Monday, April 6, 2009

As Deflation Rages...


...islands of wealth will emerge as the water level falls. Short them. Nothing is safe.
Posted by fdralloveragain at 9:28 PM

5 comments:

  1. AnonymousApril 6, 2009 at 9:42 PM

    FDR, can you identify these islands?

    ReplyDelete
  2. HighproteinApril 6, 2009 at 10:18 PM

    Banks that pass TiGe's stress test, still to be shorted?

    ReplyDelete
  3. fdralloveragainApril 6, 2009 at 11:38 PM

    At this point, you can safely (but with very high systemic risk) short anything that hasn't been routed. Preferably stocks with a high multiple (higher than 10 for now, or higher than 5 in the coming years). The specific business/commodity isn't that important, because the trouble is a loss of currency and the overall business environment.

    Timing is important only if you want instant gratification - less than a one year outlook or so.

    Short silver/gold is a good place to be in the near term, clearly an island.

    ReplyDelete
  4. AnonymousApril 7, 2009 at 9:15 AM

    I see where you are going with this. The tide will make the drought look mild.

    Buy a depth finder to avoid sand bars

    ReplyDelete
  5. AnonymousApril 7, 2009 at 9:29 AM

    FDR. Can you give us a sign, oh FDR?

    He has, he has given us a shoe. Let us follow this shoe, and then wait for the other one to drop.

    He is the Messiah. I should know, I followed a few.

    ReplyDelete

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