It's been one of the strangest weeks I can remember on the stock market, and the 10% Promise team has been working overtime to keep up with all of the wild stock swings. The market is blown off the debt ceiling debate (for now), so earnings dominated our moves this week.
Oh, how the mighty have fallen
For years, Netflix
I thought it was time to unplug Netflix a couple of weeks ago after the company increased prices, and investors are starting to agree. One quarterly report doesn't change everything about Netflix, but the company's 75 P/E ratio looks a lot less attractive if customers are starting to question its value proposition. I learned that a good thing doesn't last forever, and eventually, valuations catch up to you. This was the week they caught up to Netflix.
China is fun ... from a distance
Watching Harbin Electric
I've talked about the risks in China before, but Harbin highlights everything we can't trust about China. Investors really have no clue what is going on, and a bet in one direction or the other is no safer than betting on black at the roulette wheel.
Do-it-yourself drinks rule the week
Lofty P/E ratios have me nervous, but growth is off the charts for both companies, and I love a product that screams "made for lazy people." I mean, who wants to go to the effort of brewing a pot of coffee or carrying cans home when a single-serving drink is only a button away?
Foolish side note of the week
Coming into the week, I fully expected we would be reporting on stocks plunging over concerns about the debt debate in Washington. Although the market has been down, it certainly isn't down as much as I would have expected. To me, it seems like the market "knows" that everyone in Washington is bluffing and that a deal is going to be done in time. If not, Mr. Market may have a big surprise waiting for investors early next week. That's my big lesson for the week.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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