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Jim Cook



Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

Best of Aubie Baltin
June 9, 2010
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A Crash is defined as being a decline of 15% or more. So officially we just had a crash and I believe that after a bounce, this crash is far from over. So be careful not to get trapped by any rally, no matter how dramatic it may seem to be in the short run.

As I have often stated: Markets do not move in straight lines. There are always dramatic suck-in reversals. Wednesday’s decline generated lower closing lows, even below the Flash Crash closing lows of May 6th or the lows of May 7th. This is deteriorating action, not bottoming action.

Warning: Stocks are very likely in a catastrophic “DOWN” Elliott Wave (I of 3) or (1 of C) “DOWN”. This is a very dangerous market. Last Thursday's internals were some of the worst that I have ever seen.  I  admit that I missed the February to April 2010 rally, and everybody is now happy that I did as I then recommended buying Contra ETF’S into the 150 point rally days.  I may have left some money on the table from Aug until May by not going long during that rally, but it enabled me to keep a clear head and all my research was screaming that a major decline was in our near future. As a result, I was able to resist the mainstream financial press' and central planner’s propaganda that “all was well with the world”.  I can’t help it I am a natural born Contrarian.

My best long term assessment of the current situation is hard down with a final bottom sometime between 2012 and 2016. Between now and then we should see markets get steadily worse, with gut wrenching high volatility swings. REMEMBER Markets do NOT move in a straight line. The Government refuses to learn from the past: Every time we got our selves into the kind of trouble we were in now, whether it was Kennedy, Reagan, Clinton or Bush, although they all cut interest rates (rates were never down to anywhere near zero), it was massive tax cuts, privatization and reduced regulations that turned the economy around. G. W. Bush, after the melt-down of 9/11, created 20 million jobs between 2003 and December 2007. Not because of falling interest rates, but because of massive tax cuts that are about to be reversed come January 2011.  Can we survive the next 2 ½ years of vilifying capitalism while promoting ever increasing socialism?

The technical charts and patterns are warning that a complete economic and financial collapse is approaching the point of NO RETURN. The charts forecast stock markets collapsing, not bottoming, until sometime between 2012 through 2016.