goldenhinde

Is This Financial Armageddon or the Greatest Buying Opportunity Since 2002?

I appreciate the easy language of your article and like your writing style. That said, I would offer two things to note. First, diversification is the last thing you want to do in this market. It guarantees that you will lose. You want to make concentrated bets only on those names or sectors which see action and you want to monitor your moves carefully. If you don't have time to monitor the activity of the bets you make - stay in cash.

If the bears are right - you won't regret cash. If the bulls are right and you are paying attention AT ALL, you will see the recovery happen and can join the party.

If you stay diversified you will lose in both directions.

There are some themes that will go on - no matter what happens to the flows of the capital markets. Alternatives to oil will, as an investment theme, not go away for a generation. Food and all the resources that go into its production will not diminsh in stature whether the bears or bulls win. People have to eat and the more people you have and the more inflation rages - the more important food becomes. Its importance relative to discretionary income will only increase. That is what happens in tough times. Lastly but not least WATER. Clean water is only available to 1/3 of the people on this planet and the statistics are getting worse. If you have all the oil you want (we don't) and all the food you want (we don't) but you don't have clean water - you have nothing.

Markets will be strong or weak en masse - but there are ALWAYS themes within markets that exhibit strength or weakness.

I am lucky so far this year being up about 38%. I am neither a rocket scientist nor someone who sits in front of screens all day. Just someone paying more attention than I used to pay.