Wednesday, June 08, 2011

Lower Lows, Worser News!

jim rogersThe lower we go, the worse the news gets! Or at least the predictions.

Now, lets cut Jim Rogers some slack. He's had some terrific calls and has largely been right for the past decade. The US debt numbers are staggering, and there is no desire to reduce government spending. The more the government spends, it seems the longer the crisis goes on.

I recall someone who said (paraphrasing), "If you put the federal government in charge of the Sahara desert, within 5 years it would run out of sand."

Still, I don't recall too many news headlines like this one prior to the beginning of May. And it seems the headlines get more and more dire the lower the SP500 ticks. Maybe it's good news for a reversal of sorts.

I recall it wasn't that long ago that I said I suspected that the market was in a trading range that would see the indexes revisit the March lows. Heck, we're almost there already.
Still long the SP500 for a trade. Hasn't hit my stop at this point. Being a little patient right now, and still riding a lot of this in low beta stuff, cash, and still some oil.

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