INVESTING IN THIS ECONOMY, Part One.

Good Morning. I've been busy looking at all of the news and trying to make sense of it. Are there any buying or investing opportunities? I always look at AMD. It's been one of my favorite stocks for years. It's volatile and in most price ranges, it makes a good covered call stock.

Here are a few other thoughts:

  1. Today, October 25th, is the day with most earnings announcements. Most are very good. Microsoft came out with stellar news. They seem to be hitting on all cylinders. Even Tesla finally made a profit with the Model Three cars.

  2. October has traditionally been a very volatile month. Some of that has to do with many major sell-offs have been in October (1929 and 1987 of note).

  3. Here's something many people do not know. Mutual must sell stocks—read that bad stocks, or stocks that are down in value—before October 31st, in order for that fund to deduct/write-off that loss at the end of the year. We don't have to do that. We can sell right up to December 31st.

  4. Therefore, there is a sell-off of these stocks right at the end of October. There haven't been that many losers this years, but they are there. It's hard to figure out where these stocks are—one would have to know the workings of any particular fund.

  5. The other side of this, is that starting the first part of November, these companies start redeploying their money.

  6. Also note that, many Funds start cleaning up their portfolios—so they look good with better-looking stocks.

  7. More things going on: One guy said: "Burgers are not killing the planet."

  8. F, Ford is doing well—in spite of many recalls. The stock has climbed to the $9 range. Their stock has a dividend yield of 7%.

  9. Friday Morning: GDP for the second quarter just came in at 3.5%. That's really good.

ELECTIONS: 

  1. There are many good stories to tell. Usually the negative news carries the day, but this economy is doing well.

  2. The constant drumbeat of the negative press has made people anxious. It's hard to get at the truth with so much skewed news and opinions.

  3. The media seems to be cheerleaders for the lefties. I'm a died-in-the-wool capitalists. I believe in people, not government. I think the political and financial interest of our country are solved by the Free-Market System.

  4. GDP: A 1% rise represents about One Trillion Dollars of good and services.

  5. There are 7 million job openings. Many Business Owners can't find workers.

  6. Southwest Airlines (LUV) say's, "We're all following the news, now." Also, "Our views of the future are good." But, said he: "We can't see around corners." Good advice for all of us.

  7. Warren Buffett said, "I'M ALWAYS AN OPTIMIST." So am I. I think that even though there have be fluctuations, we should bet on optimism.

  8. But as one politician said: "If you can dream it, we can tax it."

The intersection of politics and economics is an important place to be and to study. I don't think any of use really understands the inter-connectedness of these two parts of our lives.

SEARCH FOR QUALITY.

Stock MarketWade Cook