I have been back looking at my dismal portfolio performance trying to figure out what went wrong.  I observed long-term value and short-term gains do not go hand in hand.  In order to get short-term gains you generally need to short term price momentum and good earnings in the most recent quarter or year.  Dividends act as a cushion to great falls.  However, if the stock pays no dividends there is no telling to how low a stock can go.  If the earnings are negative some of these stocks can get into the 1s or 2s.  Recently I have been buying relatively low amounts in some of these stocks in hopes maybe 1 in 3 will turn it around, some tickers SCSS, JRN, CC, BGP, DTG.

I really like the idea of activist Fund managers and hedge funds.  Eddie Lampert seemed to start the fad.  I found this hedge fund Steel Partners.  Seems they go around buying stock then insist they get board members or that the stock does buybacks.  Funds like these do to save the stock market.  Some suggestions 1) limit CEO pay to 5X the minimum wage, 2) increase buybacks, 3) increase dividends, 4) Eliminate all stock option incentive plans, and 5) require any employee that wants a promotion to buy 1000 shares of stock with their own money before consideration.

The reason for this recession is not the war.  The reason is the drop in the overpriced housing market.  Housing workers that get laid off stop buying things and it ripples down the economy.  The cure is either to create new jobs or shorten the work week.  However, this housing recession should be shorter than the 1990s because in the 1990s Clinton attempted to balance the budget and we were moving towards that.   Today, inflation has no end in sight especially with all the wars and bailouts going on while they cut taxes.  Thus, the value of homes will rise with the inflation. Goodbye for now and buy an electric car.