Tao Economics

I haven't rapped on the blog here in a while. I can provide a lot of excuses, but I'll save you the details. Well it's been an interesting quarter in the market. If your company releases a report that doesn't make expectations than BAM! Your companies stock gets slapped down 10% to 20%. It's quite a site to see. Today it's Marvell Technology Group Ltd., the maker of solid state hard drives, an industry leader. Yesterday it was Staples. Both have low P/E ratios and positive cash flow. They are a better deal today than they were a few days ago. Are they worth buying? I have no idea, but they both pay a dividend that is much higher than what a U.S. treasury note will pay you.

This kind of thing has been happening all quarter. I'm calling it the silent crash as it's been happening over and over again, and on the opposite side any company that puts a raised expectation for the year, their stock shoots up. All of this is happening on low volume while folks over the past year have been dumping their mutual funds for bonds. I think this is a bad bet. Start putting together a watch list of your favorite stocks that have gotten beaten down, there just maybe something to them later down the road.

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What about gold and silver? They have been silent this year, and that's when you know it's a good time to quietly load up if you haven't already.

The message board is having fun. Da bear has a new report he's calling, "Da Bakk 2 Skoole Reeport". From da report:

If the stock market does what Jeffolie and some others think it will then it will have a crash bottom in 2014 which will be a HUGE buying opportunity. Similar to 1932 or 1982. Parallel to 1982: Reagan won in 1980 and then saw a stock low two years later. If Mitt wins this fall, and if the market drops into a 2014 secular low then he could ride the market up for the rest of his term and his entire second term.

Oh and Jim SinClair has been stomping his feet about making sure that the stocks that you hold are registered at the transfer agent. I agree, there is no justice now and you might just find yourself feeling like a MF Global customer one day.

That's it for now. I'll try and be better at updating the blog. Cheers and enjoy the rest of your summer.

-SN