China’s Stocks Drop Again
This column was originally published on RealMoney on March 1 at 9:36 a.m. EST. It’s being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
Don’t you think it’s amazing how quickly panic spreads? I always find it incredible, that way we simply can’t control our instinct to sell all those companies we liked so much last week.
I mean, do we really believe that Bank of America (BAC) should yield 5%? We must if we’re about to sell it here.
Do we believe that Goldman (GS) should sell at 8 times earnings? Yes, if we believe that the earnings are phony.
Do we believe that Alcoa (AA) will never get a bid? Or that Dow Chemical (DOW) is worth nothing now that it hasn’t?
I guess I have seen too many of these selloffs. I look at a Microsoft (MSFT) or a Cisco (CSCO) and I think, “Wow, nice sale.”
I don’t look at it as the 150% leveraged hedge fund manager anymore. Maybe I should pretend that I do. Would that be more valuable?
I’ll keep reiterating this until people are sick of it: Now that Treasuries are going to 4.25%, we are going to get a flight into dividend-yielding names and safety stocks, and the rest — at least momentarily — is for the birds!