cwlawrence (84.90)

Going Bearish

May 26, 2008 – Comments (0) | RELATED TICKERS: SKF , QID , REW

I will stubbornly say as I sit here, 4,000 Miles away from Wall Street, in Bangkok, that the worst of the 'Credit Crisis' is over, the Housing Market will begin to recover by the Fall and inflationary concerns will not be that bad. But I am ignorant.

Warren Buffett says there is more to come. The top players on Motley Fools CAPS are Bears. The Fed has basically said that it is done lowering interest rates in order to bail out the economy. There is little technical or fundamental evidence at this point to indicate a recovery. So I am going to be a Bear this week.

ETFs; SKF, QID and REW all look good to make a quick buck. Get in on Tuesday out by Friday. Or put in a Stop Limit. Whatever. This is not going to be an up week and it might last a bit longer.

Of course, there are still plenty of great winners to be had. Just time your buy at a lower point during the longer uphill trek:

PBR and RIO - Both great stocks and long-term winners. PBR returned something like 160% over the last two years, benefiting from the price of OPEC oil. RIO is a materials company that is, along with PBR, a Brazilian giant and doing a lot to drive the gains of several ETFs (like ILF and EWZ if I am not mistaken).


I am also recommending keeping a close watch on India ETFs like INP, EPI, MINDX, PIN and IFN as well as India giant, Tata Motors. I see this group making some big gains in the near future. India is populous, cheap, English speaking, Asian, and somewhat stable.