Yo GeronL—I have concluded that something very bad will happen to the stock market in the Oct-Nov timeframe. That assessment is being validated almost on a daily basis from objective financial analysts.
Unemployment is the key component. There can be no economic recovery without the rate of unemployment being first slowed and then moved into positive numbers. We’re nowhere close and there is no reason to believe it will get better—despite carefully couched lies coming from the WH and Bernake. It is simply impossible to materially improve house sales and manufacturing without people working.
On Tuesday I took steps to protect as much of my investments as possible. My premise: Immediately withdrawl from the stock market to the extent that it made sense to do so. I have two IRAs plus a gaggle of other stocks in my portfolio. Here’s what I did:
1. Sold all my losers (including AIG).
2. Retained my “performing” stocks. At some point the market will come back. This assumes that The Marxist Onada and his crowd are sent packing at some point and that his policies are dismantled.
3. Converted a number of my IRA stocks to gold and silver. The remaining IRA investments will be covered by FDIC.
This is a short term plan meant to protect as much of my money as possible. I can always get back into the stock market if the disaster does not materialize or after it’s run its course.
I think its going to be worse and longer than you seem to think, I don’t think THEY care if it goes bad.