The S&P is Making Angel Investing Look Safe

Other than war, I thought I had seen it all.

Nope.

Today we have Jesus and Bernie Madoff tweeting. Of course you will tell me Jesus has been dead for like a bazillion years so how can he be tweeting. I say, pretty good argument but than how come it’s a verified account?

But…I digress.

Over the last week, the S&P 500 (not the S&P 5) has moved TWENTY percent. It has done so only to end up in the same place.

WTF?

It’s simple…none of us know what the hell we are doing and/or the markets are broken.

Today we have SAP buying Sybase ($SY) for $65/share. SAP has no idea what they are doing. If they did, they would have bought Sybase for less than half that price in 2008.

People call trend investing lunacy when that’s how 99 percent of the capital market operates.

I trend invest in the stock market because everyone else does it. It’s also very liquid. I pay higher prices because price rarely lies in the public markets. WHEN it lies, few have the courage (including me) or the deep pockets to truly profit. Those that do, deserve the profits. They take more risk than me.

The markets of the last week make a trend investor dizzy because prices just break.

The last week was an outlier event that prove no strategy works all the time and investing is hard.

It also reminds me why I angel invest…it’s safer :)