Idiots listen to the yakity yak cnbc hax talking about 'mutual fund money comming out of cash into the market'
as if retailerz are electing this phenominon to happen by suddenly opening up a new mutual fund or calling their fidelity fund manager saying "buy stox now, get rid of cash, i need more stox in my 2030 agressive growth fund immediately".
Stox are being 'bought agressively' by fidelity mutual fundz because fidelity high net worth account managerz and rich dudez are 'agressively transfering' the stox that they bought in the 2008 Great American Shake, Bake and Bailout. They are converting their worthless stox into bernanke bux, which they can then use again on select stox at the bottom of the 2014 - 2015 financial market collapse. In 2016 they will buy back the surviving stox for 70-90% less then what they dumped them into the fidelity fund for - saying, "wow what a ride ! Glad we got off that frieght train and shorted those stupid markets in 2013.... Shakeups of key people in the SEC and at the treasury made that easy .... Those new guys dont have a clue."
Actually, this has been a shakeout in the reverse direction. As a general rule, the market move since November has transferred wealth from the few to the many. Of course, the collateral damage is that any sensible person now knows with certainty that the stock market does nothing to allocate investment capital nor create value. In fact, quite the opposite is true. It has come to function as a tax while simultaneously misallocating capital to those who pursue value destroying (at the company level and at the societal level) "growth". The collateral damage is hard to overstate.
Analysts pummeling INTC for its CapEx (which anyone with a friggen brain knows has committed volumes to underpin it, but that cannot be announced as yet) while rewarding Amazon for building distribution centers ('cause we don't have enough of those and building shiny new ones is a high ROIC investment...) show how pathetic and reflexive they have become.
Those who can keep their senses while everyone around them are losing theirs will do well...
Good post tech... I'm starting to think that amzn's short-run price will be based on how it grows rev rather than profitability. If so, then amzn could rally after the next report (more misallocation of capital). We both know that a day of reckoning is coming. What will be the catalyst of this day?