2006 is COMING!
It will be bleak.  Be prepared.

Why pay sky-high prices today, when an historic FIRE SALE is coming?


FUNDAMENTAL PICTURE: US Dollar, War economy, Housing Bubble and Inflation.

Bottom line: 2006 will show sluggish growth under 2%, no growth or perhaps even an outright  recession!

 MARKET PSYCHOLOGY: THREE MARKET FAIRY TALES FEW STILL BELIEVE
  1. HIGH OIL PRICES DON’T MATTER.
  2. THERE IS LITTLE OR NO INFLATION.
  3. THE US ECONOMY IS STRONG AND HEALTHY.


TECHNICAL PICTURE

 A reasonable case can be made that the 2005 market top is in. If so, it is only a question of what to sell and when (ideally into the post tax season May rallies).

 
CYCLIC PICTURE

2006: In the 4 year presidential cycle, this is often a down year (witness 2002, 1998 etc.) 

 
ASTROLOGICAL PICTURE

 
GOLD AND DISTRESSED INVESTING

 

The following are a few potential courses of action investors are advised to consider by this Summer:

1.      Reduce margin in your securities account to 0.

2.      Consider selling what you personally would not dream of buying at current pricing or placing a close stop to protect profits.

3.      Explore whether writing covered calls or buying some put protection or a Bear Fund makes sense for your portfolio.

4.      Accumulate gold and/or gold stocks in May/June.

5.      Make a wish list of what you want to buy with the cash you have or will raise. However, don’t be in a rush to buy until there really are bargain basement price sales as CASH WILL BE KING in 2006.

6.      Take a vacation!


AFUND picks and link sources to the Bearish Web:
PrudentBear.com
Hot financial markets giving rise to talk of collapsible mega-bubble
Fiend's Super Bear Page
Safe Haven

To be continued.