jstratt

Private Equity Releverages with a Vengeance

Outrageous again!

PIMCO (Economic Pessimist) vs. Barclays (Economic Optimist)

Great Article!

Some thoughts

Bill Gross is talking his book.

One of the best things was for me to be in school and studying the markets in 1976-80. I saw first hand how high unemployment and high inflation had citizens believing that the US was in a long term downhill spiral. In fact no other conclusion was even thinkable.

I dont know whether the market will go up or down. I do know that I will continue to find a way to profit as I have over the past 2 years.

Ask yourself what you will do if the market drops. I saw many friends sell near the bottom and keep their money on the sidelines until this day.Crazy thing though, they werent scared at Dow 14000 and they werent greedy at Dow 7000.
They took their long term funds and turned them into cash at a low valuation.

It is fashionable to talk about the need to trade for profits. If you are an average person however Goldman Sachs will just see your trades and beat you to the best price.

So hold tight and when things drop sufficiently and make your buys.

Bank and Broker Default Risk

Thank you Bespoke!

Today became the day I reentered the financial sector buying stocks of JPM, USB and BK all of which are on the world top 50 strongest bank list.

I held off on WFC even though they were the highest rated if I remember correctly. The reason I held off is that Bespoke and other financial data seems to question WFCs strength.

In fall 2007 I concluded we were entering a financial crisis and liquidated all financial holdings such as C, AIG, CFC and BAC. It may not be the bottom but it does seem like it is an attractive time for the strong to seperate from the weak financial players.