The great thing about the internet is that you can easily reveal douchebags, shills and frauds for what they are. I clicked on the Marketwatch site this morning and there before my eyes was a huge headline declaring Dow 20,000 on its way. Now that grabs your attention. I clicked the link and it led to the article below from James Altucher. I read his vacuous, non fact based, cheerleading, piece of shit article. It amazes me that the mainstream media actually publishes rubish like this. This guy is nothing but a mouthpiece for the Wall Street banking cabal. Whenever I read something as putrid and self serving as this drivel, I google the asshole’s name and see what he was saying in 2007 and 2008.
I hit the jackpot with this Jim Cramer buddy douchebag. Below are two articles giving his views on March 21, 2007 and on July 10, 2008. Shockingly, he was a raging bull on both occasions. How do you think his bullishness worked out?
He was recommending buying IBM, Intel, and Walt Disney on 3/21/07. If you had followed his advice, you would have lost 24% on IBM, 29% on Intel, and 47% on Walt Disney in the next 18 months. Pretty good for a Jim Cramer styled idiot. The Dow was at 12,447 on March 21, 2007. It fell 47% over the next two years.
By July 10, 2008 the market had fallen to 11,229 and this mental midget declared that everything was cheap and people should buy, buy, buy. OOOPS!!!! It seems the market had other ideas. The market proceeded to fall 42% over the next 8 months.
As you can see, this guy is a fucking investment genius. And still, the MSM will publish this crap by a perma-bull numbskull. If you believe that the DOW will hit 20,000 in the next year, you will need to leave my site immediately. I don’t need people on the site with IQs below 50.
Forget Your Fears: ‘Everything Is Cheap,’ James Altucher Says
Even as Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson testify about the need for new regulation while Lehman Brothers, Fannie Mae and Freddie Mac tumbling again, James Altucher, managing partner of Formula Capital, says “fear of the unknown” is obscuring opportunity for investors.
On an enterprise value/cash flow basis, almost “everything is cheap,” Altucher says, recommending investors buy index ETFs to get exposure to a market the author, columnist and investor believes is “dirt cheap.”
The Buyback Bonanza
James Altucher, Formula Capital 03.21.07, 2:34 PM ET
Here’s the thing I hate most about people who are permanently bearish on the U.S., our economy and our stock market: They try to find any excuse they can to make the point that stocks are going down.
For instance, let’s say companies are more flush with cash than ever. Let’s further say that corporate profits are a higher percentage of gross domestic product than ever before (which they are, at 8% of GDP). And finally, let’s say that stocks are so cheap that companies are using their excess cash to buy back their own stock? In other words, in a market ruled by supply and demand, the supply of stock available to retail investors is going down because companies are slowly taking themselves private.
You would think this is all bullish, right? It would seem to be a no-brainer.
Well, if you were talking to a perma-bear then you would be wrong. He would smirk knowingly and laugh with his friends how a “broken clock is right twice a day.” Referring to you, of course. You, the broken clock.
If you’re like me, you obsess in your head all day long about imaginary retorts you can make to such utter nonsense. But let’s forget that for a second and find the stocks that are slowly taking themselves private bit by bit with their massive cash hordes, enormous profit growth and share repurchase programs.
Next stop: Dow 20,000
Commentary: 10 reasons why the market will soar
By James Altucher
NEW YORK (MarketWatch) — The market fell like a brick on Wednesday. People can’t handle any piece of bad news without saying “this is the big one.” We have visceral memories of May through July 2010, just a year ago. We have visceral memories of 2008, when it seemed like no end was in sight. Nobody wants to be caught trying to catch that knife with their mouths like in a circus act. You get cut up that way, and the blood isn’t pretty.
But it’s not going to happen. Even God took one day to rest. The market every now and then needs a day or two to rest. Maybe even more than a day or two. But over the next 12 to 18 months I expect to see Dow 20,000 /quotes/comstock/10w!i:dji/delayed DJIA -2.22% .
