Latest data from the housing market shows that the misery is set to continue for a while yet. But Christian Hill says investors can still make money by shorting two real estate specific ETFs (IYR, VNQ). A more speculative play is the UltraShort Real Estate ProShares (NYSE:SRS) inverse ETF.
The battle between inflation and deflation is the most important thing for investors to watch right now, says Adam Lass. Fears of falling prices are rife in Washington today. But the inflation cycle will come around again soon, especially with all the new money being pumped into the economy by the Fed. Adam says that’s why investors should buy the PowerShares DB US Dollar Index Bearish ETF (NYSE:UDN).
Whether you agree with them or not, the bailout programs will keep on coming. Keith Fitz-Gerald looks at the key impact these will have on the dollar, commodities and global stocks. He says we could be in line for a market rebound by mid-2009, and suggests six ways to prepare your portfolio now.
Keith Fitz-Gerald gives us a simple-yet-effective portfolio strategy for the current market environment. He says two essential components of any portfolio are dividind-paying stocks and specialized inverse etf funds.
Governments and central banks around the world are engaged in a fierce battle with asset price deflation. As Byon King says, “It’s like Napoleon’s retreat from Moscow. There’s no relief from the suffering.”
Eric Roseman says the Fed will eventually triumph over deflation with by a massive expansion of credit.
In the meantime, he recommends a defensive portfolio weighting: 50% cash, 10% gold, and 20% in reverse ETFs, such as Short Dow30 ProShares (AMEX:DOG) or Short S&P500 ProShares (AMEX:SH).
Yesterday, traders sent the Dow down a record 777 points. Today, the mood is more upbeat. The Dow is up 363 points. Traders clearly still want to believe the government can still help sort out Wall Street’s problems.
Justice Litle isn’t fully sold on the bailout. But he says it isn’t an option to let Mr. Market sort himself out this time: the US is too leveraged to follow Andrew Mellon’s “liquidationist” approach during the Great Depression.
That’s why the feds will do whatever it takes to prop up the system… and run the dollar into the ground. And that’s why you should buy gold now.
Banks still aren’t lending, says Eric Roseman in The Sovereign Society.
The LIBOR lending rate between banks is 81 basis points above the Federal Fund’s target rate of 2%.
This means even prime borrowers are struggling to raise capital, and it signals that the credit crisis has a ways to run yet.
Further tightening of credit also spells trouble for stocks. Eric advises investors to stay parked in cash, alternative investments and reverse ETFs…