Good evening DJ, I read this prudentbear.com as you suggested, and feel slightly less uneasy, knowing that the system will probably collapse and thus be cleansed, making way for a new and brighter day.
[EDIT: I know, I know, Maurice will say ‘what collapse?’ Do not worry about it Maurice, just buy Q; so far it hasn’t worked to ward off the evil of capital loss, so maybe the cold logic of bear market will change and have Q go up while all else fries]
I was surprised by the corporate debt to net tangible asset ratio. I fractal-scaled down to images of leveraged families and up to balance-sheet state of cities, nations and currency blocks. The collage of debt is unattractive, and the tapestry of derivatives is nasty.
The basic premise of our investment activities may be ‘there is not very much out there that will be worth more than they are now’; fundamental goal of our maneuverings remains ‘to do better than the next chump’; primary objective may be ‘asset protection’ as opposed to capital gain or current income; and the way to achieve the objective may be to ‘opt out of the system as much as prudently wise’.
We stand enough of a good chance at experiencing either a fractal-scaled Japanese Implosion or Argentine Collapse, and so better assume the brace position.
Ok, must go, time to watch the X-Files, followed by Star Trek, the Next Generation.
Chugs, Jay |
