Tuesday, September 25, 2007

Adios Dollar

Well it was a 50 cut after all. Quel surprise!

And what do you know? The dollar is tanking, gold went crazy,oil is over $80 and the Dow is almost at 14K. However before you get too giddy, just remember that 14K is less than 10K in 2000 dollars. Inflation has eaten away any gains you've made.

I sold out of everything the day after the cut. Took the Ben B rally money and ran. I was tempted to buy some GLD but I'm still of the mindset gold is in its own bubble, inflation and all.

So instead I bought some SLV instead. Silver is used commercially more and is not a pure speculative move. It too has gone up a lot, but more justifiably so than GLD.

So right now I am 70% cash, 10% bonds, 10% stocks and 10% SLV.

I am still very bearish on stocks for October and November. Yesterday was a sneak preview of what'scoming with a 0.5% loss in the s&p500.

It still boggles my mind how so many so called experts are bullish. These are the same so-called experts who said housing would be "contained". The same baffoons who said subprime was no biggie. The same tools who were shocked - shocked I tell you - that the MBS and CDO markets were trashed. Who woulda thunk it?

No comments: