nova

Time to Buy and Hold for Reflation: Four Promising Sectors

I was watching Bloomberg today. Two things struck my attentions:

1. Overall market was modestly up in a morning until Obama gave one of his endless array of conferences. Immediately following his speech, the market went negative.

Obama sounded as a professional demagogue similar to an old Soviet era communist party official with a lot of slogans without any substance.

He promised a lot in a future, he belittled everybody who did not agree with him, however, he did not offer any comprehensive analysis of the present crisis or any specific ways to address them.

2. The Senate appearance of the FED Chairman Ben Bernanke.

Ben tried to be very vague. Each time when he was asked a specific question, Ben was trying to demagog his way out. When it did not work, he claimed that there were no answers at this time since the present situation was too complexed and unpredictable.

Bernanke did not offer any insight into the FED actions capable of reversing the present financial crisis. He clearly indicated that he had no clue of what was going on. He sounded more and more like a casino loser hoping that his next roulette bet would bring a success. Nevertheless, he was depressed understanding the futility of the FED and the Treasury random bets.

The Bottom Line
Both our President and the FED chairman were clueless of what is going on and what to do. Both were trying to stick to the yesterday unrealistic script.