The Last Can Standing

“Be greedy when people are fearful, and fearful when people are greedy.”

- Warren Buffet

The Dow continues to bleed as the State apparatchik and its lapdog media finally admits to what has been obvious to plain thinking people since 2007, and to commercial investors since 2006. In response the Dumb Money did what Dumb Money continues and will always do: Sell low in a panic after buying high.

Soon the commercial investment firms, many of them flush with YOUR tax dollars, will be buying this dumped stocks at fire sale prices, but only from certain companies:  The Winners have already been hand picked by the State. What a crappy game this is, trying to invest in a jacked-up and rigged economy. There IS a Doctor in the House; unfortunately nobody listens to him.

Don’t Just Do Something, STAND THERE

I bailed out of domestic stocks in 2006 and international stocks in 2007.  Corporate bonds, while safe during a recession, are a ticket to Hobo Land during a severe depression so forget it. My 401K severely limits my movements and short term Treasury Bonds are the only safe haven available to me. Consequently my account is parked, slowly bleeding to death from the difference between the 3% interest rate and the real cost of inflation.

This cannot continue.  However, the time to buy stocks is when, according to a famous Rothschild, “Blood is running in the streets.”  Granted the man profited from war, but that’s the subject of another post (stay tuned). Hopefully I’ll still have a job when it happens.  Once the market drops below 500 and everyone who is not a hobo is in Treasury Bonds I’ll be fixing to bail into the depressed-and-indexed international stock fund.

Burning Down the House

Is the fire sale about to begin?  Meh. You ain’t seen nothing yet. Consider a little triage:  Your stock investments, “if you must,” should be recession proof:   ENERGY, BEER, CANNED GOODS, AND GUNS.   This is not a “recession.” This is a DEPRESSION, so stay realistic. Stocks might lose some value in the short deflationary period but they’re less likely to go out of business, and that’s what matters in this economy: Staying in business over the long haul, selling valuable things that people actually NEED.

Too poor to invest?  Listen: Grocery shopping IS an investment!  If you can’t afford to buy stocks just buy solid products, from solid American companies if possible, that will get you through a DEPRESSION. That’s right, you buy ENERGY to help you survive the Apocalypse:  Solar power, beer, rice, canned goods, guns, and hobo gear if there is ANY chance WHATSOEVER that you might up living “on the road” after losing your job to this shitty economy.

The Short and Short of It

Shorting stocks is something I’ve not yet learned how to do.  That will take some reading and some “play money” I don’t quite have yet. Let me stuff my mattress with bullion first, donate a few Benjamins to the local food banks and finish my latest, The Complete Idiot’s Guide to Options and Futures.

I see COMEX, the futures market at the New York Stock Exchange, has been dubbed “CRIMEX” by the gold bugs. Frankly, in such a rigged market reading about commodity futures sounds like a safe investment!  By summertime I suspect that all hell will have broken lose and “natural” market forces will reign, and presuming I’m not a hobo I’ll be able to start playing the game.

I’m reading a market bottom in the 4000-? range, but hey that’s just me. REAL doomsayers are flinging around 2000-3000, but I think such a dip would be matched by such a frenzy of institutional buying that if it happens it’ll only last a day or two.  Most normal people will be so preoccupied with subsistence issues by then that they won’t even be watching the Dow: They will be too busy readjusting their American Dreams.