History (by way of the markets) has responded by doing exactly the OPPOSITE of what he predicted. And that’s no surprise.
He recommended to BUY stocks, but stocks promptly fell (S&P500) by 10%
He recommended to NOT buy gold and gold miners. Gold responded by climbing from $900 to $980 per ounce.
He recommended to BUY the commodity miners that mine the bulk (not precious) materials. Those stocks have tanked.
He thought European stocks were better to buy. Wrong again.
He thought Asian stocks were a smart buy. So far he’s been right on that. (Even a broken clock tells time correctly at two moments each day.)
This is my post for this month. See you next month. I hope you are all short this stock market. If any of you are STILL stupid enough to long stocks in this market, I recommend you simply put your money in your kitchen oven and turn the dial to BROIL. Same effect on your money, but faster.
Here is esmiths’ post (01/30/2009) if you want to have a few laughs:
Wow, some really bad advice in this thread.
We’re 16 months into the recession and 15 months into the bear market. 3.8% annualized GDP decline on front pages of newspapers. Expectations of the worst recession since WW2 fully priced in to the stock market. Unimaginable P/E’s on every corner. Government fully committed to print as much money as necessary to turn things around (spending bills passing even despite every single republican voting against).
If you sell today, a year or two from now you’ll regret it. If you’re all-cash and you don’t go in today at least partially, you’ll regret it too. Buy miners (but not gold!), buy exporters, buy NASDAQ index funds.
Stay away from gold and gold miners. Anything is better than gold: forex, asian stocks, european stocks, even U.S. stocks. Remember about the ticking time bomb which is the 700 metric tons of gold in vaults of GLD, ready to rush into the market when the recession is officially over.
