I prefer to buy American.
Posted on 10/17/2005 7:59:53 AM PDT by Travis McGee
The October Newsletter The Leaves Won't Be The Only Thing To Fall! Enrico Orlandini Lasco Report 17 Oct, 2005
We're heading into that time of year where the word "crash" tends to command a bit more respect among market specialists, i.e., the months of October and/or November. Maybe it's just a coincidence, but I see an ominous cloud on the horizon. Actually, I see a large mass of clouds and they're as black as night. Anyone who's invested in the stock market over the last three or four years has little or nothing to show for it and, if you're still invested, you can't be feeling too comfortable right now. In short, a simple saving account would have been a better investment. Then again, when you buy into a market that's selling at 20 times earnings and paying a miniscule 1.75% dividend, what can you expect? Two weeks ago I warned my clients about the "probability", not the possibility, of a crash. What did I see that made me so worried that I would crawl out on a limb all by myself? Frankly, there were and still are any number of warning signals, and I would like to delve into some of them in the space provided below.
The first such warning sign comes from the market itself. Focus your attention on the following daily chart of the cash DJIA and follow along:
Lots of charts and analysis follows, HERE
Debt can also be repaid from assets. If debt goes up by $10 trillion and assets remain the same, that's bad. If debt goes up by $10 trillion and assets rise by $20 trillion, I think we're in good shape.
If you look at page 110, you'll see that since 2000, household debt rose by $3.745 trillion. Disaster!!! Except that assets rose by $11.89 trillion, to the highest they've ever been. Like I said, debts without assets is kinda useless.
I prefer to buy American.
Gold is gold. Who strikes the coin doesn't matter to me. But she is prettier than Botha.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.