Dr. O

Monday's Closing Update

I believe at this point the equity/commodity and forex markets are completely controlled/manipulated.

I believe we are experiencing a pause in a depression-like world-wide downturn. I believe all asset classes will continue falling over the intermediate-term (months to years).

I believe one has to diversify across currencies and precious metals to preserve wealth. Forget about generating wealth for a while.

The only people making money are working at Goldman Sachs, and they earn money not by analysis or speculation: they trade off inside information and front run the big money they manage.

They don't throw darts at a board, they only bet on sure things. And one thing is for sure, this market is being propped up long enough for banks to issue secondaries and big money to unload merchandise. This market will crash again before its all said and done.

Where Have All the Buybacks Gone?

Interesting who is buying back: MSFT, XOM, PG, JNJ, and PEP, GIS, ORCL, PM. The first four are Dow components.

PEP beats KO in my mind due to the fantastic snack foods division. General Mills is the archetype recession stock, as is PM. ORCL, is, well, ORCL.

The dunce cap goes to Dow component AA, buying at 40 and selling at 5. Cyclical companies should plan for the lean times by provisioning cash better.