“The Fly” is quite pleased to see [[WM]], [[LEH]], [[WB]], [[WFC]], [[ABK]], [[COF]] and [[MBI]] shit the shower.
Last week, the dumbest possible money was piling into banks, as if those fuckers were going to new all-time highs. Cramer was exclaiming, going into recessions, the market goes up in a straight line, with hardly any pullbacks.
In short, my head was spinning, thinking, “how could everyone be so gay”?
None of the above is true. In the past, recessions riddle investors with “fuck you, you’re dead” losses. With regards to timing: typically, the market bottoms out after unemployment reaches 6%—providing the recession is mild.
With unemployment at 4.9% and the economy slowing, you have to be out of your fucking mind to “go long and strong” up at these levels.
Again, without a doubt, I feel the market will trade 10-15% lower in 2008.
On the long side, right now, I like [[CLX]], [[CMO]] and [[AIZ]].
AIZ sells property insurance to banks taking possession of foreclosed homes.
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