The Bonehead Investor!

BACK! And I am going to piss a lot of people off!

2019-10-03T09:19:00.000-07:00

Well it has been way to long since my last blog. God, it has been years. Quick update since I last posted.

Personal Portfolio is up! 3 year return has been 22.98% and 5 year return has been 17%. Yes those are the true numbers and I will expand on why I am getting these returns. As many of my old followers know, hiring a stock advisor, broker, planner or whatever they hell they call themselves this year is a recipe for failure. As I have discussed before, brokers and agents have one goal and one goal, to take your money. Why in the hell would you allow anyone to manage or invest your hard earned money? Most people will tell you they do this because they do not know what they are doing in the marker and or have never had any education on financial planning. And believe me that is totally acceptable since we are a society who prides itself on keeping our people uneducated on financial planning. But we are the world's best in spending more than we make and taking on debt like no other nation. Sad.... US Debt Level.

But do not be afraid! That is why I built this blog site. To give everyone a chance to learn about investing and for free. Knowledge is power and the first step to gaining control over your financial prowess, fire your damn financial advisor now! Why Financial Advisors Suck!. So now you have fired your advisor, now what? Well let's talk.

First, what do you like? What is your passion? Shopping? Cooking? Hobbies? These are the first things you need to discover about yourself before you go tossing out your damn hard earned money to stocks you have no clue about or what these companies do. I mean really, how the hell can you invest in Boeing or or some obscure biotech company if you have no idea what these companies really do or products they produce. This is exactly what shit financial advisors will do to you. They will ask you the vague questions like "what is your risk tolerance?"or "can you handle a 20% loss in your portfolio and not panic?". Jesus Christ, who comes up with these questions? Hell yes you should panic on a 20% loss, especially when you have a "pro" managing your money. Take control yourself! Look around, study what you like and then look at stocks that would fall into those categories for you! Let me give you my examples.

For years I have loved Apple products. Love the phones, love the iPads and love the Mac's. Hell I live on them. So yes that is a stock I could like and invest in. I understand what the make and where they want to go. That is why I invested so heavily in them years ago and have made unreal profits over the past few years. And I will continue to invest in Apple until I see something that does not make sense to me and dump the hell out of the stock. You buy and hold stocks you know and understand. You sell your stocks the minute you don't understand the business model. Another example for me is Microsoft. Hell I have been using there products for years. Word, Excel, PowerPoint and everything else. I also work in the the technology industry and understand the mythical "Cloud" and yes Microsoft is a leader in Cloud technology. So again, I have invested heavily in this stock over the years and made huge profits! You just need to look at what you like and understand. But wait, what if I can't identify what I like? No worries!

If you are not able to understand the stock market, yet, and I will fix that for you, then park your hard earned cash into high yield accounts. Personally I love and use Wealthfront. Excellent yield and the very best savings rates around WealthFront. There is nothing wrong with earning 2% or better while you get an understanding of the market and what you want to invest in!

I am going to close todays blog with an update on my current long positions for you all. My top investments now are Amazon, Microsoft, Apple, DHX Media and Village Farms International. Why these? So here goes. Amazon does and continues to own the world for shop at home and get what you want in a day. Amazon continues to expand in all kind of markets like global internet, space exploration, drug delivery and countless other adventures. I see no reason why this stock will not continue to be one of the best stocks to own! AMZN. Microsoft, as discussed above they are an industry leader in Cloud technology, Operating Systems and unreal gaming. Again, a must own stock for me. MSFT. Apple, do I need to even go on? iPhone, iPad, Mac Pro, Watch, Services and Healthcare. Top 3 for me. AAPL. DHX Media. Now this is an interesting one for me. Did you know they own most of all the children's favorite shows? Peanuts, Teletubbies, Strawberry Shortcake, Caillou and many others. Do you have kids? What do kids love to do? Watch these shows! Plus check out their distribution rights. Solid long term hold for sure!DHXM. And last, Village Farms International. So why them? Well for one, I love and mean love pot! I am a huge believer in the medical benefits from pot and the future of using the product promises so much help for our US Military Veterans for PTSD, help for patients with cancer and just do your research on what pot is doing for epilepsy and other terrible diseases! I am in this stock for the long term on their growth plans and the future of helping many sick people. VFF.

So that is it for today. Glad to be back and hopefully helping you with the complex financial markets! Good luck and remember, Fire your broker or advisor and take control of your life and money! And just a little goodbye from my financial team Peaches and Goos!

To Raise or Not To Raise? That My Bonehead's is the question....

2015-11-04T11:07:00.000-08:00

Well once again our fearless Federal Reserve Leader Janet Yellen or as I like to call her Old Yellen (https://en.wikipedia.org/wiki/Janet_Yellen) has once again done absolutely nothing today but put the fear of loss in the market again. This shit is getting old and for Bonehead Investors like you continues to screw you and your potential earnings in this market. Why you ask?

Ever time Old Yellen has either gone to the FRB or the HFS (look them up here if you don't know your shit - http://www.federalreserve.gov/, http://financialservices.house.gov/) she continues to spew pointless and vague useless facts that either the USA economy has been improving and or some other shit like unemployment is down so the Fed may and yes the magic word is may raise rates sometime in the future. The immediate chain reaction is the market flips the hell out and equities fall, like the did today (http://www.reuters.com/article/2015/11/04/us-usa-fed-yellen-idUSKCN0ST22V20151104#MgSrGfq6VAg6Uy5T.97).

Bonehead's don't listen to the noise of this useless leader. Old Yellen and her band of Committee Members continue to pontificate on this market and each and every time they meet and continue to spout off crap that never ever comes to fruition. As a Bonehead we can't continue to be held hostage by words and more importantly lies to the American public. We continue to hear that employment is improving, bullshit (http://fortune.com/2015/02/04/unemployment-rate-gallup/). Manufacturing inventories are improving, more bullshit (http://www.census.gov/manufacturing/m3/index.html). How can any person without a PHD understand how to invest in this market? You can't! That is why Bonehead's stick to what they know. Companies that make real products that people use and services that people want,

This is a scary ass time for the US Stock Market and I am constantly worried will crash like hell..But don't fear Bonehead's. We can't listen to the noise of the talking heads, the liars, cheats and the most evil of all brokers and financial advisers! Bonehead's stick to what you know. If you don't know what is valuable to you in a company then do not invest in this market. Stick to cash or something easy like a CD that pays a very low interest rate. I always tell investors I would rather make 1% on my money than lose 25% in this crazy ass stock market. If you believe in a company, know that it has great value and produces products and services that people want - then be fearless in your investing!

