Tuesday, October 17, 2006

It’s Good to See Red

Inflation fears give investors an excuse to grab profits and send all the major indices down a shave. It’s about time! Once in a while the market needs to consolidate gains; a run-up with no brakes makes me nervous.

PG couldn’t have picked a better time than today to stop its bleeding. It’s been down in all sessions since Friday, October 6. However, it is the only folio stock that holds its ground today. It is helped by a little bit of “flight to quality”, which tends to happen when investors are rattled. It’s also helped by the fall in the price of crude, but I’m not betting on oil to keep falling. Colder weather is bound to put a floor under the price if not boost it.

EBAY reports tomorrow. Recently I dug into their 10-K to see what the future holds. It’s scary to read this document. It’s full of warnings about so many developments that could “harm our business”. Anyway I think PayPal is going to be very important to EBAY’s bottom line over the next few years. The jury is still out on the purchase of Skype, and many Skype users will probably jump ship once EBAY starts to charge for those free VOIP calls. What, did you think they were going to be free forever?!

BTW I love Yahoo! Finance's new interactive charting tool. Excellent tool!

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