Monday, May 12, 2008

Market and Money

The market seems to be schizophrenic right now. Any ideas about the direction it's headed? I've heard both bearish and bullish arguments. Most of the bearish ones make sense to me, but I also have heard that a lot of those reasons have already been factored into today's prices and that there are some real 'buy' opportunities. I recently bought a couple of shares of Borders (BGP) for a couple of reasons, the biggest of which are that it has come way down in price to where--assuming they don't cut the dividend--it yields over 7%. And, I read an article about if it were bought by a competitor (namely Barnes and Noble) it's way undervalued. And, they're sitting on so much real estate and inventory that it seems like there's no way it will go much under the $6 it's currently trading at. Another reason is that if we are truly entering a recession, I think people will travel less and spend more time at home reading.

Please comment. Also, I finished my course-work now and am focussed almost exclusively on Cormac McCarthy. I'm nearly half-way through The Crossing. It's good.