Stupid Fear

There is a lot of fear out there that seems absolutely ridiculous to me:

  • Henry Blodgett said that Bank of America might need $200 billion of capital. Last I checked he was an internet analyst and not a good one at that. While I recognize that I am not a banking analyst either, this eerily reminds me of the $1,000 price targets that made him so famous. And lost everybody who listened to him money. I can't wait for the $1 trillion loss estimate from the analyst that wants to top him.

  • People are freaking out that Lloyd Blankfein hired a lawyer. What would you do if you were being investigated by Congress. I would hire two.

  • An analyst at Barclays put out a note saying Walgreens will commit suicide by losing both its Medco and Express Scripts business. Yet, I'm certain they will sell down CVS as well because nobody will gain that business. I am long both CVS and Walgreens.

  • I have heard price targets of down 10% by Friday numerous times.

1 comment:

Onlooker from Troy said...

Business Insider is a tabloid.  Period.  Doesn't mean they don't ever get a story right.  Even the National Enquirer breaks a real story once in a while.  If you can sort through all the other sensationalist crap.

I was wondering what was ailing WAG this morning.