Big K

Equities Are Likely Heading Lower: Resist the Temptation to Short Them

Stop living in the past, this is not 1929. There is much more wealth in the world today. The flames of the coming inflation will shrink the massive debts allowing people and the government to keep borrowing. The way to keep up with inflation is to buy equities such as KO and JNJ. Despite the author's suggestions that companies will slash their dividends, these two companies and many others have actually raised theirs. The ones slashing their dividends are those who criminally gambled their shareholders money on games called CDS or CDO, or securitized junk mortgages marked with a AAA rating.

The author is also clueless about Pfizer (PFE). The reason they cut their dividend was to stockpile cash for the Wyeth buyout. Had nothing to do with the economy or going back in time to 1929. Bears romanticize about 1929 in this forum and wax fawningly over their overly pessimistic leaders. In this case, comparing the PFE dividend with the depression of the 1930s is not only inappropriate, but dead wrong.