Mr. Sensitive

August 8, 2011

FSX Blitz

Filed under: Uncategorized — lbej @ 19:42

Yikes.  It was another fun day in the equity markets…for me.  I finished repricing my comic collection—up 9.8%—and I’m enjoying the gruesome spectacle unfolding on the backs of long-short fund managers.  Yes, I know that the 401(k) accounts of ordinary Americans are being depleted in this bear market, and that is unequivocally bad, in the short term.  Long-term, it may help us to move away from the privatized retirement model that we have been edging towards, and back in the direction of using the instruments of public power to take care of the needs of the public.  I don’t favor nationalizing private property, not at all.  But the public shouldn’t be more willing to depend on private corporations that they don’t control at all than on a government constituted as a result of free and fair elections in which they all can participate.  The mentality that dictates that entities controlled by the wealthy and operated to generate profits for them can be trusted to take care of people who have no say in their management is an idiotic one.  Separately, I’m still dumbfounded by the panic and disbelief gripping the financial pundits.  Yes, the S&P 500 has dropped a staggering 13% in five trading sessions.  But the reason for the drop—the overwhelming reason—is that stocks were overvalued beforehand.  And guess what?  They still are.  Remember, even after this epic sell-off, we are still 8% above where we were just last year.  And we are still more than 60% above the levels we plumbed in March of 2009, just a little over two years ago.  Much of the two-year rise has resulted from unprecedented liquidity injected into the markets by the world’s central banks, a tide that has begun to recede.  The worst performance since the financial crisis?  Technically true, but also incredibly misleading.  We would have to fall much farther to get back to the 2009 level, and I don’t think that we should or will.  The balance sheets of corporate America are in much better shape than in 2008 and 2009, and stocks should be higher than they were at that time.  Corporations have used the last two years to fortify themselves, as they ought to have done, but we gave them the opportunity to do so when the taxpayers rescued the financial system in 2008.  Don’t let the corporatists forget that when they complain about government largesse.

As for the Family Stock Index…we suck.  The FSX has plummeted 19% in the last week, something that would be more depressing if it weren’t so fascinating.  I’m not going to pile on anyone individually.  I’m just going to show a chart of the damage ordered by magnitude, and you can draw your own conclusions, at least until I’m prepared to draw them for you once again.  Today, at least, we weren’t all down.  Ruby was actually higher by 1.4% on the session, no doubt due to a spirited defense of her blog commenting practices.  For the record, I don’t resent anyone for their comments on my blog or the lack thereof.  Except Justin.  Here I am with Justin, telling him how I feel about his blog etiquette:

And here’s the chart you’ve been waiting for so patiently.

Name Ticker 8/1/2011 8/8/2011 Percent
Nicole B. NI $20.12 $18.27 -9.2
Dustin DST $50.27 $44.11 -12.3
Wilson WILC $6.34 $5.55 -12.5
Nicole L. COL $54.37 $46.95 -13.6
Ruby RBY $4.21 $3.63 -13.8
Reagan REGN $52.66 $44.96 -14.6
Charlotte ICE $122.12 $103.91 -14.9
Lisa LSI $7.38 $6.23 -15.6
Marcus MCS $9.74 $8.14 -16.4
Icarus FLOW $3.41 $2.79 -18.2
Mario T.Y. SUP $20.17 $16.50 -18.2
Jenny LEN $17.57 $14.14 -19.5
Marisa MOLX $23.17 $18.62 -19.6
Winston HWD $15.73 $12.62 -19.8
Mario T.E. PBY $10.55 $8.39 -20.5
Lulu LULU $62.15 $48.76 -21.5
Zero FRZ $3.00 $2.32 -22.7
Brinkley BCO $30.07 $23.16 -23.0
Katie CATY $13.94 $10.61 -23.9
Lee MSTR LEE -24.7
Justin WOLF $3.47 $2.60 -25.1
Zondro ZQK $5.22 $3.81 -27.0
Lucas LEI $2.71 $1.88 -30.6

1 Comment »

  1. I still don’t understand much about investing (actually none!). However, I do believe that the pundits/press make things worse with their doom and gloom scenarios. And, of course, everybody is blaming Barack. Where were these same people when George W. gave massive tax breaks (that I’m still waiting to see) and send us plummeting? I’m going nutso over the criticism. I’m not saying Barack is perfect – no politician is – but I do think he’s trying. With the Republicans and Tea Party, it could be a losing battle.

    Comment by Ruby Machi — August 9, 2011 @ 10:09 | Reply

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