Expect a Stock Market Rally Next Week

I'd put my money on this. In fact, I did just that, buying heavily yesterday and then adding more today. For the first time in many moons, I'm fully invested. But don't think this is a long term investment strategy (unless your view of the long term is that of a four year old). It most certainly is not.

Gates Taking My Advice?

During the Mexican peso crisis (so-called) I wrote to Bill Gates and suggested that he consider taking a stake in Grupo Televisa (TV), the Mexican media conglomerate. I pointed out that Televisa was cheap at around $12 a share and had a gem in its U.S. asset, Univision. Televisa subsequently spun off Univision to raise dollars. I noticed today that Gates personal investment firm, Cascade Investments, has joined Televisa in trying to retake control over Univision. I wonder if I should ask for a consulting fee?

If Gates is taking my advice, then I have some very good ideas for a reorganization of Microsoft, but I'll save that for my book on outsourcing/offshoring that I'm currently working on.

MICROSOFT IS A BUY AT THESE LEVELS

I anticipate some serious bloodletting in the fall (or even in late August), but suspect there will be another wave of optimism in the early summer and Microsoft is moving into undervalued territory at present levels (around $22.55). (And, if one wants to make money in this market, it is strongly recommended to stick with the cash flow giants, like Microsoft and big pharma (Pfizer), where the potential for disaster is less, even if Ballmer seems a bit on the wiggy side.) Use limit orders and low ball it (if your due diligence tells you that buying is a correct, short-term, strategy then figure out a low price to enter or accumulate and be patient). NB: In this market, consider every buy a short term trade.

Forbes in Shame

The recent false report by Forbes that Cuban President Fidel Castro has 900 million dollars is a shocking low point for that publication. Obviously the editors at Forbes believed they could publish this lie without any repercussions. Perhaps they did not think the Cuban President would care. However, the Cuban leader was outraged and challenged Forbes to produce evidence, stating quite unequivocally that he would resign if such evidence was forthcoming. Forbes response to this was to say that their report was "more art than science." In other words, we just made it up. Someone should be fired.