Don’t Get Caught in the Weeds!

We’ve been catching a ton of love for our call on Yahoo last week. We’ll take it when we can get it, as we all know the market seeks to humiliate as many people as possible for as long as possible. Sometimes we get lucky, and we’ll stay humble. In fact, today we were featured over at the stockadvisors.com website. Additionally, we’ve been hounded by one of our PR contacts to appear on CNBC today, discussing the particulars behind Carl Icahn’s interest in Yahoo. However, discussing the particulars of such and such stock isn’t really in our wheelhouse. If someone in the media has interest in our sector, style, or geographic ideas, then we might be interested. The Yahoo reco was a derivative of our move to technology recently. So, when Microsoft dropped their Yahoo bid a week ago Monday, it sort of fell in our lap as we prepared to publish our weekly Invest with an Edge newsletter. Early last week, our editorial department was interested in sharing an individual tech name that was poised to move higher, (as opposed to a tech fund (IYW or IGM)), and the name Yahoo kept coming up in discussions. So, with Yahoo down big after the MSFT bombshell, we jumped at the opportunity. That’s it, nothing more than that.

Certainly fact finding, analysis, and other research was performed, but it was the bigger picture notion of getting long tech that had us find a gem in Yahoo.

Be that as it may, now that the market is running, and after I queried our readers the other day about their level of conviction for this bull market, I discovered some alternative views in my Barron’s newspaper on a big pile next to my desk.

The current issue had commentary from Douglas Cliggott and Jeremy Siegel answering the question of: Will the stock market resume its rally?

Cliggott — “The next six months will be quite lower. We’re going to burn through these rebates pretty fast. By late in the third quarter demand data is going to be weakening again, and the next big earnings disappointment will be from tech companies. This is turning out to be a pretty classic cycle: First financials, then consumer discretionary, and then it broadens. We’re right at the “and then it broadens” point.”

Siegel — “I have trouble seeing it go much higher if oil prices continue upward. If oil prices stabilize or go down I do see it rallying. The economy is not going into a black hole; the only negative I see is oil prices.”

Good Luck.