Here are some reasons:
1) QE2 has not started. WHAT? You might say? I thought not only has it started last November, it’s about to end? Not true at all. Federal stimulus takes 6 to 18 months before even one dollar hits the U.S. economy in a meaningful way. So expect that $600 billion or more to start hitting toward the end of 2011.
2) Then why is the market going up? One major reason is because we are in the third administration of George W. Bush. The tax cuts got extended. This signaled that Barack Obama was going to pay lip service to his constituents while still keeping an eye on the stock market. The guy wants to get re-elected, after all.
3) Multiplier effect. Once the stimulus hits the economy, it’s not just $600 billion. It’s probably more like $3 trillion. How come? Because when you buy that coffee with $1 at the local deli, what does that deli guy do with it? He buys a newspaper? And then that guy buys a donut. The multiplier effect is up to 10X. To be honest, I’m more worried about a bubble in 2013 then I am worried about a economic slowdown.
4) Nonfinancial companies are at their highest cash levels ever. Almost $2 trillion dollars. They were hoarding the cash just in case bad times were going to happen again. Guess what? They didn’t. But what good is that? Well…
Dow suffers biggest drop in a year
Stocks plunged Wednesday, suffering their biggest drop in almost a year, as a slew of downbeat reports prompted fears the economic recovery was running out of steam. Dave Kansas, Dave Callaway and Dennis Berman discuss.
5) They are spending it. Stock buy-backs are at their highest levels in history. Let me tell you the rule of every market on the planet that we learned in Economics 101: Price is ruled by supply and demand. Demand has been down for the past two years. But that’s OK, supply is now going to start going down right when demand picks up. $2 trillion is a lot of supply of shares to scoop up.
6) What about unemployment? Well, according to the Bureau of Labor Statistics, temp workers are at levels not seen since before 2009. Companies hire temp workers first before they hire full-time workers. That happens in every recession in history.
7) Corporate profits are at their highest levels ever. Did you know this is the first recession in history where cash levels in corporate America increased quarter-over-quarter every single quarter of the recession? And now profits are at their highest ever. Analysts expect S&P 500 earnings to come in at $95 next year. What if (as usual) they are too conservative and the number comes in at $100. Slap in a 20x multiple (could happen when the stimulus kicks in), and we have an S&P 500 at 2,000 and a Dow probably at 20,000.
8) Major stocks are dirt cheap. Apple /quotes/comstock/15*!aapl/quotes/nls/aapl AAPL +0.37% trades for 12 times forward earnings and has $65 billion in cash and no debt in the bank. Microsoft /quotes/comstock/15*!msft/quotes/nls/msft MSFT +0.29% trades for around 10 times forward earnings. Intel /quotes/comstock/15*!intc/quotes/nls/intc INTC +0.23% trades for around 8 times forward earnings. These are high market-cap companies. By the way, all the major indices are market-cap weighted. So if the big guys go up, the indices go up. All of these big guys can easily double or triple.
9) Innovation. Barely a year ago the iPad came out. Now what’s the number of people who have iPads? 20 million? 10 Read 10 Unusual Things I Didn’t Know About Steve Jobs.
10) Major demographic changes are occurring that are going to affect stocks for the next 25 years. What are they? Check my article here next week. Or, perhaps more importantly, follow me on twitter where I engage in ongoing discussions on these things. Follow me!
The fight never stops between the bulls and the bears. Last summer was personally grueling for me. The market was falling on worries of Greece, an economy the size of Rhode Island, and every day it seemed a new blogger was using this as an excuse to write a blog specifically trashing me. It’s usually a bad idea to personally attack someone to get your point across. It’s never really necessary, and it’s lazy and bad writing. And yet, my kids would Google their last name, and there would be post after post insulting me personally for my opinions.
The market is up some 25% since then. My feeling for the next year is similar: BRING IT ON.