11/13 newsletter
*** Market
Several major indexes are standing around the 3-year high level, preparing a breakthrough. I think the chance of moving up is much higher than moving down. Many corporates announced share buyback in the past two weeks. Insiders are clearly on the buy side. This should not be confused with a bubble high when most insiders are on the sell side (the public is on the buy side). With that contrarian operation, you probably will read a lot of negative reports about the market.
My portfolio is at +14.7% (since 12/1/2004), half point below the high established on 9/31. I have 2 weeks to go to finish my yearly benchmark (substract ~2.3% to get the YTD yield). SP500 is turning stronger than mid-cap and small-cap. It will be hard to beat it by 10%. November and December is the so-called window dressing time for Wall Street. Fund managers are eager to push up their holdings for year-end benchmark. It is like the last few seconds of a year-long race. Check your portfolio to see if it is doing fine...
--Steve
http://bible.gospelcom.net/passage/?book_id=47&chapter=25&version=31
PS. Pastor Chen gave a wonderful sermon on the Parable of Talents (we also did it in our Bible Study). There is one point that most people made wrong interpretation (including me and our fellowship). That is whether The Lord is a very mean capitalist. The truth rests in the scale of One Talent. One Talent at that time is about 10-year of a common person's wage. This is not a small sum. For a someone to give you that much amount of money to manage, you should be grateful of his trust, not grumbling about him giving another person 20/50-year of wage, etc. And why is the third servant called lazy? Because he did the least effort to manage the money -- he dig a hole and hid the money. How hard is it to dig a hole? Yet the other two servants managed to generate profit with businesses. Running business takes a lot of effort and risk, same as taking on a mission... And out of a gracious heart they did this to their Lord because they knew how much their Lord entrusted them.
What if the ventures failed (instead of doubling the money)? Will they still get a "well-done" from their Lord? This really depends on whether their Lord is a mean capitalist or a gracious King of Universe!
Several major indexes are standing around the 3-year high level, preparing a breakthrough. I think the chance of moving up is much higher than moving down. Many corporates announced share buyback in the past two weeks. Insiders are clearly on the buy side. This should not be confused with a bubble high when most insiders are on the sell side (the public is on the buy side). With that contrarian operation, you probably will read a lot of negative reports about the market.
My portfolio is at +14.7% (since 12/1/2004), half point below the high established on 9/31. I have 2 weeks to go to finish my yearly benchmark (substract ~2.3% to get the YTD yield). SP500 is turning stronger than mid-cap and small-cap. It will be hard to beat it by 10%. November and December is the so-called window dressing time for Wall Street. Fund managers are eager to push up their holdings for year-end benchmark. It is like the last few seconds of a year-long race. Check your portfolio to see if it is doing fine...
--Steve
http://bible.gospelcom.net/passage/?book_id=47&chapter=25&version=31
PS. Pastor Chen gave a wonderful sermon on the Parable of Talents (we also did it in our Bible Study). There is one point that most people made wrong interpretation (including me and our fellowship). That is whether The Lord is a very mean capitalist. The truth rests in the scale of One Talent. One Talent at that time is about 10-year of a common person's wage. This is not a small sum. For a someone to give you that much amount of money to manage, you should be grateful of his trust, not grumbling about him giving another person 20/50-year of wage, etc. And why is the third servant called lazy? Because he did the least effort to manage the money -- he dig a hole and hid the money. How hard is it to dig a hole? Yet the other two servants managed to generate profit with businesses. Running business takes a lot of effort and risk, same as taking on a mission... And out of a gracious heart they did this to their Lord because they knew how much their Lord entrusted them.
What if the ventures failed (instead of doubling the money)? Will they still get a "well-done" from their Lord? This really depends on whether their Lord is a mean capitalist or a gracious King of Universe!
posted by Steve at 9:24 AM
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