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Goodbye Lulu, Hello Zillow
Howard Lindzon
May 17, 2017
Before we get started…this made me laugh today:
Now to the important stuff…
Last year the Washington Post congratulated Millennials for NOT buying homes.
Last week the Wall Street Journal declared starter homes for Millenials ‘the next hot market‘.
Based on the price action of $LULU and Zillow ($ZG), not the clickbait headlines, I would say Millennials are swapping expensive pants for their first homes.
So, I said goodbye to my $LULU shares today. I will not hold my losses against them. I will continue to spend on their man pants and overpriced tops.
I added some Zillow ($ZG) which is at all-time closing highs. My wife Ellen lives on Zillow. They have become a utility and a data porn site for real estate lovers. With the markets at all-time highs and so many breakouts in the leading internet brand names (USA and China), I have to sell weakness and own the strength (with my stock market money).
While Zillow does not fit in my mantra of being an 8-80 brand, millennials will likely live to 108, so I have created a form fitting mantra just for them…from ‘28 to 108‘.
Finally today…
Yesterday I took a crack at explaining the low $VIX and the relentless stock market rally.
Today I read this post from Josh that has a better explanation. My fave part:
The comical thing about the whole “Trump Rally” conceit is that while people have the effect right, they have the cause precisely backwards. Stocks are rallying because of how little faith we have in the government. The Mega Blue Chip Corporation is the new Sovereign. This applies in Europe and Japan just as neatly as it applies here at home – go ahead and look at their indices, this belief transference I describe is going global. Shareholders around the world are waking up to the idea that, despite the many and prominent failings of their respective governments, the universal “profit motive” has not let them down.
Our new gods – our American Gods – are the only thing left worthy of our love and attention in the current moment. And the Saints who guide us – Dimon, Zuckerberg, Cook, Fink, Page, Bezos, Musk, Bogle – have shown themselves to be far more worthy of investor adulation than Congress or the White House. For the 20% of Americans who own 80% of America’s wealth, these companies are the objects of worship.
The old objects of worship, and those who attend to them, have lost their power or their sanity.
PS – My fave Trump despiser is Tim O’Brien (now head of Bloomberg View), who had to spend years listening to his drivel for a book and three years fighting (than beating) him in court. He’s a ‘good guy’ (seriously) and I love following him on Twitter. Here is a great story on the nonsense he had to endure at the hands of Donald the bully and putz.
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