Things that I am digging now - https://www.etsy.com/listing/233209304/personalized-american-oak-aging-barrel?ref=listing-shop-header-1

Tell Your Financial Adviser "F' Off for 2016"

2015-11-02T10:10:00.000-08:00

Man - it never stops amazing me how people just like you will give away money for free and trust some asshole who couldn't care a less about making you a profit with your hard earned money.

Once again the wonderful world of USA Hedge Fund Managers have once again come out with a loss for 2015 and the only thing their clients get is an "I'm Sorry". Think about it for one second. If you are lucky enough to be a credited investor and can get into a hedge fund you would think you would at least trail the S&P. But not these assholes this year. Once again you lose they win and worse yet, if we see redemption calls ramping up like I think they will, the entire market gets screwed and these assholes running these hedge funds make out like bandits.

It is amazing that hedge funds like Greenlight Capital, Pershing Square and Glenview are missing the easy calls and losing money for their clients. I continue and will continue to preach that if you are going to invest in the stock market no matter how big or small, do your damn homework. Don't ever assume some financial adviser is going to give two shits about your return once you hand over your hard earned money. Stand up for your hard earned money and learn how to invest in the stock market. I have preached for years that you if are going to enter this market you will need know your investments and watch your money like a hawk. There is absolutely no reason you need a financial adviser unless your are wealthy enough to plan tax break investing, etc... http://video.cnbc.com/gallery/?video=3000442307&play=1

Fire your financial adviser this year and take control of your own money. Stick to what you know. Avoid all mutual funds (high ass fees) and pick stocks that you know have value and provide products and services that people want and use. Recently a young investor asked me what to invest in and I turned the question back to him and said what do you believe in? He could not answer this simple and easy question. What do you believe in? What companies do you find value in and use their products or services?

For me and the Bonehead Investor community I stand by my investments in companies that provide world class products and services. For me companies like Apple http://www.apple.com/ and NetFlix are amazing investments for now and the future! https://www.netflix.com/

Stand up and take back your financial freedom! Don't be a sucker for Wall Street! Be a Bonehead Investor!

Careful Out There! Sharks are in the water......

2014-02-21T08:50:00.000-08:00

Constant data is coming out that 2014 is going to be another "resilient" year. Take this write up from USA Today - Can mighty Wall Street Bull keep charging in 2014? or this recent work from Forbes - Will the Bull Market extend in 2104?. As much as I would like to say and make money in a Bull market, I am more concerned that we will see a very rocky market built on Algorithmic Trading - Algorithmic Trading that kills the normal investor.

If you are a Bonehead Investor you know my motto - Day Trading is great for the day... But trying to time the market with computers doing the work now, you will get killed. This goes back to my picks for 2104. I am hell bent on VNQ and EDF to protect my money in this kind of a rocky market. (VNQ & EDV). I pick these two positions to protect in the event of a market pull back and more important a Federal Reserve surprise. If we look at the data on housing today and the true unemployment number you can quickly see why I have protected my money in these investments. Housing Market - February Housing. Unemployment - Unemployment.

Don't get caught up in the noise of the talking heads and your broker. Defend your money yourself with good education and an understanding of the market. Be a Bonehead investor and win!

The Bonehead is BACK!

2014-02-17T08:39:00.000-08:00

Well it has been a long couple of years but the The Bonehead Investor! is back! 2014 looks to be a great year for me in the market and I will continue to share my investment advice and picks. Just so we can level set let's take a look at my total returns for the past couple of years while I have been away. So here is how I have made out for the past few years.

1-Year	3-Year	5-Year
36.47%	28.35%	26.14%

2014 already looks to be off to a good year for me. I am going long as of 2/14/2014 with:

Oracle - Oracle Chart

Cisco - Cisco Chart

Vanguard REIT ETF - Vanguard REIT

Vanguard Extended Duration ETF - Vanguard Extended Duration ETF

NPS Pharmaceuticals - NPSP (Note I went in on NPSP in early 2013 at $14 dollars a share)

iShares Gold Trust ETF - IAU

I will follow up later this week on some comments of the market. Good luck Boneheads! Enjoy the picture from my new office location.

A $900 Billion Shit Sandwhich for the United States Taxpayers...

2010-11-07T13:56:00.000-08:00

As I sit outside in lovely Atlanta I have a cold streak running down my spine. Our Federal Reserve has decided and not unanimously to bail out our economy once again with a repurchase of $900 billion of treasuries. Wow, ain't that nice. So who will benefit from this move?

It is pretty easy to see that this is just yet another shame move by our government to bail out the "to big to fail" banks. Let's start with the easy banks who will benefit first, Bank of America, JP Morgan Chase and Wells Fargo. Clearly B of A is the leader of the pact with a disastrous balance sheet that really should be called a comic book. B of A has good will write offs of well over $2.8 billion dollars and a stock falling faster than a speeding rocket. B of A is screaming "help again" to the Fed's....And the Fed's have heard the screams for help...Welcome QE2

With the approval of QE2 we now have a stock market on fire (thanks to computer trades) and a dollar sinking like the Titanic. Let's not forget that we are also pissing of the Chinese and Brazil with QE2. More excitment to help with this coming US economic disaster. We have taken the first step on the slippery slope and the next step looks like the creation of an avalanche. The US consumer is tapped out, unemployment is well of 20% and job creation in the US is non existent. So how does this story of QE2 play out?

We will see a bounce in the markets through the end of 2010 on computer trades and institutional trades. We will continue to see dismal dollar investing into 401k's by those that do have jobs due to fear of the markets and not being able to pay rent or mortgage. We will bypass inflation and head straight to deflation and then and only then will the Fed's state they are "out of bullets" and we do what should have been done long ago, let the capital markets work out events on their own....

I am out of the market now going majority cash and some gold. Other than that the rest of this market looks like the making of a huge shit sandwich that we the US tax payers will have to bail out...Good luck...

Where you been? They ask....

2010-03-16T06:03:00.000-07:00

Hi Folks -

Sorry for the sabbatical. I had a lot of new events happen that took me away from investing. Getting married and honeymooning in Bora Bora is one of the events!

Anyway I am back with lot's of thoughts this month. First, let's look at the financial sector. With the Dodd Bill (http://www.politico.com/blogs/thecrypt/0908/Dodd_bill_much_more_aggressive_than_Treasury_plan.html), banks will be loving life. But it has to be the right banks. My call on this play is that banks like Citi, B of A, Wells Fargo and BB&T will do well. Why? The bill will protect these banks from financial losses in the consumer and commercial real estate market. Special legislation will protect this "institutes" from failure. After all without lending how do you expect jobs to be created? And we need jobs today (http://www.bls.gov/news.release/empsit.nr0.htm).

Unemployment also makes me think about some of the consumer stocks that could be set up to take a beating. First, and I can't believe I am saying this but I see Apple taking a huge hit on the chin over the next few months. I am not sold on the apple iPad (http://www.apple.com/ipad/) at all. I believe that Apple is telegraphing to us that they are running out of great products to support the $223.00 stock price (http://finance.yahoo.com/q?s=aapl). I think now is the time to short Apple. Sorry Apple...

Another interesting play that I am fully invested in are the following stocks - McDonald's, Yum Brands!, Altria. WalMart, Exxon and Republic Services. Why these stocks you ask? McDonald's and Yum Brands!, good food cheap....Altria, stress of losing that job......WalMart, crappy products sold dirt cheap, Exxon, we still need gas for now and Republic Services, we in the USA no matter how many jobs we lose we still make more trash then any other country in the world.......I have all of these stocks as a strong buy.

I see the USA going through some trouble times. We lost over 9 million jobs and they will not be replaced.....Something has got to give....Good luck out there.

Buy Time!

2009-08-19T16:24:00.001-07:00

Well if you know me, I have not posted in a long, long time. Iit is now time to buy C. C is a strong buy! Get in while you can.

Great Article - Are we Bankrupt?

2008-12-05T15:31:00.000-08:00

Hyperinflation here we come

By Jon Herring

There are so many headwinds and cross currents in the market today, it is all but impossible to predict what will happen in the short term. There is too much volatility and noise. So, it pays to keep your eyes on the horizon, focused on the long term and the biggest trends.

Today, I want to tell about the biggest of all possible financial trends: the eventual bankruptcy of the United States government. Or should I say the existing bankruptcy of the U.S. government?

The United States government is facing an impending fiscal crisis. Former Comptroller General David Walker calls it a “cancer growing from within.” And the wheels for this were already set in motion well before the financial crisis. With ongoing wars in Iraq and Afghanistan, a costly stimulus package and falling tax receipts, the U.S. was already neck deep in debt.

A Trillion Dollar Deficit?

Even before the bailouts, the Office of Management and Budget (OMB) projected that the 2009 federal deficit would be nearly $482 billion. Since then however, our government has jacked up spending by the trillions. In just a few months, we have already charted a course to triple that deficit. Some experts even suggest the 2009 deficit could be as high as $2 trillion!

But, believe it or not, this is just a drop in the bucket compared to the big picture

The True Scope of America’s Fiscal Problem

Richard Fisher is the CEO of the Dallas Federal Reserve Bank and a member of the Federal Open Market Committee (FOMC), which sets interest rate policy. In a speech in May of this year, he stated that the total U.S. debt – including Medicare and Social Security

– is more than $99 TRILLION!

Along the same lines, Laurence Kotlikoff, a Boston University economist, suggests that the “fiscal gap” – which is the difference between the number above and what we could reasonably expect to collect – is $66 trillion.

That is the definition of bankruptcy. It is just a matter of time. The scope and impact of our liabilities are stunning. But let’s play devil’s advocate and consider where this kind of money might come from.

How can we possibly meet our obligations to retirees… as well as service our debt to foreign governments… and still operate our own government?

It Won’t Come from Cuts in Spending

Let’s listen in on Fisher’s speech and consider what kind of spending cuts we would have to make to close the gap on what we owe:

“To fully fund our nation’s entitlement programs would be to cut discretionary spending by 97 percent. But hold on. That discretionary spending includes defense and national security, education, the environment and many other areas, not just those controversial earmarks that make the evening news. All of them would have to be cut—almost eliminated—to tackle this problem through discretionary spending.”

So, just to meet our current and future obligations, we would have to virtually clear out Washington, D.C. And these changes would have to be made to perpetuity. Now, Ron Paul might have cut government back to its constitutionally mandated functions, but don’t expect anyone else in Washington to even consider the notion. Congress has shown that it has NO moral regard for the long term economic viability of our country.

It Won’t Come from Tax Increases

Even if we did cut the government back to the bare minimum (which we won’t), that still wouldn’t solve the problem. We would also have to raise taxes. By how much? Back to Richard Fisher:

“Similarly on the taxation side, income tax revenue would have to rise 68 percent and remain that high forever. Remember, though, I said tax revenue, not tax rates. Who knows how much individual and corporate tax rates would have to change to increase revenue by 68 percent?”

We already don’t collect enough tax revenues to pay the government's budget. And with a recession taking hold and a depression on the horizon, where are the tax revenues going to come from? Taxation is simply not an option for this kind of money.

We Can’t Borrow it from Ourselves

During World War II, we borrowed the money we needed from ourselves. But Americans had a high savings rate then. This is no longer true. Most Americans are upside down, with credit cards, mortgages, cars and other loans… not to mention growing unemployment.

It Won’t Come from Foreigners

For many, many years, the U.S. government has been able to pay for anything and everything we wanted to by borrowing the funds from other countries. We didn’t even pay for the Iraq war… it has all been borrowed money. But other countries are beginning to balk, and for a variety of reasons.

For one thing, the countries that do have reserves to lend us are turning their attention inward. Just this week, China began to shift its policy away from plowing reserves into forex and instead is investing internally (the Chinese government announced more than a half a trillion-dollar internal stimulus package this week).

This is BAD news for the U.S. government bond market. Just as America’s spending goes parabolic and we need to sell more debt than ever, the biggest buyer just left the trading floor.

Increases in spending and liabilities along with decreases in foreign lending equals a recipe for disaster.

So, where will the money come from?

This is a job for the printing press.

While we are certainly facing deflation in the near term and a very choppy market, the groundwork has been laid for hyperinflation, soaring interest rates and exploding gold and silver prices. So forget about the short term cross currents, and focus on the long term trends you can bank on.

States now failing. Well, I told you so....

2008-10-29T10:39:00.000-07:00

Now the other shoe is dropping. Enjoy.

WASHINGTON — Saying that the federal government needed to help states avoid further financial turmoil, Gov. David A. Paterson asked Wednesday that Congress immediately provide state governments with a rescue package similar to the one it approved for the banking industry.

Gov. David A. Paterson of New York, with Gov. Mark Sanford of South Carolina, at a Congressional hearing in Washington on Wednesday.

Appearing before the House Ways and Means Committee, Mr. Paterson said that New York was already moving to address a budget deficit that he has estimated at $47 billion over the next three and a half years, but that it wouldnot be enough.

“The great states of this country right now are facing huge deficits without the resources to affect it,” the governor said.

The hearing, called by the committee chairman, Representative Charles B. Rangel, also included Gov. Mark Sanford of South Carolina, local officials and union officials. The officials advocate that Congress provide more direct assistance to cities and states as they deal with the effects of the banking industry turmoil.

“We are cutting all we can,” Mr. Paterson told the committee. “Therefore, we feel that targeted, sensible actions by the federal government will provide relief for us now.”

Mr. Rangel praised Mr. Paterson, a longtime friend, for his leadership on fiscal issues.

Mr. Paterson’s appearance on Capitol Hill came a day after he called on state lawmakers to put forward ideas on how to reduce the state budget in preparation for a special legislative session he has called for Nov. 18.

In written testimony he submitted to the committee, Mr. Paterson was even more pointed, criticizing the federal government for not preventing the current economic upheaval and for its lack of attention to the states.

“I firmly believe that if it took only two weeks for the federal government to find $700 billion to bail out Wall Street and bank executives,” he said, “then we ought to be able to find a fraction of that amount to help preserve essential services at the state level.”

He added, “The results of federal inaction could be devastating in every corner of our nation.”

In the written testimony, Mr. Paterson repeatedly invoked the economic damage resulting from the Sept. 11 attacks, saying that the threat to New York’s economy was in many ways far more severe now than it was then.

He said New York and other states were on the verge of finding themselves unable to provide essential social services like unemployment benefits and food stamps and needed federal assistance.

“Just like the financial services industry, we need a partner in the federal government in order to help stave off an impending calamity.”

Mr. Paterson said Congress could help bring relief to the states by increasing spending on food stamps, increasing block grants to states and providing federal dollars to repair roads, bridges and water treatment facilities.

OPEC Idiots!

2008-10-25T06:52:00.000-07:00

My God. Check out this headline today. People of the USA, stand up now and shut this idiots down! Walk for God's sake to the grocery store or anything under a mile and you will help shut OPEC down for good!

OPEC Says It Will Cut Oil Output

VIENNA — Stung by what it called “a dramatic collapse” in crude prices, the OPEC cartel said on Friday that it would reduce output by a steeper-than-expected 1.5 million barrels a day. But that action failed to brake the price decline, and oil dropped 5 percent more by the end of the day.

The oil cartel swiftly agreed to the cut in an emergency meeting at its headquarters here, and its president suggested afterward that still more production cuts were coming as OPEC struggled to get ahead of an economic slowdown so severe it could leave the world awash in oil.

The stunning decline of oil prices in recent weeks has left oil-exporting countries fearful that they will have to cut government budgets, including the popular social programs that cement many leaders’ hold on power.

Oil dropped to $64.15 a barrel on Friday, from a high close of $145.29 on July 3, a 56 percent decline in 16 weeks and one of the steepest in the oil markets.

If prices keep falling, OPEC’s president, Chakib Khelil, said the cartel would “definitely” reduce its production again in coming months, either when it meets in Algeria in December, or sooner.

The Disposition Effect...

2008-10-11T04:53:00.000-07:00

..what psychologists call the inability to confront financial losses.Thanks to Nanci, for this one.

I find it absolutely amazing that we as a nation still can't look at this market and realize it is a time for change in how our banks and markets operate and function. The G7 is meeting this weekend to solve our crisis. Be prepared for more pain.....Talks of another economic stimulus package are arising again. Did you see how that last stimulus package worked out for us?

This mess we are in is really just in it's infancy. Our capital markets are at historic lows and going lower. The dollar can't hold up to the yen or hell even the peso. Our elected public officials are so over their heads right now and corporate greed is still running ramped. Will it stop? Maybe...

Today we are a nation having to take a hard look at ourselves in the mirror. Do I like what I see? I do, but it really depends on which angle I am looking at in the mirror. On the bad side angle of the mirror I see a nation that is searching for guidance and direction. I speak to small and large investors daily and the common denominator of our conversations are that they don't know what to do with their investments. They are truly in in the grip of fear. They are truly acting out the the disposition effect. I also continue to see a federal government that is nationalizing banks and businesses, passing out stimulus packages and slowly turning our nation towards a socialist society.

On the good angle side of the mirror I see a nation that has the best and brightest minds. I see a nation that makes it happen. I see a strong nation. I see a nation that needs a kick in the ass. I see a nation that will will recover, learn from this colossal mistake and move forward. But all of this will come at a price. America will regain their confidence!

That price of our recovery will be painful. We will see a loss of jobs, small and big businesses and paper wealth will evaporate. Spending will change for the consumer and wealth will have to be rebuilt. Are these losses a bad thing? Not really. We will learn a valuable lesson from these failures. A new generation will be able to realize that we have to live within our means. We will have to make adjustments. We will have to do without and be happy.

A new market is being made now. This is truly historic for all of us. Embrace the change.

The Bailout.

2008-10-03T09:08:00.000-07:00

Well it is getting close to the hour of the bailout. Will it happen? Most likely yes. Will it matter? In my humble opinion it will not. The damage has been done.

For those of you who follow me you know my greatest fear is that the average US citizen has zero savings. Most, in fact, about 96% of the US can't make it a week without a paycheck. How will this bailout help them. It won't.

Once and only if the few banks that will be around can get back to lending, the lending requirements will be like climbing Mt. Everest. Think about this for a moment. The average US consumer credit score is between 690 to 720. Banks were charging huge interest rates to these consumers when they could lend. What do you think it will be like when they start lending again? The average consumer will not qualify for a loan. This will soon be a painful wake up call for America.

To compound this problem the consumers who do have credit are now being notified that their credit lines are closed and until they can pay what they owe they have no available credit. So what is the consumer to do? No credit and no savings makes for a messy problem. Food, gas, heat, shelter all cost money.

The capital market has a unique ability to flush out bad planning really quickly. The US has been in a bad planning mode for sometime now. The warning bell rang 13 months ago and we ignored the ominous signs that the financial markets were in trouble. Readers this is bad. Very bad.

So now what. My predictions:

Bailout goes through, barely
FDIC limit raised to $250k and why? Who has $250k in cash laying around......
Banks either gobble each other up or we see massive bank failures
Mark to market kills accrued value. Assets will be significantly reduced across the board
The treasury lines and discount window will not be enough to tie banks over or cover "toxic" debt
Financial markets will freeze up again in about 25 days. Enough time to attempt to flush "toxic" bad debt
Short selling banned for another 30 days
More panic sell off by the average 401k holder and small time investor
DOW 7300
Money Markets hit .96 cents for $1. Money Markets will be a thing of the past very soon
Hedge Funds will collapse and then the fun really starts.....
Once market goes into free fall we will see massive layoff's
Layoff's will have to be funded by State Unemployment
States will now rush to Federal Government for bridge loans to stabilize their businesses
Federal Government will have no money to lend
Next, study the history of October 29th, 1929

Our leaders failed the US citizen. But we really failed ourselves by not taking responsibility and live within our means. Good luck.

Citigroup to buy Wachovia banking operations!

2008-09-29T07:07:00.001-07:00

My predictions are coming true. So far I am 100%. My next prediction; Fed's get bailout, savings help or whatever you all call this bailout approved. From there we will see a market crash like never before. Think about this, where will all this bad debt go and who will pay for it. You and me my brothers and sisters.

The idea of taking your money out of the bank and putting into your mattress might not be such a bad idea now. My other advice, wait before you invest this next couple of weeks.

By the way Wachovia did fail! It failed shareholders. Check out how much the officers of Wachovia made. They should all be ashamed of themselves......

Press Release: Citigroup will buy Wachovia's banking operations;FDIC says Wachovia didn't fail.

NEW YORK (AP) -- In the latest byproduct of the widening global financial crisis, Citigroup Inc. will acquire the banking operations of Wachovia Corp. in a deal facilitated by the Federal Deposit Insurance Corp.

Citigroup will absorb up to $42 billion of losses in the deal, with the FDIC covering any remaining losses, the government agency said Monday. Citigroup also will grant the FDIC $12 billion in preferred stock and warrants.

The deal greatly expands Citigroup's retail outlets and leaves it among the U.S. banking industry's Big Three along with Bank of America Corp. and J.P. Morgan Chase & Co.

The deal comes after a fevered weekend courtship in which Citigroup and Wells Fargo & Co. both were reportedly studying the books of Wachovia, which was suffering from mounting mortgage losses linked to its ill-timed 2006 acquisition of mortgage lender Golden West Financial Corp.

The FDIC asserted that Wachovia didn't fail, and that all depositors are protected and there will be no cost to the Deposit Insurance Fund.

Federal Reserve Chairman Ben Bernanke, in a statement Monday, said he supports the "timely actions" taken by the FDIC "which demonstrate our government's unwavering commitment to financial and economic stability."

Treasury Secretary Henry Paulson also welcomed the sale of Wachovia to Citigroup, saying it would "mitigate potential market disruptions." Paulson said he agreed with the FDIC and the Fed that a "failure of Wachovia would have posed a systemic risk" to the nation's financial system.

"As I have said before, in this period of market stress, we are committed to taking all actions necessary to protect our financial system and our economy," Paulson said.

The sale of the Wachovia assets comes just days after the government's seizure of Seattle-based Washington Mutual Inc. -- the largest bank failure in U.S. history. As details of its takeover unfolded, Wachovia shares plunged 91 percent in Monday premarket trading to 91 cents. The stock had closed Friday at $10, down 74 percent for the year.

Wachovia has been among the banks hardest hit by the ongoing crisis in the mortgage market. It paid roughly $25 billion for Golden West at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments.

Warren Buffet - His Plan is in the works....

2008-07-26T07:27:00.001-07:00

I have been discussing the idea that Warren Buffet is making a play to single handedly take over the USA banking market. People told me I was nutt's. Who is laughing now? Next, Wachovia and many, many more....

Mutual of Omaha Bank to Acquire Deposits of Failed First National Bank

OMAHA, Neb., Jul 25, 2008 (BUSINESS WIRE) ----Mutual of Omaha Bank has agreed to acquire from the FDIC the deposits of the failed Reno, Nev.,-based First National Bank of Nevada and its affiliate, First Heritage Bank of Newport Beach, Calif., the company announced.

The transaction includes all deposits, both insured and uninsured. All former branches of First National Bank of Nevada (also operating as First National Bank of Arizona) and First Heritage Bank will open Monday as branches of Mutual of Omaha Bank, and all depositors will automatically become depositors of Mutual of Omaha Bank, said Jeff Schmid, chairman and CEO of Mutual of Omaha Bank.

Federal regulators on Friday declared First National Bank of Nevada and its affiliates insolvent and the FDIC was named receiver. The FDIC Board of Directors approved the assumption of more than $3 billion in deposits by Mutual of Omaha Bank. FDIC will retain most of First National's loan portfolio.

"We would first like to reassure all customers of First National Bank of Nevada and First Heritage Bank that all their deposits are safe and accessible." Schmid said. "Their deposits will automatically transition to Mutual of Omaha Bank and we will be open for business on Monday morning."

First National Bank of Nevada operated 15 branches in Arizona and 10 branches in Nevada. First Heritage Bank, which specializes in commercial banking, operated three locations in the Los Angeles area. As of Monday, all became branches of Mutual of Omaha Bank. The acquisition also includes two First National operations: the Wealth Management Division and Community Association Banc, which serves neighborhood and condominium homeowners associations.

"We look forward to welcoming former First National and First Heritage customers to Mutual of Omaha bank and earning their business," Schmid said. "We are committed to being a community bank - locally managed with a strong focus on serving on serving the individuals, families and businesses that are our neighbors."

The acquisition of these accounts aligns with Mutual of Omaha Bank's growth strategy of expanding into fast-growing markets where Mutual of Omaha has a strong brand presence and base of insurance customers, Schmid said.

Mutual of Omaha Bank currently has more than $750 in assets and operates 14 retail branches in Nebraska and Colorado with commercial lending offices in Dallas and Des Moines, Iowa. It is a subsidiary of Mutual of Omaha, a 99-year-old insurance and financial services company with more than $19 billion in total assets and very high ratings from the major ratings agencies.

Bull or Bear Market? What say ye?

2008-05-25T08:18:00.000-07:00

I quick write up for the masses. Are we in the midst of a bear or bull market? I am including a graph for you to help make up your minds. One thought to remember before you let me know, humans have an extra ordinary skill of making really bad decisions because of emotions.

Read the data and let me know which camp you are in, bull or bear.

Disaster Knocking at the door of America.

2008-05-08T11:59:00.000-07:00

The political and financial reputation of America is sitting on a slippery slope of disaster. Relief checks are out. Gas prices are shooting through the roof. Home prices are off some 10% - 30%. Financial firms have still not revealed their true losses. And of course I have saved the best for last, a political fight of biblical proportions is a brewing. God this sounds like the makings of a blockbuster movie! To bad it is real.....

Can it get any worse? Oh yes. One of my favorite analyst, Bill King, just released this little note:

"Because the US financial system did not implode when Bear was rescued, people assume all is well in the credit markets and financial system. This is a gross miscalculation. The Fed proved this last Friday when it expanded its record credit-creation gimmicks and loosed collateral standards to a new all-time low."

Better yet how about this quote from Morgan Stanley economist Richard Brenner:

"The economic fallout begins: Financial turmoil peaked six weeks ago, but the economic downturn is only beginning. It’s still a recession, in our view, and that’s no longer in the price. Indeed, reflecting higher energy quotes and slipping growth abroad, we see weaker US growth over the next few quarters than we did a month ago..."

