The Real Money column I mentioned Friday has been moved to the (free) The Street.com side: Nine Stocks for Playing the Long Side Safely
Before you yell "Capitulation!," understand that this was in response to client requests. I continue to have
concerns about a laundry list of economic problems: inflation, slowing
growth, slow job creation, rising interest rates, the drag from
What led to this research and stock selection was a repeated request from research clients, managed asset accounts, and institutional traders, who have all asked some variation of this question:
"I am afraid this market is overvalued, over-extended, and
overdue for a major correction — but I want to play from the long side
(variation: I cannot afford to fall behind my benchmark). How can I
participate in a way that is relatively safe, but still allows me
The response we crafted was to quantitatively screen stocks for these characteristics:
1) Identify strong sectors with good money flow;
2) Screen for stocks with the best technical and fundamental potential;
3) Look for stocks within those sectors with desirable risk/reward characteristics;
4) Find stocks that are near good entry points;
5) Avoid the "runaway momentum" names;
6) Look for stop-loss protection that is a reasonable percentage downside away.
The column identifies nine firms, with entries, targets, and stop losses.
The stocks and sectors I picked, however, are more likely to outperform on a
relative (as well as on an absolute) basis, especially if the economy
slows further or slips into a recession. Our goal was to identify those stocks
that will participate in the upside, but at much lower levels of risk.
There is a video discussion here:
Nine Stocks for Playing the Long Side Safely
6/8/2007 4:44 PM EDT
While waiting for last night’s Soprano’s to start, I decided to pop in a DVD I had lying around: Steely Dan – The Making of Aja.
Since someone else is sure to bring it up in comments, let’s deal with the finale: Creator/writer/director David Chase made his bones adding a level of reality — Cinéma vérité — to his plotting and characters. He never liked neat endings, always leaves a level of ambiguity and uncertainty.
And while I didn’t love last night’s episode — it was just another episode, and not any way at all a special "finale" — I recognize what Chase attempted: He ended the show on a note of tension, uncertainty, and ambiguity. You know, just like real life. Hey, no one knows what will happen in the future, or what fate awaits us. He ended the show the same way . . .
Not that I really liked it — it was disappointingly slow, and except for Phil "Flat-Head" Leotardo, not a whole lot happened.
Where was I? Oh, yes.
Turns out its part of a series of DVDs titled "Classic Albums" series that aired originally on VH1. So, while waiting for the last episode to begin, I popped in this DVD I’ve had lying around.
– are just so damn good, it makes you wonder how the rest of their programming can be so goddamned awful. It was that much better than what you would expect from typical VH1 stuff.
If you are any type of Dan fan, you must go order this right now.
In fact, I was so impressed with the quality of the interviews, clips, and sound quality — I can’t recall the last time I did this — that, even as the DVD credits were rolling, I ordered four more DVDs (all $10 or less) from the same series.
I’ll update how these are at a latter date, but based on the Steely Dan DVD, and the high caliber of reviews at Amazon.com, I expect these all to be similarly excellent . . .