Some pundits are proclaiming that the ERA OF DEAD MONEY is upon us.
If so, Consider:
Could this be the 1970's Revisited?
Well, if it is, you can forget about the OLD MoMo Plays, and the "new highs" list!
IT'S TIME TO LOOK AT THE NEW LOWS LIST:
The way to invest, 1970's style, is by "playing" the NEW LOWS LIST!
Because, in a punk market, the FLOAT SOMETIMES COUNTS FOR MORE THAN THE FUNDAMENTALS.
THE NEW LOWS LIST BECOMES THE PLACE TO TROLL FOR "BARGAINS."
Of course it's possible that there will be "sector plays" from time to time. But still, in this still over-valued market, even fundamentals can be dicy; ie selling on the news, etc.
YET, BUYING LOW AND SELLING HIGH IS SUPPOSEDLY THE NAME OF THE GAME. RIGHT?
But how do you tell an "unjust" new low, from a stock that's heading for Chapter 11?
Well, I guess, that's why the money managers get the big bucks.
How could you tell if Cisco, once $80, but now at, say $50, is a "bargain?" Good Question! (Actually Cisco is no where near $50, but you could have bought it for that "on the way down!")
Perhaps it's best to avoid the fads and high multiples, say over 30, with this approach.
JUST GIVE ME P&G AT A 52 WEEK LOW! I'LL BUY IT!
ANOTHER WAY TO PLAY OUR NEW ERA OF DEAD MONEY IS TO "INTERACT" WITH YOUR CAPITAL:
THAT IS TO BUY AND SELL SOMETHING OTHER THAN STOCKS AND PAPER ASSETS.
Like say Real Estate? VERY 70'S!
Collectibles? Hmmmm......for fun maybe, but to make REAL money? I don't think so.
THE SELF EMPLOYMENT ROUTE:
IT IS POSSIBLE TO START A BUSINESS AND "INTERACT" WITH YOUR CAPITAL EVERY DAY.....THAT'S REALLY WHAT "SMALL BUSINESS" IS ALL ABOUT.
Small Business people really CREATE THEIR OWN JOB! That is EXACTLY how it feels when you have a business. But, beware! Once you "create" your job it can become a demanding mistress!
True, you can come in a little late, and leave a little early on a hit and miss basis, but more likely you will be WORKING LONGER HOURS!
ANY SELF EMPLOYED PERSON WILL TELL YOU THAT THEIR "HOURS" ARE FROM WHEN THEY SIT UP IN BED IN THE MORNING, UNTIL WHEN THEY LAY BACK DOWN AT NIGHT!
And, even to do that sometimes requires "taking the phone off the hook!!"
Still, there is something satisfying about being in control--24.7.
And, Self employed people sometimes get their kicks differently than wage slaves.
For example, buying a new piece of equipment for the business can be as exciting to a business owner, as buying a new car is to a salaried person! I know, it's sick! But True!
And, "retailing" is a different mind set. You ask not: How much does this cost? But rather: How much can I sell it for!
Retailing at the "flea market" level is not much different than selling at the WalMart level, really. It's just the order of magnitude that's different. The fundamental mind-set is basically the same.
Selling "services" is essentially the same thing.
What's the difference between a prostitute and a lawyer? NOT MUCH!
A service is a service is a service.
Except, of course, that prostitutes get more "respect" than lawyers these days!
