Eeyore on the Run, Dow up almost 300
The Eeyore’s were on the run today. The Markets are going to need some time to settle it would appear but all of the doom and gloomers are a bit befuddled. What does this mean for most of us? Not a whole lot. Most people are not in a panic about the retirement funds or their holdings. The little guy is not selling off for the most part, nor going crazy buying either.
Overall, I give the individual for more credit than the news media does and they just can figure we all don’t act like idiots most of the time.
With the Dow up almost 300 points today it did put a stick in the spokes of the Bear unicycle for the time being.
Basically I think it is just some long overdue house cleaning. The good companies with solid earnings will probably continue to do well and the flash in the pans and those that are going along on a hope and a promise of big earnings are going to get whacked. Also, some of the Dinosaurs are going to become extinct if they don’t adapt. I can think of at least many examples in this category with two of them being GM and Ford. I think both could end up losing another 20% of their value shortly. But, we shall see.
While these two have been making strides, they really need to pick up the pace of change, cost cutting and just dealing with reality. If they don’t, their slide will continue and both may get no longer be in the top three and on the road to follow in the path of Edsel.
This goes for dozens of other companies that can’t or won’t change fast enough in the new fast moving economies of the world.
What this does is open up room for smaller more nimble companies that can change tactics, products and services quickly to meet customer and market demands.
This is where I see the best opportunity for growth. What new companies have a different way of doing things in some of the older more established niches?
Find them and you will be well rewarded. I will revisit this and give you a couple of examples that you might not have heard of. Do you have one that you think is a great play? Let us know and we will let everyone else know about it as well and let them know that you told them about it too.
Happy Investing
