Gary Gordon Blog
A Short and a Long Stock Idea. Or, This Schizo Stock Market.
Amazon is an amazing company in many ways, but one of the most striking is its business model. Amazon has been a retailer for 24 years. It is no longer a teenager. But it acts like a teenager, focusing constantly on growth rather than maturing into a near-term profit maximizer. I call it the “Amazon Syndrome”. But what if a company doesn’t have Amazon Syndrome? What if it focuses on making money? This schizophrenic market treats it very differently. In this piece I am going to talk my own book and suggest an Amazon Syndrome short – Wayfair (symbol W) – and a discarded profit-making long – MGIC (symbol MTG).
My Advice – Steer Clear of “Alternative” Investments. Rather, Overweight What They Are Buying – Stocks.
The Federal Deficit: A Boost to Stocks Now, A Big Risk to Stocks Down the Road.
The federal government deficit got a nice boost from two recent Congressional actions, as you all know. First, Congress passed a package of tax cuts focused on businesses that could add up to $1.5 trillion to federal deficits over the next ten years. Then it passed a budget bill that adds about $150 billion a year in military and social spending. That’s about $300 billion a year added to the federal deficit. Remember the Tea Party? Me neither.
The end of an era. A new one to begin. And a parting gift (hopefully).
But all is not lost. I have received funding from a coalition of Kurdish, Catalonian and Scottish separatists. I have established residency on the Isle of Man, and access to underground servers in Manchuria. As the Lord is my witness I shall arise, phoenix-like, with another blog. In about two months. Stand by, and weather the next two months as best you can.