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Grandich: Short U.S. stocks
Wednesday, September 19, 2007
Peter Grandich of the widely read Grandich Publications made a bold call just a few hours ago: Short U.S. stocks - do it now and do it with leverage.
Early this morning came this note:
It's my intention to now look for an entry point and if and when I do, I will send you notice of my decision and what I did. I am not suggesting anyone follow me but just want it to signify my firm entrance into the bearish camp.
About five hours later came this addition:Further to this morning's alert I have subsequently shorted the U.S. Stock Market via the following two Exchange Traded Funds (ETFs):
Of course the qualifying statement that he is "not suggesting anyone follow" him is more of a legal disclaimer than anything else. Any of his regular readers with a healthy appetite for risk and a few bucks to wager get the message loud and clear.
• SDS - $50.34 - this is a bet on the S&P 500 going lower with 2X leverage
• QID - $40.84 - this is a bet on the NASDAQ 100 going lower with a 2X leverage
Peter has been an ardent (and well compensated) supporter of precious metals and related shares in recent years and for that he is given his due - the ranks of gold bulls are still relatively few.
However, the ranks of those betting against Wall Street and it's representatives at the Treasury Department and elsewhere in Washington are even fewer.
With Ben Bernanke now apparently on board, it's hard to imagine that the powers that be will sit idly by as both housing and stocks fall precipitously. There's not much they can really do about housing at this point - it remains to be seen what they can do about stocks.
7 comments:
That's what the Plunge Protection Team is for!
Or what they can do about housing, for that matter. Check out Bonddad's post on the 10 year bond ....
http://bonddad.blogspot.com/index.html
They may postpone recession for a bit, but it's way too late to prevent it.
Oh the fed will try to keep stocks up, but when they want to go down, as the case may soon be, the fed is helpless. How about the bursting of the internet bubble, the fed lowered like crazy and we still went down a ton.
does anyone really think that with Paulson at Treasury and a major election coming up that the stock market will be allowed to crash? do you really think that the New York Fed is just going to sit on their hands as the Dow goes to 13,000, 12,000, 10,000 and lower?
Ackerman: If Fed eases, short the rally
http://news.goldseek.com/RickAckerman/1190127600.php
Maybe not so original by Mr. Grandich
Here is what I don't understand:
If inflation is going to result in an increase in the price of all things denominated in dollars why won't stocks also go up in price along with gold, silver, wheat, etc.
the market is much stronger than the Fed. Look at Japan, they cut rate down to nothing and did that prevent their stock market from tanking and their economy from a recession, hell no!
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