It is safe to assume a couple of points of financial interest. Are we done with the fall out of the banks? No way man. We are just at the top of this giant wave getting ready for the ride of our lives. My opinion is that we will see one of the majors like Wachovia, Citigroup or B of A take a dive. B of A is prime for failure with the Countrywide bailout on their books. A closer look at the banks shows that they are dealing with unresolved uncertainty, consumer loans cracking, commercial headaches, less lending and shady swaps.

Our government can't bail them all out. Again, this is a capital market. You win some and you lose some. Banks and investment firms are going to take a beating. Can we see a collapse of the banking industry? This is a tough one. With the savings rate in the USA at a negative and the IMF rate at .5 and a deficit blowing up, well, you get the picture.... It ain't pretty.

And let's not forget the politics of the USA. Many of my friends tell me they are scared that Obama is going to win the elections. Hear me know and listen to me later, he will not win. McCain will take the White House and the Democrats will take the House and Senate. Fine by me. I really thought that Hillary had a shot but her opportunity is over. I am fine with McCain in the White House. We will continue to have 4 more years of conflicts overseas, government spending will increase for the conflicts, my stock recommendations will continue to go up (See my 2008 Stock Picks) and we will see the most veto's ever recored.

My only concern with the coming elections is that Obama might have a shot of winning the popular vote but will lose the Electoral Collage. (Do you know what the Electoral College is? http://en.wikipedia.org/wiki/United_States_Electoral_College). If this event happens I predict we will see a lot of America burn to the ground in riots and civil unrest. If you study your Roman history you will see the past is living again today in the USA. Scary times. I can only hope that we solve our differences within the parties now before this happens. My bet is that we won't solve the problems and we will have to battle for change. As a side note, if this happens all of you who support the ban of guns in your home will be changing your minds very quickly.

I hate to be so bleak in these times. Our government has failed us. Our banks and investment firms have failed us and now we have to let the capital markets run the course of correction. Is there a chance to stop the correction? Tough to say. There has been talk of opening the discount window for a "lengthy period" and having to raise taxes. I think the only way to head off a major correction will be by the raising of taxes and heavy government regulation in the banking industry. But this time it will not be the rich that have to pay more in taxes, it's going to be everyone one of us. God this is going to be a good movie one day!

Am I Crazy? Capital Markets and the Federal Governemnt.

2008-04-05T09:52:00.000-07:00

Live from Seaside, FL! OK I have been away for a while on purpose. I have been absolutely amazed at what has been happening in the financial markets. Where do I start? Well let's jump on the bandwagon and talk about the Fed's intervention with Bear Sterns. Was the action by the Fed's and the Treasury Dept. legal? Constitutional? I don't think so.

Where was it written that the action of the Fed or Treasury is to bail out one of the top 5 trading firms in the world? It is not written so don't go and try to prove me wrong. What did happen was an unconstitutional action by our government of the USA to bail out a business that made huge bets on the wrong side. Why did the government jump in to save the day? You have heard statements like "we had too", "if we did not the financial market could have collapsed", etc. Well guess what? The purpose of a capitalist market place is for people and institutions to make bets on their own. If the bet pays off, people get rich. If the bet does not pay off, you lose. Since when or who in God's name changed the rules of the capital market? Can you say election year is who changed the rules of the capital market game?

I am truly scared that the actions of the Fed and Treasure has already done so much damage to the reputation of the USA stock markets that and inevitable collapse is the only course of correction. How much longer can we sit still and continue to watch the banks like Wachovia, Bank of America and the brokerage firms like Goldman Sachs and UBS continue to write of "subprime" loans? What about the other secret that the banks are not telling us about? What is that secret? Home Equity loans defaulting. This is the other shoe that is about to drop. Be prepared.

I am so frustrated that our "financial system" has failed us. I feel even worse for the average homeowner who has had to default on their loans and nobody is their to bail them out like our government is doing for the filthy fat and lazy brokerage houses and our USA banks. Worse yet is that we are in an election year and the current administration will continue to hide the massive failures of the banks and the brokerage houses. Just wait, 3 months after the new administration takes over, the "Sh*t" will hit the fan. I predict we will see massive collapse of banks and trading firms in the USA. I continue to believe that we will see the dollar fall to levels so low that the Peso looks attractive and interest rates will have to be cut to a negative number, if that is possible. Folks we can't continue to rob Peter to pay Paul without some fallout. It is coming and it will be a shock to the world.

So what do I suggest you do? Cash is king right now. If you are one of the lucky ones to have no debt then I believe that buying my recommended stocks will pay off huge. I also think that buying property is a nice option now but only if you can by from distressed buyers. Keep an eye on your cash accounts with your bank. Make damn sure they stay registered with the FDIC. I would steer clear from money market accounts over the next 10 months. I truly believe we can see these money market funds start to lose money. Be warned.

So, do I have anything good to say? Well yes. I do believe that the financial markets will work themselves out. But I think it is going to be so painful and we can see another great market crash. History has shown over and over again that our behavior has a reaction for every action. Our banks, government and investment firms have broken my heart with their theft of the solid American market reputation. It will take years to rebuild our credibility with the world. Like I tell all my friends, it is up to you to make the change. I strongly suggest you look at your government representatives and see how much money they made from special interest groups and the financial lobbyist. Vote them out and make a change for the better.

2008 Stock Pick's for the People! By the People!

2008-02-04T10:19:00.000-08:00

2008 Picks! Ya Man! Sorry for the delay all. With the month of January being so crazy I wanted to really do my homework for the picks for 2008. As you can see below I am betting defense all the way. Why? Well with the new defense budget being increased it is only logical that the stocks will benefit the right companies.

Make sure you go with the right companies that will win bids and deliver on their services.

So here goes, date is February 4, 2008:

Stocks:

Lockheed Martin - LMT
United Technologies - UTX
Precision Cast Parts - PCP
Caterpillar Inc - CAT
Starbucks - SBUX
Apple - AAPL, it will split this year. It has too....

ETF's:

Powershares Aerospace & Defense - PPA

Stock & Mutal Fund Performance Report for 2007.

