Uh oh! Our Numbers Up! Realization Time. Money Update January 25, 2010

Marc's Notes:

Markets sold off last week by 5 % or so on news that Fed Chief Ben Bernanke might not get re-nominated. That was all bluff, puff and smoke. Washington politicians are getting hate mail from Americans on all the bailouts and are now trying to find a fall guy, or at least a fall issue. With the 500 point fall, dissenting politicians got an earful about Bernanke’s nomination and as early as Saturday am, the headlines were ablaze with Senators and the like coming out and saying they support Bernanke. The 500 point fall scared them and their handlers, so like I said in a newscast last week, Bernanke WILL get re-nominated, you can count on it, if not just for the fact they don’t want the markets to get all squirrely on the appointment of a new Fed Chief. It is a sad day when we appoint a man based on what the stock market might do instead of appointing the right man for the job. Washington now only cares what the stock market does and not about doing what’s right.

Meanwhile banks continue to pay RECORD bonuses while using taxpayer money to gamble in the markets. It is the main reason the market rallied from 6500 to where it is today. Records show the retail (mom and pop) investor is not the major player in the last year in the market. Banks are showing profits ONLY in their trading (gambling) and not in their retail lending arms. In fact THOSE arms are posting losses and INCREASING.
The money is running out (I told you it won’t be enough) and when it does run out, the markets head south again.

Existing home sales plummeted again due to the loss of the home buying credit (tax money, YOUR money). With the NEW credit, home sales will be helped temporarily but not for long or for very far. I keep saying, without FED money, there IS no recovery. The problem is the FED money is borrowed. From you, and your children, and their children.

Shadowstats.com came out with a STUNNING figure showing the 2009 Government deficit not an eye-popping 1.9 Trillion, but a literally “pass out on the floor” real deficit figure for 2009 of 9 TRILLION.
FOR ONE YEAR!  Yikes!  If true, we don’t have long and “you really ain’t seen nuthin” yet”!  
Holy Cow!  9 Trillion? In ONE YEAR?

With all the money we KNOW about and all the money we DON’T know about, this 9 trillion figure seems somewhere closer then the 1.9 trillion the Government admits to.

Voters this week ousted a 50 year Democratic seat by electing a Republican in Massachusetts. (Kennedy’s old seat). The president took note of this. The bailouts are infuriating people and rightly so. This whole thing is really too much. Things are about to go critical me thinks, so lets move on the markets.

Markets:
Alert level is raised to ORANGE as of today. The markets meager tiny bounce today of 23 Dow points is a VERY BAD SIGN. After a 500 point drubbing, you would expect a nice rally. Not so, and rightly so. Stocks are historically expensive. Fundamentals are ignored. Dividends are paltry and insiders have been DUMPING stock at the rate of 60 sells to every 1 buy. We covered this in November and December. This is a classic redistribution of shares from the big boys to mom and pop. This has been ongoing throughout most of this so called rally. Classic.
BEWARE. The markets run up is ludicrous, based on hype, not economic health. Anyone buying stocks in this market ought to have his head examined. If your financial advisor is telling you to buy stocks, fire them. That’s just plain crazy. Then ask them at what level they will sell you out in the next crash. If they can’t answer, or won’t give you an IRON CLAD Dow figure or percentage of loss of your funds, they are sheep. And sheep get sheared. They are not, in my opinion, financial advisors, but financial executioners, and you’re the bait. BEWARE. A crash is becoming imminent. Hope you have your contrary stocks at the ready.

Holdings:
No change. Most money in US Debt and Cash. The “hole” may be about to open again, and when it does, everything on the “RISK” side of the equation will get sucked in, much like it did last year.

Hold only a small amount of dividend payers, commodity stocks and the other things we have mentioned on the shows and on the website. Things are about to get interesting.

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All for now.

Keep tuned. Its about to get fun!

Marc