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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

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 Puru Saxena
June 11, 2009
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Global markets are overbought and due for either a correction or consolidation. We're now in the seasonally bad time of the year and the best outcome here would be a mild correction. From a sentiment perspective, most investors have factored in the 'green shoots' and they've positioned themselves for a near-term economic recovery. For sure, certain economic data is pointing towards some improvement, however (so far) nothing has been done to help the distressed homeowners. The West is dealing with a massive debt overhang and policymakers are only transferring private-sector liabilities to the state. These gigantic losses are real and politicians have decided to distribute them amongst the unsuspecting public. Unfortunately, a second wave of foreclosures is now creeping in and we may not get a swift and robust economic recovery. If the housing situation worsens, then all bets will be off and the financial markets will probably face a sharp decline. At this stage, we think any correction will end above the March lows and we're sitting on a large cash position to capitalise on such a weakness. After the horrendous crash last autumn, it is unlikely that the markets will continue to head higher without a rest. Look; market risk is currently high based on technical and sentiment indicators and we'd recommend that you keep roughly 50% of your investment portfolio in cash. This way, if the market moves higher, you’ll still benefit but if we get a correction, you’d be able to re-invest at lower prices.