2008-01-02T10:18:00.001-08:00

2007 Major Indexes

Well like any good student I need to post my report card for the picks I recommended for 2007. Here goes:

Stocks I recommended -

Apple - I but a buy in at $85.70. Apple closed on December 31,2007 at $198.08. That is a gain of $112.38. Up 132%. Thank me later with emails of love.
AIG - Buy at $69.80. Closed EOY at $58.30. Loss of - 16.47%. Crap.....Thanks Subprime..
MMC - Buy at $30.32. Closed EOY at $26.47. Loss of - 12.69%.
GD - Buy at $80.89. Closed EOY at $88.89. Gain of 9.88%.
LMT - But at $99.19. Closed EOY at $105.26. Gain of 6.12%
BA - Buy at $90.21. Closed EOY at $87.46. Loss of - 3.14%
UTX - Buy at $67.25. Closed EOY at $76.54. Gain of 12.18%
RTN - Buy at $55.18. Closed EOY at $60.70. Gain of 10.00%
NOC - Buy at $74.25. Closed EOY at $78.64. Gain of 5.91%.
GENE - I bought at $4.23. Closed EOY at $4.01. Loss of - 5.00%.

2007 Stock Pick average return is up 14.507%. I bet everything except the AMEX Composite. Oh well...

Mutual Funds I recommended (Note the mix percentages I recommended) -

Fidelity Portfolio - FDGFX Up 1.1%, FIGRX up 18.98%, FRESX down -21.34%, FSDAX up 17.81%, FSLBX down - 0.15%. My Fidelity picks average was up 3.38% total. Not to great but hell S&P 500 was 3.5%.

Vanguard Portolio - VDIGX up 10.19%, VGSIX down - 13.56%, VHDYX up 5.92%. My Vanguard picks average was up .085%. Still on the upside.

So 2007 was not to bad for the kid who does not work for the big brokerage companies. Hell I beat them anyway so who cares. I will be out with my picks for 2008 later this week.

End of 2007. Thank God. Predictions for 2008

2007-12-21T10:20:00.000-08:00

Well 2007 is all but over and thank God. Can you fricking believe the Subprime issue and the CDO's? Only in the capitalist economy can you be a CEO of CITI, ML, BS or any of the other rip off firms and burn your clients and employee's and still walk out with millions of dollars.

I have told you all over and over again these investment houses are the biggest ripoff's ever created. Hell their own analysts read my blogs all the time and steal thoughts that I have. Ain't that right the house of ML? Caught you two times.

Anyway I will be coming out with how well I did for 2007. Looks like I beat the top traders again. I am still waiting on a job offer from Bear and Goldie. Right now let's look at 2008.

Predictions:

Defense Stocks will be the way to go again. I will post my favorites in January.

Energy - This will be huge for 2008. We can expect to see India come on line and China burning up as much oil as possible. The USA still has no clue how bad off we are and continue to burn fuel like it will never run out. I hope the USA likes $4 dollar per gallon gas soon. Buy energy now.

Gold - Say goodbye to the highs of $800 and say hello to $900 to $1200 per ounce. Buy it now.

Consumer Spending - Well your house is now worth 20% less, you have a mortgage that is resetting, you got a 3% raise and your healthcare cost just went up. You credit cards are maxed to the hills, you can't claim bankruptcy and your bills are due. Consumer spending will be crap for 2008.

Inflation - Up. How much? Depends on what the Fed's do. The M1 rate is a fricking comic book so predicting this is a bear. My guess is that we jump from 4.31% (todays rate) to 6%. Get ready to move your cash to CD's.

Banking - This will be fun to watch. I am guessing that we will see a few major banks fold and have to be purchased by other big banks to bail them out. Of course the Fed's will be behind this move. First to go? Countrywide.

Fed Fund Rates? Cut again by 25 points in January. Will have to cut again right after that. We should see a 50 point cut by March.

GDP - Negative growth Q1 and Q2. Up last quarter of year.

2008 Election - Democrats win and win big. Hail to the woman......

Super Bowl Champs - Patriots of course!

Until January, stay warm!

So I am in a bar having a Guinness beer last week.....

2007-10-29T07:46:00.000-07:00

And I happen to meet an expert on bio-tech companies. So we begin to have a great conversation over the economy and what will happen with the US. We both agree that we are in for some real trouble. But that is another blog....

Anyway, let me get back to the bio-tech. So we start to have a robust conversation about DNA companies. I am fascinated by DNA testing. As we talk and drink my new friend begins to tell me about companies that will or will not be players. One of the companies that he told me about is NASDAQ:GENE.

So I did some digging and the stock looks pretty good. They just got a new CEO and they are selling some licenses to some pretty well known companies. I thought I would share this with my blog community and see what you all think about GENE.

Hit me back with your thoughts. Oh by the way how you all liking your Apples? Go baby go!

I am now Scared! Really Scared!

2007-08-21T08:19:00.001-07:00

This morning Treasury Secretary Henry Paulson goes on TV and states, "We are going to work through this problem just fine," Paulson said. He urged patience as investors reassess their appetite for risk, saying there isn't a "quick solution" to the matter. "These things take a while to play out," the secretary said. This is pure bull crap! We are in trouble.

Then we get this this morning, "Foreclosure filings rose 9 percent from June to July and surged 93 percent over the same period last year, with Georgia, Nevada and Michigan accounting for the highest foreclosure rates nationwide, a research firm said Tuesday".

In all, 179,599 foreclosure filings were reported during July, up from 92,845 in the year-ago month, according to Irvine-based RealtyTrac Inc. A total of 164,644 foreclosure filings were reported in June.

"While 43 states experienced year-over-year increases in foreclosure activity, just five states — California, Florida, Michigan, Ohio and Georgia — accounted for more than half of the nation's total foreclosure filings," said RealtyTrac Chief Executive James J. Saccacio.

Oh Snap! And let's not forget these little tidbits:

Countrywide Financial Corp., the nation's largest mortgage lender, said Monday it has eliminated about 500 jobs as it tries to ride out problems from a credit crunch that has rocked the home loan industry.

In yet another casualty of the fallout in the mortgage industry, the Capital One Financial Corp. said on Monday that it would stop making residential mortgages and close GreenPoint Mortgage, its wholesale mortgage banking unit. They will lay off 1,900.

HomeBanc, in a statement on its Web site, said it is unable to borrow on its credit facilities and was unable to meet its mortgage loan funding obligations as of Monday. HomeBanc is closed. Countrywide bought the debt and hired the employees. Wait a minute! Isn't Countywide laying off?

After weeks of troubling news and near-silence from official spokesmen, American Home Mortgage Investment Corp. announced Thursday night that it would shutter most of its operations and lay off more than 6,250 workers, including almost all of its 1,460-person Melville staff.

Ya'll think we are OK? What about those safe Money Market Funds? Read on my friends:

From the online Wall Street Journal: Shares were already lower, but selling in all three indexes picked up after CNBC reported that Sentinel Management Group, a money market fund manager, had asked to halt investor redemption's, suggesting its investors were in a "panic."Sentinel's action "was a pretty drastic thing," said Stephen Carl, head trader at Williams Capital. The news stirred up the fears about the spreading impact of trouble in the credit markets and alternative investments that have dogged Wall Street for weeks. "It's just more of the same," Mr. Carl said.

