Where To Invest Now?

I have been talking a lot of bad thing about stock market, federal reserve and financial stocks. I been telling you to start selling your position when market goes into the buying frenzy.

So you might ask me where to trade? Where to invest now? How to protect our capital and start making money?

Well first of all get out of stock market as it is going nowhere. wait for a few days for the market to shoot up higher then dump it.

Long the commodities, not the commodities stock. Two reasons why buy commodities instead of commodity stocks:

1) According to jim rogers, you will make 4 times higher when you buy commodity than commodity stock when commodity price goes up.

2) Commodity stock is in the stock market. When other sector of the stock market crash, commodity sector maybe affected too.

My choice: Precious metal. eg. gold, silver, platinum. Energies eg. crude oil. Grains eg wheat, corn, soybean, palm oil.

Besides Commodity, You should short the dollar against all major currency the world.

My choice: long Euro/USD, Aus/USD, NZD/USD, CHF/USD (long all those currencies against dollar). Two days ago I long Euro/Dollar at 1.4146 at now i already earn 265 pips!

I think dollar will retest their previous low against all those currencies.

Also, start reading the quality books from expert. I am on Peter Schiff's Crash Proof and Martin J Pring's Technical Analysis Explained.

FYI, the reason why some expert can predict the market correctly is because they look into the fundamental of economic and not just look at stock market. We all know stock market is irrational. Example, today the world stock market surge like crazy for two reasons: bail out plan and short selling rules. Those two so-called strategies will never make a worthless and rubbish company healthy again yet people still chase all the financial stock like there are no tomorrow.

Remember this: the stock price of a company never ever change the quality of a company. eventually those people who spend their hard earned money buying the share of financial companies will realize they actually buying a worthless piece of paper.

Take care!