The Stock Market Makes No Sense - 2009-01-07 02:01:30
I wonder if I can invest my IRA in casino chips???
Back in the mid-December I bought a bunch of oil related stocks/trusts. Since they were priced ridiculously low, as if the world would never use another barrel of oil ever again. The same thing applied to most commodity stocks. My view on that is that sure the US is toast but the rest of the world will recover just fine, and will use commodities in the future. The downside risk seems minimal to me, if the world never recovers and in fact oil and steel become historic artifacts than the money I saved by not buying such things will be worthless anyway - in the mad max style scenario that would result.
Today I looked and the days ticker for one was: XTXI $6.71 +2.18 (48.12%)
Which makes no sense at all, no news no nothing to be seen about and yet it jumps up 50%. Even stranger since I bought it it's up 190%. With no news that I can find about why the spike up. I'd sell it, except it's after hours and thinly traded and I bought it for the dividends (yes in an enterprise that lost money last report) anyway.
And before you think I'm just showing off here's the since I bought performance of my great choice in a commodities index: -44.26%.