The other day, someone asked about shorting DR Horton. This is what Bill Fleckenstein said, and my question:
What do you think about shorting homebuilders, like DR Horton?
• It’s a bit late… there are better targets.
Bill is short TXN, but didn’t say when he shorted it.
About foreign currencies:
Hey Bill,
Are you using the recent volitilty in FX [foreign currency] to add to your positions??
Are you still mainly focused on yen??
thanks!!
• I have CDN$, EUR, and YEN but haven’t added much YET… I plan to though.
My brother, who is brilliant, told me to diversify. Since we don’t know which sector will do well… Buy some foreign currency, precious metals, etc. That’s what I will do, but I will keep my majority in cash. I could be all wrong. Some things are easy to see, like the housing bubble that is before us, but the future I cannot see.
The book I am reading on $200 oil suggest loading up on gold and oil stocks and alternative energy companies. I bought some shares of Conoco Phillips last month. I believe oil will keep going higher, and oil seems more necessary than gold, so I should increase my oil position.
I am really clueless where to make money, but I believe that the general stock market is going down, so I got rid of my index funds and stocks. I kept Berkshire Hathaway and bought Conoco Phillips. So I put 95% of my money in cash, in a CD, while I figure this out. Now I am almost paralyzed, because I keep reading about what to do, and am doing nothing, because no clear strategy emerges. I am scared to short stocks.
I subscribe to the Yamamoto Forecast, and he tells his subscribers to be 100% cash, 0% bonds, 0% gold. Zeal Intelligence is waiting for a gold pullback. I am paying for their advice, and am heeding it.
