PICTURE: US Dollar, War economy, Housing Bubble and Inflation.
continue to increase, “unless
is too weak
estate has peaked.
after the current
continue its secular decline unless things change.
financial costs and consequences of the Iraq War and the War
be realized: It
is like focusing on the more
dead and not
counting the well
15,000 seriously wounded. The future costs to the
administration, military equipment
and the higher
recruiting is NOT
properly factored in.
especially as financial engineering and other such profits
decline due to high interest rates.
to a declining
the after effects of a vastly increased
deficits and trade
deficits will continue at or near record
line: 2006 will show sluggish growth under 2%, no growth or perhaps
PSYCHOLOGY: THREE MARKET FAIRY TALES FEW STILL BELIEVE
- HIGH OIL PRICES DON’T MATTER.
- THERE IS LITTLE OR NO INFLATION.
- THE US ECONOMY IS
STRONG AND HEALTHY.
reasonable case can be made that the 2005 market
If so, it is only a question of what to sell and when (ideally into the
the 4 year presidential cycle, this is often a down year (witness 2002,
are four possible
potential crash dates,
be three Jupiter/Saturn
(which translates into a business cycle risk), beginning December 2005
and lasting until October 2006.
March 29, 2006,
there is a Total Solar Eclipse,
which increases the global terror risk in 2006.
Neptune in 2006, while Saturn opposes Neptune in
2006 and 2007. Both of these planetary pairings
translate into future
Oil and Inflation risks.
ahead, Distressed Investing
will replace M&A as the BIG money maker in 2006/2007. Watch for
or breaking their 52 week lows.
is more than a
currency, it is an INFLATION metal. Years ago, Weingarten
was a rare
more than an inflation metal, it is a currency.” Gold
has been above $400 for quite some
time. There is inflation,
fact that it is under-reported.
enter Scorpio in late 2005, which will
cosmically bestow favor on sectors
such as Health Science, Mining and
(spying) and Environment Control.
bankruptcy, which is a challenge for the financial sector.
following are a few
potential courses of action investors are advised to consider by this Summer:
securities account to 0.
selling what you
personally would not dream of buying at current pricing or placing a
to protect profits.
covered calls or buying some put protection or a Bear Fund makes sense
stocks in May/June.
Make a wish
list of what you
want to buy with the cash you have or
will raise. However, don’t
be in a rush to buy until there really are bargain basement price sales
as CASH WILL BE KING in 2006.
Take a vacation!