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Dow 10k: The Higher They Rise, The Harder They Fall

Very good article - it gets back to the decoupling argument of emerging markets - and you are right there is no evidence whatsever to support the inter markets pulling the US train at 25% of the world economy based on 70% consumerism. If you look at many stocks you will see little volume but a tickling of higher prices for many months. There is of course the buy and hold crowd still there and too big to admit mistakes invest crowd waiting for the eventual return they are not selling which allows this tickling of prices. But after a 40% rebound - well .

I was hoping you could be more aggressive in your positions - like selected stocks short if this is indeed a multitrillion dollar vapor bubble. Certainly you can find us something and yes timing is crucial but right now the majority of your cash and bond funds are losing 15-20% against other currencies.

Protecting Your Portfolio: A Look at Four Safe Haven Investments

Very nice article - it really questions the case why a country with a high savings rate and trade surplus and strengthening currency doesn't always net good results for it's citizens - japan. Yet we constantly hear that we need all three in the US.

But an investor needs to pick a strategy - is it deflationary or inflationary times? In deflationary times - why avoid the bonds? Look at corporate bond funds yielding 5-10% -if stocks are expected to deflate. Is the risk of default already priced in or not.