The Motley Fool CAPS investing service is one of the newest additions to the investing community at Fool.com, and it's another great way for investors to work together to beat the market. One of CAPS' features allows users to set up a blog to talk about their picks, investing strategy, market view, or favorite baseball team (if they so desire).
I've scoured the CAPS blog universe to bring you a generous helping of the top blog posts of the past week.
That crazy Fool TMFHollywoodDan is back at it again on CAPS TV. This time he traveled to the home court of CAPS' top Fool, TMFEldrehad, to get his thoughts on CAPS, the market, and the Eldrehad investing style.
And while you're enjoying Dan's Foolish wit, why not also check out the video on his blog called The Duke of Wall Street and watch the saucy Duke read some CAPS stock pitches.
Too big to fail
The potential for the Fed to intercede (further) in an effort to steady the financial markets has caused lots of strife. One party thinks that the repercussions from further turmoil could end up hurting underlying economic growth. The group on the other side of the fence thinks that Wall Street tends to get bailed out too quickly when it takes on too much risk and would like to see it lie in the mess for a bit.
In his recent blog post, CAPS All-Star StockSpreadsheet argues that major investment banks such as Goldman Sachs (NYSE: GS ) and Bear Stearns (NYSE: BSC ) shouldn't be regarded as "too big to fail." He thinks an old-school approach that says "spare the rod, spoil the child" is the right way to go.
Time to short dry-bulk shippers?
Greek dry-bulk shipper DryShips (Nasdaq: DRYS ) has been a hot topic on CAPS for a while, largely because the stock has been so poorly regarded on CAPS while it has had an amazing run. Currently, the stock is up 350% over the last year, and the 13% gain it notched on Wednesday suggests that it may not be done yet.
CAPS player HellenicMaritime, who is bullish on a number of shipping names, suggests in a recent blog post that run-ups in stocks like DryShips are not flukes, and that the strength could continue.
A week ago, I wrote an article suggesting that there may be trouble ahead for the investment banks that comes on top of the front-page problems their hedge funds are having. Coming to a similar conclusion was one of CAPS' top players, JR10022. JR argues that though some of the larger, more diversified banks like Bank of America (NYSE: BAC ) will be able to weather the storm, some of the smaller banks like Goldman Sachs could be in for a bumpy ride.
My investing approach
Especially if you're new to investing, one of the best things you can do to get better is to find out what more experienced investors do and use that as a jumping-off point. In a recent blog post, JJMSpartan, an investor ranked in the top 10% of all CAPS members, shares his approach to investing in an effort to help newer investors.
Homebuilders? Yeah, that's right, it's been a while since you've thought about these guys since the hedge funds and banks have taken over the headlines. But the homebuilders are still out there limping along, trying to find a bottom in this housing market mess. In his post, floridabuilder shares his thoughts about what cash flow means to the major homebuilders. Though he thinks that KB Home (NYSE: KBH ) and NVR may be on solid footing, he thinks that some of the major homebuilders like Pulte Homes (NYSE: PHM ) and DR Horton (NYSE: DHI ) could end up looking at serious liquidity issues.
Being right versus being lucky
Though TMFKmoney is no longer the top Fool since being bumped out by TMFEldrehad, he's still right up there in the mix. However, he points out that his view from the top is that CAPS isn't all about being No. 1.
On that note, it's now your turn to get off the sidelines -- join CAPS, and start your own CAPS blog to share your knowledge and insights with the rest of the 60,000-strong CAPS universe.
More CAPS Foolishness:
- 5 All-Star Stocks on Fire
- Invest Like a Pro: Farallon Capital Management
- 7 Highly Rated Stocks on Sale
Fool contributor Matt Koppenheffer shares some thoughts of his own on his CAPS blog. He owns shares of Bank of America, but does not own shares of any of the other companies mentioned. The Fool's disclosure policy does not have its own CAPS blog, but if it did, it would blow your mind.