Tuesday, October 28, 2014

Union Pacific and how every hedge fund is run by morons

A recap.

Back in mid-October, Union Pacific was a piece of garbage stock that needed to be sold because:

1. deflation
2. collapse in world trade
3. Ebola
4. poor future for shale oil because oil prices went down
5. wharrgarbl.

All perfectly intelligible reasons to puke UNP, right?

So splain this to me:

That's not just a recovery, but an accelerating upward breakout.

So here's an interesting idea for all of those financial professionals reading my blog:

If you were to track down every person in your office who was in favour of dumping UNP at $100, and then you beat each of them to death with a hammer, it would be illegal. In some states, you might get the death sentence. No good and sane person would ever do such a thing.

And that is why your stupid firm will never outperform SPY. Give up.

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