enviro111

Do Not Trust This Market

I do not trust this market either and I'm resisting the urge to jump back into it after mostly getting out back in October. It appears that the Dow could crater to 5000 or less, and gold could rise to $5,000 or more. When this happens is anyone's guess. It took FOUR years for the market of 1929 to reach its bottom - about 90% lower!!! There were suckers during every rally that trusted the market. Those who thought this was just another recession, those who believed their own BS about a new era, those who just needed a little action ...

Remember the old line - Bull markets climb a Wall of Worry and Bear markets fall on a Slope of Hope.

If hope is the only reason for buying now, then forget it. By the time this bear market is over the Dow of 2012 - 2013 might have the purchasing power of the DOW(2009) at 1000!!!!

It appears with the BO administration that government is just as incompetent as it was during the 1929 - 1934 period. Forget Roosevelt, Hoover was the real villan who launched "The New Deal". He just didn't market it as such and make it huge. Don't worry. This time BO will not make the mistake of modesty.

With the government throwing caution to the wind, you might not really see Dow 1000, but through miracle of inflation it might feel like Dow 500.

For those who read it BS and care, here is my suggested portfolio

1. 30% gold and silver - take possession
2. 20% cash - spread it out among many currencies and take possession of some of it.
3. 30% fully paid for real estate
4. 20% speculative

if your resources are limited make the speculative part cash or gold.

avoid BONDS!
avoid Stocks for now