Saturday, September 19, 2009

Sea Change

Cash is Trash.

If you missed the recent rally, you gotta forgive yourself and move on.  Most missed the rally, considering the volume of stocks trading hands outside of the flash traders.

In the short term ANYTHING can happen, but I am looking to buy, ON ANY WEAKNESS, energy equities.  This is a big change for me.  I even put a little of Big Oil in my portfolio friday (they have not rallied with the rest of the market).  I have no interest in U.S. banks, retail, transportation, etc... they are too rich for my blood.  But I AM interested in international commodity players (non-US companies), energy (not Nat Gas).  

Gold and Silver (and Platinum) have been my biggest personal holdings, and I will AD to these on any weakness.  Yes, the US$ could rally at anytime given the recent sell off... but the US$ is f*&^king doomed, and I don't want to be near it when the proverbial bad guys come and rub the US$ out in Mob Hit style.  

Deflation came and went.  It could come again, but I don't think for several years - not until the real blow up that comes when the U.S. recognizes all of its Social Security and Medicare liabilities.

The 800 pound gorilla in the room is OIL.  



Anonymous said...

And I thought you were in a good mood judging from the last post.


Dan said...

I have been in the hyperinflation camp since before it was popular and I still thing that is the long term future; however I am not sure deflation is over.

Methinks a lot of people will get overeager and be punished for it.


Dan said...

Doh! That should be think, and definitely at the link.

bureaucrat said...

Mike Whitney ( has posted several mainstream articles that suggest the entire "sucker's rally" we are experiencing now is driven by one thing: Bernanke. He IS the stock market, providing the funds for the banks to buy financial shares (which have been bought enormously this summer, running up the Dow & S&P). If that is the case, this rally will be over soon, and it likely will be revealed to be backed by a Fed Chairman's printing press and his willing banks who have nowhere else to put the money he is providing. There is no one worthy to lend the money to. And oil will never surge in price again as when it does, it shuts down the economy, so that oil demand falls and prices then drop. The solution to high prices is indeed high prices.