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08.14.11 My Negative-Views on the Stock Market

August 14th, 2011

Dear Reader,

I believe after the SP500 ramps up a bit, the next leg is down. This makes me bearish on the U.S. and global economies. I believe in the world of Joe Sixpack, we are in a depression. Depression doesn't sell to well in the mass media, but at least I can share my viewpoints versus a Goldman Abby Joesph Cohen' annual mantra. Her mantra never provides money makes ideas but she speaks well.

I believe gold, agency-mREITs, and select stocks will outperform the market. It is within those industries and specific-stock selections that I will focus my investing proceeds.

I am pruning my portfolio so it provides more reliable and quality dividends/distributions. I will aggressively hedge my positions.

The market fundamentals are ugly:

  • Home prices continue to decline.
  • Zero job growth exists.
  • We have deflationary pressures in place.
  • Ben has stated the Fed Funds rate will remain 0%. This is another bailout of the banking system. The banks will not loan to people who need the money.
  • 1/6 U.S. citizens are on food stamps.
I shall invest accordingly.

Best, Todd