June 2008

  • The Only Constant is Change

    Change is constant.  Learning to respond and adapt faster and better is
    one of the foundational keys to success.

    Bill Gate VideoOne of the best illustrations of that in business has been the story of Bill Gates and Microsoft. 

    This week, was Bill’s last as a full-time Microsoft employee.  So, there was a lot of hoopla.

    This video is interesting, and puts his contribution in perspective. 

    It is worth watching.

  • The Only Constant is Change

    Change is constant.  Learning to respond and adapt faster and better is
    one of the foundational keys to success.

    Bill Gate VideoOne of the best illustrations of that in business has been the story of Bill Gates and Microsoft. 

    This week, was Bill’s last as a full-time Microsoft employee.  So, there was a lot of hoopla.

    This video is interesting, and puts his contribution in perspective. 

    It is worth watching.

  • Market Commentary from June 27th, 2008

    The Dow lost almost 500 points in the last two days.  Longer term, the stock market has been down sharply since May 2; in fact, it has been down five of
    the last six weeks. Several commentators note that the Dow experienced its worst June since 1930.
    Moreover, with this decline, it has also given back all of the gains it made since September, 2006.

    080627 Dow Low Divergence 600p

    Also worth noting is that the Dow just made new lows for the year, entering “Bear Territory” by sinking more than 20% from its October peak.  However the MACD’s downward momentum did not make new lows, even while the index price plummeted. 

    Perhaps more important, though, is that the Index broke below its 28-Year Up-Trend line.

    Dow 28 Year Uptrend 630p

    Also, Bespoke had an interesting chart comparing returns of various international indices.  Here it is:

    0806 Global Return Comparison from Bespoke

    Finally, here are a few of the posts I found interesting this week:

    And a little bit extra …

    • Trading Desks Turn to Video Game Technology to Speed Analytics. (Wall Street & Technology)
    • Your Money and Your Brain (Phil’s Favorites)
    • The Petabyte Age: Because More Isn’t Just More — More Is Different. (Wired)
    • The New Name Game: Internet Naming Rules About to Change. (CNN)
    • Will Brain Downloads will make lessons pointless? (Telegraph)
    • The Philosophy of George Carlin (Financial Philosopher)
  • Market Commentary from June 27th, 2008

    The Dow lost almost 500 points in the last two days.  Longer term, the stock market has been down sharply since May 2; in fact, it has been down five of
    the last six weeks. Several commentators note that the Dow experienced its worst June since 1930.
    Moreover, with this decline, it has also given back all of the gains it made since September, 2006.

    080627 Dow Low Divergence 600p

    Also worth noting is that the Dow just made new lows for the year, entering “Bear Territory” by sinking more than 20% from its October peak.  However the MACD’s downward momentum did not make new lows, even while the index price plummeted. 

    Perhaps more important, though, is that the Index broke below its 28-Year Up-Trend line.

    Dow 28 Year Uptrend 630p

    Also, Bespoke had an interesting chart comparing returns of various international indices.  Here it is:

    0806 Global Return Comparison from Bespoke

    Finally, here are a few of the posts I found interesting this week:

    And a little bit extra …

    • Trading Desks Turn to Video Game Technology to Speed Analytics. (Wall Street & Technology)
    • Your Money and Your Brain (Phil’s Favorites)
    • The Petabyte Age: Because More Isn’t Just More — More Is Different. (Wired)
    • The New Name Game: Internet Naming Rules About to Change. (CNN)
    • Will Brain Downloads will make lessons pointless? (Telegraph)
    • The Philosophy of George Carlin (Financial Philosopher)
  • Snap Shots

    In an effort to make this blog easier to use, I installed a tool called Snap Shots that
    enhances links with visual previews of the destination site, interactive excerpts of Wikipedia
    articles
    , MySpace profiles, IMDb profiles and
    Amazon
    products
    , display inline videos, RSS, MP3s,
    photos, stock charts and
    more.

    Sometimes Snap Shots bring you the information you need, without your having
    to leave the site, while other times it lets you “look ahead,” before deciding
    if you want to follow a link or not.

    Should you decide this is not for you, just click the Options icon in the
    upper right corner of the Snap Shot and opt-out.

    Hope you like it.

  • Snap Shots

    In an effort to make this blog easier to use, I installed a tool called Snap Shots that
    enhances links with visual previews of the destination site, interactive excerpts of Wikipedia
    articles
    , MySpace profiles, IMDb profiles and
    Amazon
    products
    , display inline videos, RSS, MP3s,
    photos, stock charts and
    more.

    Sometimes Snap Shots bring you the information you need, without your having
    to leave the site, while other times it lets you “look ahead,” before deciding
    if you want to follow a link or not.

    Should you decide this is not for you, just click the Options icon in the
    upper right corner of the Snap Shot and opt-out.

    Hope you like it.

