bearfund

7 Rules For Investing During the Fourth Quarter

There's only one real question anyone should be asking: where's the next bubble going to be? We don't have an economy any longer, we have a giant monetary oscillator with positive feedback. Every move up is bigger than the last; every move down is more terrifying - and met with ever larger monetary and fiscal "stimulus". This has no real effect on the downward leg (its fundamental underpinnings having been established firmly during the last up cycle) but serves as liquid oxygen feeding the fires as the downward leg ends.

The Fed and other powers that be are 90 degrees out of phase with the reality on the ground; the harder they try to be countercyclical, the more positive feedback they induce. The only question that matters is where their misplaced and mistimed flood of money will end up this time. All money is made by buying bubbles on the way up and shorting them as they burst. Investment is dead, its real returns dwarfed by the easy money to be had in speculation and the deep pockets of the manipulators. Don't be a schmuck, thinking that a "solid company" with "consistent earnings" or "a strong balance sheet" will deliver returns. It won't. Find the bubble. Get long. Then get longer. Then get very, very short. All money is made that way. If you want to make money, you have to play that game.