I have been 50% short since 1126 on the last S&P run up. If we get a bounce here I will go 100% short. Be careful out there people.
Soon after the "Bank Bailout" was implemented, I began selling all of my stocks except for commodities and what is my 401K (about 20% of all my portfolios).
I've been buying gold and silver mining stocks since then and have doubled the value of my portfolios (exerpt for my 401K) over the last 12 months. This is because gold and silver mining shares fluctuate more than the value of the commodities themselves, and I buy on the dips.
I still plan to buy gold and silver mining shares and am currently just holding the other mining and oil stocks.
Even so, shorting U.S. stocks seem to be a good idea.
http://www.csmonitor...rd-a-double-dipSlouching toward a double dip (excerpts)
By Robert Reich, Guest blogger / July 5, 2010 The economy is still in the gravitational pull of the Great Recession and all the booster rockets for getting us beyond it are failing. The odds of a double dip are increasing.
In June the nation added fewer jobs than necessary merely to keep up with population growth (private hiring rose by 83,000 after adding only 33,000 jobs in May). The typical workweek declined. Average earnings dropped. Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year.
So what are we doing about it? Less than nothing. The states are running an anti-stimulus program (raising taxes, cutting services, laying off teachers, firefighters, police and other employees) that’s now bigger than the federal stimulus program. That federal stimulus is 75 percent gone anyway. And the House and Senate refuse to pass another one. (The Senate left Washington for the July 4th weekend without even extending unemployment benefits for millions of jobless Americans now running out.)
The second booster rocket – the Fed’s rock-bottom short-term interest rates – are having almost no effect. That’s because jobs and wages are so lousy that consumers don’t have enough money to buy much of anything, making small businesses bad credit risks and causing big ones to sit on the huge pile of cash they’ve accumulated.
Wall Street and the other biggest global banks, meanwhile, are making piles of money betting against government debt all over the world. These were the same banks and financiers, remember, that were bailed out by government not long ago. But now they’re demanding fiscal austerity, and politicians are once again doing their bidding – cutting deficits in every rich economy that should now be doing the reverse.
Edited by bobdrake12, 05 July 2010 - 07:27 PM.