CurrencyShares British Pound Ster. Trst (AMEX:FXB)

LeoFender (33.23) Submitted: 8/2/2007 1:34:07 PM : Start Price: $199.90 FXB Score: +17.18

The world's supply of currency as a whole can only increase at the global level of inflation. The dollar has been beat up and taken through the mud though the dollar could struggle for years to come, I believe the contrarian play is the most prudent. With global securities and small caps outperforming large caps by a record level the last 6-7 years. I am finding most of the values in stocks that are part of the S&P. With real estate crashing, inflation looming it's head, and all-star emerging markets fund managers saying that it's getting harder to find REAL values, the S&P 500 may be the BEST way to play the upcoming bear market. *scratches head*... oddly enough. I believe that the S&P will outperform TIPS (a synthetic inflation fighter, vs. the natural inflation fighter the stock market).
For the last 8 years, investors have been working SOOOO hard to outperform 75% of the market (the S&P 500). This has been easy to do over the last 8 years simply by NOT investing in the S&P 500. Times are changing and as fewer and fewer people leave the large cap sandbox, the better opportunity there is for the biggest sandbox in the park. My prediction at the start of last year has already started coming true (the S&P 500 will be much more difficult to beat moving forward). I don't believe this is out of steam either. With a long term pick, the dollar could easily regain ground over the long run, in which case the relative value of other securities will naturally drop, making the relative value of the S&P 500 a massive winner. Fool on!!!