Wow!

Bear Stearns is bought out at $2.
For myself, I bought it on Thursday and sold it for a 20% loss.

Because I believed the bottoming process is at hand.

But this was a trade and I have noticed that the real money is picking the trend and riding it out which is what we are doing in this co.

US Global, Grow, which we own is in the financial services sector and was just mentioned in USA Today having funds that trolloped the markets in the past 5 years by 433%

Tomorrow, it will be hammered and we are going to get a buy of a lifetime in this stock.

It is only a matter of time when their clientele keeps growing because it is very hard picking gold stocks as well as energy stocks that aren’t barrack gold or Exxon.

This is a long term hold. And we aren’t selling until Frank Holmes comes out with a book like Peter Lynch did in the 80s.

http://www.usfunds.com/main_intro.asp

One that I’m exploring is ABITIBI BOWATER. It is the largest manufacturer of paper in North America and has cash flow problems as Bear Stearns, but has real and physical assets that could be sold for greater than their debt. At the moment, buying the stock and the put is still cheaper than the assets at hand. So this may be a dog, but if I was Asian or European with currencies twice the value of ours, I would say hey half off. And the debt is half off as well.

The market as of 9:17PM Sunday looks very ugly.

Gold is at 1022 an ounce and Im sure no one can remember it this high because it never was!

Now Monday morning will have everyone scaring the bejeebers of anyone who has held on this long. So possibly the bear market will be over soon which doesn’t mean things will bounce back but accumulate steam as fear subsides. The dollar is down and is not rallying but people still like the US. If that wasn’t the case our T bills and bonds wouldn’t yield so little.

Commercial real estate in particular REIT and foreign markets are completely overvalued to the US markets so as I accumulate stock we are going to own etfs that short markets in order to profit short term from the volatility and hopefully pay for our long term picks.

Currently we own EEV and SRS.

There are generational cycles where there is great wealth distributions and this is one of them. Going from technology to financially led wealth to people with hard assets.