BAIL, BAIL, BAIL THE BOAT
The Well-Timed Strategy for Week Ending September 19th
by Peter Navarro, Ph.D.
September 15, 2008
Market Pulse
It remains extremely difficult to make money trading stocks on the long side of any major market. From Europe and Latin America to Asia, major stock exchanges remain in a bearish downtrend. In addition, both gold and oil are short sells – a bullish sign for those worried about stagflaflation. The underlying problem is a global recessionary downshift compounded by an unresolved credit crisis that weighs like an anchor on the hopes of any quick recovery. Meanwhile, after abandoning its principles on fiscal austerity and balancing the budget, the Republican Party has also become the party of bailouts – Bear Stearns, Fannie and Freddie, and maybe next Lehman and GM. Cash remains king.
Wall Street Survivor
Wall Street Survivor is a great new trading tool where you can simulate your trades. I’ve volunteered to provide weekly stock picks to teach macrotrading. I’m taking a conservative approach – no short selling. My intent is to help beginning and intermediate traders. (Under the rules of Wall Street Survivor, I must make at least one trade a week. This is fine for a teaching exercise like I’m doing. However, in my own trading, I often remain on the sidelines in cash.)
Presidential Politics: Will Biden Drop Out?
Deep in the bowels of the Democratic Party, I’m sure there are a few Machiavellis trying to come up with an excuse for Biden to drop out of the Veep Stakes and let Hillary slip in. If Sarah Palin has done anything, she has exposed the folly of Obama not opting for Hillary. Hillary would eat Sarah for lunch in a debate while Biden is going to just look mean or impotent. Hillary would also have secured some of the key battleground states that Palin has opened up for McCain – including Ohio and Florida. So what excuse could Biden offer – some medical condition no doubt. Oh, they are squirming in Blue State Ville.
Quick Takes
- Go Dodgers, Go!
- As I said last week, California still hasn’t solved its budget crisis – and this WILL have macro implications for the country. The longer this soap opera goes, the worse it gets.
- Had to love the item about China buying off Costa Rica with some of its foreign reserves so Costa Rica would drop diplomatic recognition of China. That’s a big smoking gun for the political use of China’s war chest of greenbacks.
THE CHINA EFFECT
Please see my latest You Tube report.
© 2008 Peter Navarro
“Any trader or investor who ignores the power of macroeconomics over the world’s financial markets will, sooner or later, lose more than they should and if they are trading on margin, perhaps more than they have.”-- If It’s Raining in Brazil, Buy Starbucks
Peter Navarro is a business professor at the University of California and the author of the best-selling investment book If It's Raining in Brazil, Buy Starbucks and The Well-Timed Strategy. His latest book is The Coming China Wars: Where They Will Be Fought, How They Can Be Won.
Contact Information
Peter Navarro Irvine, California USA | Email | Website | Editorial Archive
