Investing For Growth
Investing For Growth
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FOOL GLOBAL WIRE LEXINGTON, KY. (November 15): If one had to describe today's market session in Shakespearean terms (and the only reason I can think of where one would have to do such a thing is in the class of a sadistic literature teacher with a technology-laden stock portfolio), perhaps the most appropriate reference would be that oft-quoted passage from Act V, Scene v of Macbeth: "it is a tale told by an idiot, full of sound and fury, signifying nothing."
In other words, today was options expiration day and the action, while ultimately not very significant, was wild at times. The Dow posted its tenth consecutive gain and eighth consecutive record. And while the Dow was up as high as 60 points at times, the technology-heavy Nasdaq got drilled. By the market close, the Dow held on to a 35-point gain, but the Nasdaq lost more than 8. If you convert the Nasdaq loss into Dow-equivalent points (a five-to-one ratio), that's more than a 40-point loss. So we saw a divergence of nearly 80 Dow points between the Blue Chips and the Nasdaq. That's what lots of volume and heavy options activity can do to the market.
Does it mean anything? Not really. These short-term blips up and down work themselves out within a couple of days, so it's always a good idea if you tend to be an emotional investor (like I am) to ignore the markets on days like today. Unless you're looking for a cheap way to get your heart pounding, watching the ticker tape on options-expiration days isn't particularly good for your mental health.
The only company news for our Investing for Growth stocks today was the announcement from Australia-based Coca-Cola Amatil Ltd. that it has significantly revised its profit outlook for 1996. Originally expecting earnings growth in the "midteens," the company now expects earnings to be flat compared to last year's levels.
The company blames the drop-off on its "aggressive investment program and accelerated growth strategy" is developing countries and in Europe. Coca-Cola Amatil is 40% owned by Coca-Cola.
One final note: Fool HQ asked me to prepare you for some cosmetic changes in this area. If you tune in one evening and the IFG area is gone, don't revolt, don't run to the Wise. We're just moving some areas into new homes to make navigation easier. You'll be able to get to IFG in the Hall of Portfolios area. (It's already there now as well, in case you want to rearrange your daily stroll through the Fool.)
That's all from Bluegrass country. Have a Foolish weekend |
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