fewl10 (35.63)

Don't Open New Accounts

July 18, 2010 – Comments (1)

With a whopping rating of 11.70, I'm not expecting ANYONE to actually read this post.  However, let me just say that I started this CAPS account in 2007 with several long positions, got hooked on ultra-short/short ETFs, suffered through the 2008/2009 collapse, etc all with this account.

I refuse to open a new CAPS account.  My real life portfolio has done much better (I've only lost about 20,000 in total, which is less than most people with my current level of assets). 

This first post of mine is to encourage people to be loyal to their account.  Don't open a new one just because you have a low score. 

Predictions for the next six months:

GOLD: will hold up will in price, although a sub-1000 price is possible, it isn't likely.  If that occurs, buy it hand over fist is my advice.

DOW 7,000:  I think this is quite likely given the bleak employment scenario, coupled with the fact that our president and his administration is composed of mostly academics and Keynsians.  Keynes isn't a bad philosophy, but it's just never applied correctly-- the stimulus is never withdrawn.  When the DOW hits 7,000, start averaging in.

After a drop in the DOW, the USD will have bubbled like it did in 2009.  Be sure to rid yourself of as much USD as possible at that point-- there may not be another spike in it and we will have rapidly rising interest rates as the currency is devalued to pay down government and private debts and possibly prop up additional fraud.