  • Conspicuous Consumption

    Billion-Dollar Home 275p
    According to the 2007 Wealth Report, there are more millionaires than ever. (WSJ).  The report also examines the growing concentration of wealth by the super-wealthy.  So, apparently, the rich are getting richer.

    As the market worries about recessions, inflation, the strength of the Dollar, and the price of oil … I noticed a strange focus on conspicuous consumption. Here are some of the articles that prompted this post:

    • Lexus LF-A supercar priced from $200,000 to $265,000 (AutoBlog)
    • Eton’s “World’s Most Expensive Shirt” costs $44,740 (Trendhunter)
    • Don’t Get Wet; Davek’s $149 Umbrella will protect you from the rain (Davek)
    • Wall Street joint serves up a $175 Burger (CBS News)
    • For $150,000 You Can Have a collection of 50 Visionaire Magazine issues. (WSJ)
    • Flushing Money Away on the Million-Dollar Bathroom (Barron’s)
    • The first Billion-Dollar Home (Forbes)
  • Dubai’s new “Shape-Shifting” skyscraper — $3,000 per square foot (CNN & Reuters)
  • Conspicuous Consumption

    Billion-Dollar Home 275p
    According to the 2007 Wealth Report, there are more millionaires than ever. (WSJ).  The report also examines the growing concentration of wealth by the super-wealthy.  So, apparently, the rich are getting richer.

    As the market worries about recessions, inflation, the strength of the Dollar, and the price of oil … I noticed a strange focus on conspicuous consumption. Here are some of the articles that prompted this post:

    • Lexus LF-A supercar priced from $200,000 to $265,000 (AutoBlog)
    • Eton’s “World’s Most Expensive Shirt” costs $44,740 (Trendhunter)
    • Don’t Get Wet; Davek’s $149 Umbrella will protect you from the rain (Davek)
    • Wall Street joint serves up a $175 Burger (CBS News)
    • For $150,000 You Can Have a collection of 50 Visionaire Magazine issues. (WSJ)
    • Flushing Money Away on the Million-Dollar Bathroom (Barron’s)
    • The first Billion-Dollar Home (Forbes)
  • Dubai’s new “Shape-Shifting” skyscraper — $3,000 per square foot (CNN & Reuters)
  • Market Commentary from June 20th, 2008

    The March lows are in sight, at least for the Dow (and the Financial Sector is already beneath that level).

    Sentiment is getting more bearish.  And, the S&P 500 is set to have its fourth consecutive quarter of negative earnings growth.   Based on history, though, the market has typically outperformed its averages after earnings have been weak for this long.

    For your reading pleasure, here are some of the items that caught my eye this week:

    • Fed sending signals that rates aren’t going higher yet. (WSJ, FT, WP)
    • AAII Bear Sentiment above 50%, for 11th time in past year. (Bespoke)
    • Royal Bank of Scotland issues crash warning for stock and credit markets. (Telegraph)
    • Ex-Bear Stearns Fund Managers Arrested. (Bloomberg)
    • Short-Selling is tough, and good for the Markets. (The Economist)
    • Is the S&P 500 Index a good benchmark to compare performance against? (Infectious Greed)
    • “The Frozen Gaze” Op-Ed Column on Tiger Wood’s Focus and Mental Toughness. (NYTimes)
    • Obama 1st major party candidate to reject public financing and its spending limits. (NYTimes)
    • IBM Roadrunner is the new world’s fastest computer. (InformationWeek)
    • Philadelphia to Fake-Out Drivers With 3D Speed Bump Images. (Gizmodo)
    • Bad guys really do get the most girls. (New Scientist)
  • Market Commentary from June 20th, 2008

    The March lows are in sight, at least for the Dow (and the Financial Sector is already beneath that level).

    Sentiment is getting more bearish.  And, the S&P 500 is set to have its fourth consecutive quarter of negative earnings growth.   Based on history, though, the market has typically outperformed its averages after earnings have been weak for this long.

    For your reading pleasure, here are some of the items that caught my eye this week:

    • Fed sending signals that rates aren’t going higher yet. (WSJ, FT, WP)
    • AAII Bear Sentiment above 50%, for 11th time in past year. (Bespoke)
    • Royal Bank of Scotland issues crash warning for stock and credit markets. (Telegraph)
    • Ex-Bear Stearns Fund Managers Arrested. (Bloomberg)
    • Short-Selling is tough, and good for the Markets. (The Economist)
    • Is the S&P 500 Index a good benchmark to compare performance against? (Infectious Greed)
    • “The Frozen Gaze” Op-Ed Column on Tiger Wood’s Focus and Mental Toughness. (NYTimes)
    • Obama 1st major party candidate to reject public financing and its spending limits. (NYTimes)
    • IBM Roadrunner is the new world’s fastest computer. (InformationWeek)
    • Philadelphia to Fake-Out Drivers With 3D Speed Bump Images. (Gizmodo)
    • Bad guys really do get the most girls. (New Scientist)