Okay, the burden of responsibility is now on the shoulders of men wearing fancy pants. The ECB is not the Fed. In my estimation, they are too fractured to come up with a cohesive plan over the weekend. This whole little crisis is likely to snowball out of control, turning it into a giant snow man, armed with rocket launchers and shit. I underestimate the Europeans, based upon history. However, there is an outside chance they will concoct some sort of scheme to placate markets— leading to a Monday melt up.
As a result of this sovereign debt crisis, the credit markets are tightening, ipo markets have seized and sentiment has turned decidedly negative. You need to understand these things and throw away your investment thesis of two weeks ago. Things change and so should you.
Here is my game plan:
Because of my large [[VXX]] position (28% of assets), I am up another 2% for the day, bringing my year to date gains up to 17%. With my cash reserves (38%), as discussed in earlier posts, I intend to buy your margin liquidations, with great vigor. Thanks in advance for that.
I am circling the wagons around three names (that’s right, just three):
POSCO (ADR) [[PKX]]
Goldman Sachs Group, Inc. [[GS]]
Eastman Chemical Company [[EMN]]
All three are market leaders and represent good value, based upon current estimates. Furthermore, should the market get flogged some more, they will not receive homo-hammers to the scrotum, just small meat tenderizers to the face.
In short, “The Fly” wins again, much to your chagrin.
In other news, my friend, equity partner, and fellow blogger Chart Addict will no longer blog here at iBankCoin. He has moved over to Stocktwits aka The House of Lindzon. Knowing CA for more than a year and meeting him in person, I can say, without hesitation, he is a real pro and an honest/trustworthy person. Access John’s farewell here.
NOTE: Elections for the next tabbed blogger will commence Sunday night. Mr. Caine Thaler versus ChessnWine. Be there! Oh, one last thing: because of the elections, The Fly’s weekly cartoon will air tomorrow.
[youtube:http://www.youtube.com/watch?v=etl9kkIGaHo 616 500] Comments »