That Was The Week That Was-4th Week November

 

Is It A Computer Shell Game or New Currency? You may have heard of bitcoins being used online to buy things. But most us have never owned a bitcoin or used one. And a lot of us don’t know where the coins come from. These are not money in the traditional sense but created by people as currency through a mathematical equation and special computers. Bitcoins are traded in real dollars. To own one you need to get it from someone who does,and in January one bitcoin would have cost you $13.50. On November 27nd your $13.50 bitcoin was worth $1000. The experts, as reported in the WSJ on the 22nd, there are 12 million bitcoins in circulation with about 9 million yet to be discovered. I have no idea how they know that or who actually did the counting. The scary part is that bitcoins may actually become real currency in the real world. Today they can only be traded online but it may not be that long before they will traded in global currency markets. PS –There was news that someone who bought and stored millions of dollars of bitcoins on his computer hard drive forgot about them and threw his old computer out. Last heard he was at the dump searching for his old computer.

The Nasdaq collapsed in 2000 as the dotcom ‘King Wore No Clothes’ was unveiled for what it was. The index hit 3000 in 2000 and for years didn’t come close and now has kicked the door past 4000. Talk is of a possible bubble but  Mark Hulburt reported in MarketWatch.com on November 21th that any comparison to then and now was strictly in the imagination of the beholder. 

Cody Willard Echoes in The Cody Word ‘There is a bubble blowing bull market we’re in …but I don’t think the current market is about to pop as I think the fiscal and monetary policies of the current regimes in place around the developed world are set to blow these asset bubbles bigger than ever-before they crash yet again some day. Just not yet.’ 11/21

Willard also writes of the next big thing is ‘wearable computer bubble’. This is starting with the glass from you know who and they are already planning ‘stores to be fitted for their special glasses’. Also the watches and anything that someone can wear and is attached to the internet. All the major tech firms are competing on that future platform. Could be a multi-trillion dollar industry in 10-20 years, writes Willard.

The Fact That There is So Much ‘Bubble’ Talk Has to be more about leadership and political uncertainty than the stock market. 2013 has been the first year since the crash that there has been no major correction. Michael Sincere in his ‘Long Term Trader’, comments, ‘We need more irrational behavior to create a bubble.’ He also expects the DJIA to hit 20,000 before things go awry. He goes on to say that investors are not excited about the market and in fact disinterested. They are not buying stocks like 1999, or buying homes like 2007. Just before a bubble bursts almost everyone is an expert on the stock market and has an opinion and a favorite stock. Bubbles pop when no one expects. When Greenspan talked about irrational exuberance it took another 4 years for the markets to fall. Sincere’s writing 11/22/2013.

Went shopping at the Apple store- 10 AM and packed….before Thanksgiving….

Shortened Trading Week…

Finally: Robert C. Doll, CFA, Nuveen Asset Management in his weekly newsletter, ‘ A key development is the apparent acceleration in the growth rate of the S&P 500 revenue and earnings. Although one quarter does not make a trend, the third quarter marked the first time in six quarters in which revenue growth moved out of near zero range. More data is needed to confirm an inflection, but an improvement would support higher stock prices and take the pressure off of multiple expansion.’

Questions call Paul @ 584 295 0430 or write him at pstanley@westminsterfinancial.com. Share this blog with someone who cares about their money.

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