As most of you saw today, employment numbers came like a shot to the nuts for wall street leaving equity ft.com/intl/cms/s/0/f976aa92-bbf0-11e0-a7c8-00144feabdc0.html#axzz1U6kjg94V">markets down , hurting, and probably not getting back up for awhile. The shot was spearheaded by energy stocks causing the DOW to drop some 500 points, the largest drop since the financial crisis. The S&P recorded a loss of nearly 5%, which was even more than the drop after the collaspe of Lehman Bros.
The US was not the only market that was in trouble though, as the ECB helped accelerate a market free fall when they announced that they would buy more distressed bonds to help the weaker countries under the EU. Japan also joined in on the fun as they tried to weaken the yen by announcing a quantitative easing program.
As it stands today, it looks like the proverbial shit has hit the fan in the markets. The question is, with all this bear shit flying around, where do you put your money? Lets hear it monkeys, or I'm going to start stuffing my mattress.
Buy stocks at limit and catch the momentum going up...cause it will eventually
Or go into foreign denominated currencies because the dollar is not worth your hair ( even if you are almost bold)
Timeshares
Long CHF vs Euro. Long Gold after the margin hikes hit. Buy CDS on England, Germany, France and Eastern Block countries (if you have the capital).
Long Sugar and Corn. Short Euro and when Italy goes the Euro will go.
Long Silver after margin hikes hit.
The only thing i've been sure of for the past week was a debt ceiling raise. Thus, I'm ~90% in treasuries and will be until next week at which point im going heavy stocks. It would be awesome if apple fell another 2-3%
Gold is due for a significant correction imo. Thoughts on this?
There are some ridiculous buys out there right now. HES at a 7 multiple? When bond yields are this low???? Where do I sign up? lol
All the integrateds are ridiculously cheap. Some of the service and E&P names are as well (not all).
Solar stocks are ridiculously, ridiculously cheap. LDK at a 2 PE, 1x QUARTERLY revenues??? Lol you have to outright think the numbers are a fraud to not be buying that hand over fist.
The economy is jack shit because energy prices are high, but they aren't coming back down because the fundamentals for energy have changed. Cheap energy is gone, never to be seen again. This will limit economic growth. Thus, energy will outperform all sectors for the coming decades. Short overvalued, overyhyped discretionary spending crap like NFLX, GMCR, LNKD, etc and buy quality energy companies at attractive valuations. Sure, there will be shit days like this when energy lags all sectors, but I guarantee you will knock it out of the park if you have discipline and a long holding period.
And it's not just energy. FCX at an 8 multiple? C'mon guys, all these idiots are running to treasuries. TREASURIES!!!!!! Lol, the US is bankrupt and deflation will never happen long-term because they will print money. Equities are much, much, much better risk/reward relative to bonds. Either bond yields have to go up, or equity multiples have to go up. Short bonds, long commodities-related equities. If you have a long time horizon, it's guaranteed money.
Btw, you can hedge your currency exposure as you see fit. You can be long these equities/commodities against the dollar, or a basket of currencies...
Agree with Alex. On the other hand, LNKD at 1400 multiple? Sign me up for some puts, boys and girls.
http://www.zerohedge.com/news/bank-america-perfectly-symmetric-888
Hmm I remember someone saying BAC is a goddamn steal right now lol
the funny thing is all those multiples and PE ratios etc are bullshit. Who cares whe the entire market is going down?
People need to realize the market is fueled by money printing and nothing else for the last 40 years. The debt keynesian end game is here.
In 2006 it took 6 dollars of new debt to create 1 dollar of GDP. Every dollar of new debt they create now has a marginal affect on GDP.
In other words they cant print and inflate asset bubbles anymore.
The Fed's ability to print and inflate asset prices is endless. The only issue is whether they choose to do it or not.
Alex we agree a lot on most investment and world life views but I will have to disagree with you here.
We have reached our debt saturation limit and the great keynesian experiment is about to end. They cannot inflate asset prices forever by printing money.
The question now is, what do we do now that the only policy tool the FED has doesnt work?
As Ron Paul said "he is surprised it lasted this long"
The FIRE economy is going down in flames.
I'd really like to see the ability to hide all posts from x users. Might be worth subscription money. Let's make a deal, Patrick.
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