The Chrysler bankruptcy proceedings appears to be a mugging of the secured creditors orchestrated by Obama to give the company to the union. A good rule: never trust the government.
Some big banks are finding this out, too. BAC is rumored to need a huge infusion of common equity. This is the dilution I worried about in avoiding that stock.
The SEC is filing some cases for fraud and insider trading. So far the effort is anemic, but that's no surprise as its staff in practically on the payroll of the fraudsters.
Meanwhile, the junk bond market is roaring and seems wide open to new issues. That is hugely positive news for many small stocks which need refinancings to survive. I suspect that's part of the reason small stocks are performing so well lately.
Obama Fund is up 43% year-to-date. I guess buy and hold isn't dead as in investment strategy, but I do modify that with some trading to buy low and sell high on dips and rips. Obama Fund is benefiting greatly from the re-opening of the junk bond market as its cheap but risky companies are now perceived as less risky.
Fido Fund is up 45% year to date, showing that the gains are not tied to small stocks.
Both funds are about 100% long now as I've sold some bits of many positions after being 150% long around the lows. On a significant pullback, I'd go back to 150% long if fundamental news and outlook did not change.
Word of the Day
"Bespeak" - verb, transitive [$10]; past tense is "bespoke".
Bespeak means 1. engage in advance; 2. order (goods); 3. suggest, be evidence of (his gift bepeaks a kind heart); (literary) speak to. The usage #3 seems to be used when a thing is 'speaking'.
Sentence: Actions of the Obama administration bespeak racketeering tactics: force, pressure and intimidation versus the rule of law. I expect the judge - a government official - to bend over and let Obama have his way.
Le Mot du Jour
"Exprimer" - verb, regular -er.
Exprimer means to express. S'exprimer means to express oneself.
Le Phrase: Je veux apprendre exprimer l'idée, "I want another beer, please", dans six langues.
Sentence: I want to learn to express the idea, "I want another beer, please", in six languages.