MNSL

Are Equities Still a Better Investment than Housing?

I think so. I do not think that anybody can sell houses easily now.

We are still in the first stage of housing market downturn. Many houses are in negative equity. With falling employment, recession. Slower world growth, banking crisis and newly emerged credit mess will make housing market more and more vulnerable.

Stocks easily can sell even for loss now but not housing. As a result of this prices will drag down further. I do not think any recovery in the housing market for the next 10 years. By the end of next 10 years investment in equity will be better than invest in housing. We can just compare this at the end of next 10 years.

This Is Only the First Round of Selling

I think we should no rely on these giants now.

Can we believe their forecasts?

They said oil will go to $200 a barrel during this period. Now oil is trading around $60 a barrel

We should be very careful in selecting fund mangers, insurance companies, banks in the future.

They have overleveraged in almost all the areas:

Such as property
Commodity
Currency

In addition dealing in some of the highly risk instruments can bring down entire financial systems.

Time to Short Both Long-Term Bonds and Crude

I think we should sell oil stocks and other commodity related stocks now. This is the greatest period to make profit by unloading your existing investment in commodities. We had more than 7 years of bull market for commodity. We are in the final stage of current commodity bull market.

All hot commodity indexes including oil index will come down soon.

Very soon we will see collapse in the commodity market similar to property market. We are in the bubble stage now.

Oil prices will come down sooner than later.

This is the time to short all hot sectors such as oil and other hot commodities.

U.S. Market Setting Up for a 2nd Half Rally

I agree with above article.

Definitely we will see turn around in the US stock market in the 2nd half. US dollar will appreciate surprise to many while tumbling commodity prices. Inflation will come down from present level.

Now time to leave commodity oriented countries and put money in the USA and other promising stock markets worldwide to get above average returns from 2nd half rally.

Conditions Of New Bull Market: 20% Or More Drop

I think current volatility will prevail in the market until it find direction.