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For the Love of Money Is the Root of All Evil
Before this natural Jubilee Generation Winter Decades correction runs its course, we think we may see the Federal Reserve and US Treasury finally admitting bankruptcy, while publicly blaming the International Monetary Fund, World Bank and surplus nations for onerous additional austere bailouts and taxes with property foreclosure repossessions as they have done with third world debtor nations.
Other than saving face, most bankers don’t seem to care.
Being a banana republic does not guarantee hyperinflation if we default in the world’s largest credit derivative markets.
Defaults are deflationary. Expecting inflation to bail US out puts too much faith in broken government promises to save the economy. Saving cash works better than blind hope, borrowing and spending what we do not have.
We think the next round of higher interest rates and bank credit and mortgage defaults may make this quite clear.
We do not have a Crystal or Magic 8 ball.
If we did, it would likely be broken and shattered after being tossed against the floor and wall when it failed.
Most of our profits do not come from prophecy, but from buying assets and income low and riding long primary trends spelled out by Big4. We combine this old-fashioned value approach with disciplined money management, using trailing Buy and Sell Stops to enter and exit long-term TopTen Seasonal and other Big4 Weekly Asset Allocation portfolio positions.
Having admitted we cannot predict tomorrow, based on longer Big4 long and short extremes and shorter ISEE Sentiment indicators, we think we could see one last-gasp crazy all-in rally giving us a last chance to get liquid before the grand denouement. We will let our Trailing Stop Losses do their work in all but illiquid markets.
We pray people may take the opportunity to raise the cash the expert shills decry in favor of plunging into greater risk assets.
Our whole raison de’tre is to reduce risk, not increase it.
