Trouble Ahead

We have been quite surprised by the recent bear rally.
Quite surprised, we shall admit.
Timing this thing is hard.

But the trouble is still ahead of us.
The bear will roar back with a vengeance, soon enough.

Anyone who thinks Bear Stearns was the only one to go belly up in this round is mistaken.

More losses are on the way, massive more losses.
The FED will run out of good debt to swap for bad debt.
The FED has bought time at tremendous cost, bailing out Wall Street on the backs of our children.
Reality will catch up.

On the day the next bank goes under there will be panic.
Investors will ask, “Who’s next?”.
When profits starts sliding, people will ask “how far can it fall?”.
When the commodity bubble pops, it will bring down the towers.
Just you wait and see.

– Short the market on bull days, we are heading lower, much lower.
– Corporate profits will take a hit soon enough, sell.
– Stay in long put positions.
– Gold is to expensive at USD 920, it is a bubble.
– Oil is in a bubble, unless there is a war with Iran.
– Commodities are in a massive bubble, it will come down.
– Stay in cash, the fire sale has not yet begun.

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