E Tuesday Talk: Of Rice And Rain

M.D.C. Holdings, Inc. (MDC) engages in homebuilding and financial service businesses...The Zacks Consensus Estimate for the company’s current-year earnings has been revised 15.6% upward over the past 90 days. M.D.C. Holdings carries a Zacks Rank #2."

Bera prefaces these stock picks with some solid reporting about the US housing market overall. Good reading. As always, caveat emptor.

While it is true that market indexes closed at record highs last week and the U.S. economy seems to be getting well back on its' feet with strong support from Biden's stimulus package and the anticipated infrastructure bill to come, not all pundits are convinced. Closing out this week's column are these remarks from contributor Jesse of Jesse's Cafe Americain. Writing in Stocks And Precious Metals Charts - Cryptic Valuations And The Bubble From Hell - At The Quiet Limit Of The World Jesse has this to say:

"We are back in a bubble that is strikingly similar in size and sentiment to the dot-com bubble at the turn of the century. This struck me very hard today while I was watching financial tv, and listened to a discussion of the cryptocurrency markets. Sometime in the next two years, and with a good probability of later this year, we are going to fall back down into the plunge pool of reality. The cynicism with which people approach most things now is almost incredible. I am now very alert and have structured my portfolio and my general life more defensively. I have taken the most profits. I employ no leverage. Am I being overcautious? Yes, I think I probably am. Especially compared to those who are chasing risks with abandon, and begging to get skinned."

Have a good week.

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William K. 1 month ago Member's comment

The very wise advice given to gamblers has been " Do not gamble more than you can afford to lose", and this rather obviously applies to stocks as well. And the other, equally as wise advice, ha been to not gamble with borrowed money. So in the stock markets they call it "leverage" so a to make it sound less dangerous.

The really interesting part of the whole thing is that some folks do quite well even as they go in the opposite direction, gambling far more than they can afford to lose, and doing it all with borrowed (leveraged) funds. That is a puzzle that I have no hint of solving. And a game that I have chosen to not play. I may occasionally wager, but I never ever gamble.

David Marshall 1 month ago Contributor's comment

A wise wager is better than a brash bet, though Yuval Taylor presented a contrarian analysis 🧐

Robert Capasso 1 month ago Member's comment

I thought Yuval Taylor made some excellent points.