April 04, 2006

Trends in place - let's review 10 for now.

1. Information is MONEY - the internet is just starting to exploit this to the power of a bajillion - Read " A Zebra in Lion Country" by Ralph Wanger

2. Commodities and inflation

3. Oprah - for my wife.

4. Internet Communities and blogging - -The Washington Post is getting on board-

5. Porn - probably the safest trend, but could not make that number one. Just trying to sneak it in. iPod and porn is the trend jihad!

6. Shipping and logistics - oil at $70 and the Dow Transports are at a new high. A classic case in which thinking cost you money. My biggest problem in the markets.

7. GPS - "Dude, where's my Blackberry!"

8. Internet software yield management solutions - shameless plug for GolfNow.com as usual

9. ETF's

10. Lifestyle themes - eg. Arizona

Most of these trends will end, except PORN and Oprah. New ones will evolve. I hope we can catch some together.

Obviously there are many more trends in place in much more specific categories, but many - like those in biotech and alternative energy - are just too hard for me to understand and therefore, I pass on pretty much everything. With the explosion of listed stock ETF's, this will change as diversification allows more comfort in speculation.

Trends also are relative to your timeframe. That is the most subjective. If you look at the Nikkei or Nasdaq in 100 year increments, even the 80 percent plus declines may prove to be a blip. I guess that is something that will further evolve but I will likely focus on the much bigger picture.

I think the key is to find trends that are in place, get into the trend, mingle, hang, make some money, let the trend play out and than protect some profits with good money management.

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