IT’S A MAD, MAD, MAD WORLD
18th June 2008
The market continues to get pounded. There seems to be a new bomb everyday. A few days ago it was LEH. Today, MF and FITB dropped bombs. The CFC combo that was recommended last month should be bought in for a nice profit. The bond market is completely confused. One day they are pricing in rate rises, the next day they are taking them out. The truth is that the fiscal stimulus that consumers are getting right now is doing the trick. When this wears off, look out below! To top it all off, a respected analyst at RBS called for a major crash within the next 3 months. All of this is not conducive to putting more money to work. For the last 1000 points in the DOW, this site has been saying to stay defensive. So STAY DEFENSIVE!
BA