Today alone, the 3-month T-bill rate was down by over one full percentage point before recovering a bit.

The 1-month T-bill rate has plunged from 4.52% last Tuesday to as low as 1.25% today. That's not a typo! It was actually down by more than THREE full percentage points in just four trading days!

Do you think we are safe in our MMF's? How about Vanguard or Fidelity's MMF's?

Sorry ya'll I am scared. If you have been following my post I have stated the last thing we need is the Fed's to ride in and save the day. Ya'll the only thing that will fix and save this market is the capital market process. We have to let it ride out. Our banks and credit lenders have made terrible and even criminal mistakes. Many have made millions on this credit scam. We now have to pay the price.

I am terrible worried that we are only at the tip of the iceberg right now. I predict a huge plunge of up to 100 points soon. How soon? We will see a fall out in the next few weeks. We are starting to see the signs today. Have you been watching the Gold market while all of this is going on?

Seems gold is not moving, yet. Why? Well were about to open the bank window to the world with T-bills at a super low yield rate this week. Guess who will be buying? Yes our friends the Chinese. God this scares me even more. The Chinese are buying up our debt at almost any rate we give them. This is not a good sign for the US market. Debt is going to kill us and it will be a slow painful death of the consumer market. After the sell of the T-bills this week watch the gold market. When you see gold starting to jump $3 to $4 dollars up get ready for the market fall.

What do you and I do in this market? If your long like me just ride it out and watch those MMF's very closely. Are there any good buys right now? I think Starbucks is looking good. Apple looks good but let's see how much of a pullback we get this week.

Stay the course!

Am I Scared? Should I Be? What happens next? Apple (APPL)?

2007-08-16T12:45:00.000-07:00

Sorry but this blog will be a bit tart today. Follow me for the Apple stuff at the bottom.

I am really fricking tired of Jim Cramer and his sissy crew of "experts" stating that the market is going to explode, the world will come to and end and we will all be poor. And my very fricking favorite is the "experts" are all begging the Fed to come in and save the financial markets. Did you all catch that fool Jim Cramer fricking the hell out last week? See it here. http://www.youtube.com/watch?v=rOVXh4xM-Ww. I used to like him but now I realize he is a dirt bag like the others. Jim Cramer you should be ashamed of yourself as an "expert".

So we have a pullback in the market. Should I be scared? Well no way. Why? I own everything I have and I have no debt. God what a novel concept. Did you all know that when our great, great grandparents came to the USA they said a prayer each night at dinner? That prayer went like this "Dear Lord may we never be indebted to any man". Where have we gone wrong in this society? Why is debt, Paris Hilton and Lindsey Lohan so cool? What is debt? go here: http://en.wikipedia.org/wiki/Debt

Is it my fault that the guy down the street from me makes $60k a year and lives in a $600,000.00 home with an interest only loan of 2.2% that resets to 15% next week? Is it my fault that the average United States citizen carries over $22,000 in credit card balances and will never be able to pay them off? Is it my fricking fault that the mortgage companies made bad loans and now they have to pay up? Who in God's name ever said that the Fed had to bail all these people out?

TAKE RESPONSIBILITY NOW FOR YOURSELVES! Nobody and I mean nobody is responsible for you except yourself. You want that new car? Can't buy it for cash? Then get a bike or walk! Do you make $60k per year? Well you can't live in a $600,000 home you ding dong! The very best you can do on a $60k salary is maybe a $240,000 home. Do you want that new plasma TV to watch Jim Cramer on and it cost $2400? Don't have the cash for it? Then too fricking bad. Don't buy it. Debt is the devil and now a lot of people are having to sell their souls.

So how does this pertain to Apple (APPL)? Well it is pretty simple. The hedge fund "experts", mortgage companies and hell the mutual fund world has had the dreaded margin call. Except this time they don't have the money on hand. So what do you do if you are one of these retards? Sell you liquid shares. What are liquid shares? Apple, Google, etc.. are liquid shares. Any idiot knows that buying low is the way to go. And you can bet your butt that there is lot's of foreign interest buying up these super cheap stocks now.

So what happens now to Apple? Apple will get hammered for being a liquid stock and we have to suck it up. Would I buy now? I sure would! Will the stock go lower? I think it sure as heck will but I like buying on the dips. So my advice to you normal investors is stay the course with Apple and the other stocks I recommend. Defense stocks look real good now and so does the Vanguard S&P 500 Index fund.

Ignore the cries for help from Cramer and the other "experts'. You all know they are millionaires right? They are just mad the bet's they made are not coming in.

If you are a young person reading this, take responsibility right now for your debt. Don't ever spend more than you make and don't buy crap you can't have for life. Debt ain't worth it. never, ever, ever ,ever!

By the way have you all noticed all the for sale signs going up in the neighborhoods? God I would not want to have to sell in this market.

Apple (APPL) Rockets Down and I am stuck in a Regan National Airport

2007-08-09T19:49:00.001-07:00

Well you all did it. When I say you all I mean you Ding Dong Hedge Fund Managers. Yes I am calling you out, come and battle me, Goldman, Morgan and the MoMo's at UBS. You had to do it. Sell your Apple (APPL) shares to cover your butt's for the losses on the hedge funds you made a killing on.

So you true Apple investors, stay the course. See these great money managers and analysts that you all know I hate, have had to close out their positions on profitable shares (APPL) they owned to cover their losses. Yes huge losses. Good job to the hedge fund guru's at Goldman and Morgan and Merrill Lynch. When, in the name of whoever, are you going to offer me a job?

So as we move on in this ride I beg the Apple loyal to stay the course. Why? Wait until you see what Job's has to offer you in the form of video email. Man o man you are going to love it!

As for the analysts of Apple. I am now calling each and every one of you out and too a duel. I will battle you all on the pro's of Apple any day of the week. And I swear, if I ever hear those weak butt questions that you all ask Apple management on the Con call's, I will throw you all under the web bus of pain.

By the way I have decided to name Steve Jobs' as my "Hero". Steve you have won the "Hall Hero" Award! Call me so you can pick it up the next time you are in Atlanta. For those of you all out there keeping track I now have three hero's. My Grandfather, Richard Branson and Steve Jobs'. My Grandfather got three Bronzes Stars and two purple hearts. Man, this makes me feel like a real stud writing this blog.....

Now for the hardcore investors that read my blog. Watch out for the REIT's. Get out while you can. Stick with Apple and the Defense Contractors. You will see a drop in the Defense stocks this week but buy in the dips. Also keep an eye on the the finance stocks this week. AIG looks good but be careful. If we continue the dip don't panic, we are all in this for the long run, right?