst In 2008,” we’re due for a big bounce.

2. Nothing’s immune to the domestic economic downturn that’s crimping demand around the globe. Corning’s (GLW) inventory pains are being felt by all those TV vendors that buy Corning’s glass to make the TVs and monitors the globe’s been buying. China, down 40% vs. our markets’ being down 20%, is, as I keep saying, a high-beta version of our economy and its downturn is gonna be much uglier than our own.

3. Whether it’s GM (GM) reporting 20% sales declines or Lehman (LEH) being forced to dilute shareholders even more…stocks seem to be going up on bad news. See the theme in today’s Big 3? It might finally be time to start putting some money back to work, at least for a trade…Cody, don’t you start trading again!

 

4 Responses to “The Big 3 (Yup, All Markets…try to stop me from getting bullish!)”

  1. Comment by Justin

    I dunno. Huge move down today. We might be in for our next leg down as the great deleveraging of 2008 continues. We never did hit my target of 12,000 on the dow. I’m tempted to get on the short side again, but I’m not completely sold on the idea that this rally has peaked. Obviously we will continue to trend downward for multiple years as stagflation sets in on a scale never before seen, but timing this market is a whole nother issue.

  2. Comment by Adam Miller

    Cody, you should start trading again. Although, fox biz might be the best place for you right now. You won’t have to go oversees for your “Blood in the streets” fund. Over the next 3 years there will be so many opportunities and interesting ways to play the market. What is going to happen to the financials? They have to recover eventually right? Sky high commodities, U.S. automaker consolidation, insane volatility- I’m not even looking at technology stocks anymore. Large cap companies will benefit, but we will have to be selective as buyers.

    I love hearing your stock picks and market sentiments. Keep posting.

  3. Comment by Travis

    Cody, I just cut my hair today (my wife told me to.) Don’t cut your hair because your ears are huge. I want to be a guest on your show since I told you you have huge ears.

  4. Comment by Conor

    Buy low-Sell high.

    It is hard not to be bullish when you have a investing timeline of 50 or more years.

    Cut your hair.

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