Thoughts And Links

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As we work through a pretty slow day as investors try to get their bearings after yesterdays huge selloff, here are some things I’m looking at and thinking about:

  • A lot of stocks are cheap.  We aren’t dealing with the same kinds of ridiculous valuations we saw at the top in 2000.  For example, Disney (DIS) reported solid earnings after the close yesterday (DIS FY 1Q Earnings Release) and has popped 5-6% today.  But the stock is still cheap with a trailing multiple around 15.  How much farther can some stocks go down when valuations are reasonable?
  • One sector that seems to be speculative is agriculture as measured by the hugely popular Powershares DB Agriculture ETF (DBA).  It’s looking toppy to Kirk.
  • The speculative valuations and bubble could be bonds this time, according to The Capital Spectator.
  • Is the big move up in gold today forecasting a surprise rate cut by the European Central Bank tomorrow?
  • The oil market seems to be cracking as oil prices start to integrate a potential US recession and worldwide slowdown.  Today’s 7 million barrel build in oil stocks supports the idea of decreasing demand for oil (EIA Weekly Petroleum Status Report).
  • Financial television these days is Hot Ladies Talking Money With Bald Dudes, according to The Daily Show’s John Stewart.

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