The ingredients of a Perfect Financial Storm in no
2. China (slowing growth, possibility of a hard landing)
3. Unsustainable profit margins of U.S. corporations;
over-valued U.S. stock market
4. World-wide recession in 2013
5. Continued & extreme political dysfunction in the
6. Iran/Israel/United States (possibility of war).
8. Wide-spread but misguided belief that central banks can
fix all things.
Even though our markets have corrected sharply I remain
bearish. No doubt we will see strong rallies. But I think they are bound to
fail. In any case, I see little reason to be long stocks. (Your cash, by the
way, will probably be gaining in value due to strong deflationary forces around