As you may know, 2012 is the widely predicted year of complete economic breakdown. Even if things don't collapse entirely there are a few very serious roadblocks in terms of debt, spending, and available capital that will have to be dealt with during the course of the year.
Potential Roadblocks:
- FOMC rates and stimulus decisions: they've pledged to keep rates low until 2013, but what happens when that's not enough? If a bear market hits the US pressure will be put on the fed to create stimulus, and if it doesn't, it could easily trigger the next great depression.
- Elections: the market may react quite negatively depending on who gets elected.
- Potential debt ceiling issues
Wednesday, December 28, 2011
Friday, December 2, 2011
Two baskets of equities I will be trading.
In times like this, when everything in the market seems to be coupled together, I like to stress having positions both long and short. Thus movement in the dollar that effects equities will largely be offset. That being said, here's a basket of financials i'll be shorting and other things i'll be long on.
Short Basket:
MS
BAC
P
DAL
Long Basket
GLD
USO
RIO
KMP
Short Basket:
MS
BAC
P
DAL
Long Basket
GLD
USO
RIO
KMP
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