March 14, 2013 Comments

Today, Thursday saw another good day in the markets.

Most of our stock picks were up nicely although nothing spectacular. Boston Pizza certainly had a good gain up 1.9%to  $20.99.

It is amusing watching the stock market television channels attempt to analyst the market. Is there a stock market bubble they ask? Really? since when does an S&P 500 trailing P/E ratio of 16.2 constitute a bubble? And especially when interest rates are at record lows. Yes, the stock market can always fall hard on bad news but it’s clearly not in a bubble. And the notion that the market should fall because it has reached a new high would defy a couple hundred years of history whereby the market always eventually surpasses its old highs and moves on. Though sometimes that takes a long time. And sometimes there are gut wrenching declines. But by what logic would we expect the market to necessarily fail to move past its 2000 and 2008 highs at this point? Maybe the market will fall but it won’t be because of a triple top or any such nonsense.

It seems like for years we listened to many commentators on television tell us we were in a long-term bear market. Now that the market has already risen and left these geniuses behind, now many of them are suggesting we are in a bull market. I have no use for such concepts. In fact bear market and bull market theories are just another form of sell low and buy high which does not make a lot of sense to me.

I am pretty sure that there is a strong negative correlation to watching stock market television channels and investment performance. They are just far too fixated on short-term matters.

I am often asked if one needs to watch their stocks very closely after buying. My reply is not at all. Firstly watching will not usually provide any clear signal. Secondly the effort should be on buying carefully in the first place.

I seldom ever watch BNN, although I am sure they have some good segments. Same for Bloomberg and CNBC.

I do record and watch Lang and O’leary almost every day. They have a good variety, great guests and are not fixated on micro movements in the stock market. And I always find Kevin O’Leary to be entertaining. I certainly don’t agree with everything he says but I do agree with a lot it. And I marvel at his quick wit. He is very sharp.