Well another day has passed and another downgrade, does this surprise anyone, not me. I am sorry to sound so pessimistic all the time but it is inevitable we are in fore a rude awakening. If you think the last ride down was bad LOOK OUT. While siting on the back porch having a cold one with a friend of mine in Feb 2006 we discussed the troubles in the market even as it was going up. We were watching Bubble Vision (CNBC) as they talked about the housing prices going up and the market accelerating. We cold see even in our area of SW FLORIDA that these prices were unsustainable. We sold our investment homes for a few bucks profit and got the hell out of DODGE. We went short the market in March 2007 a little early but the right move in hindsight. At the time we could not go short the market in our 401k'S -as we can now- and just watched the ride down. Even back in March 2009 I still did not feel the market hit bottom so I missed much of the ride up. I still did 6-8 % and then eventually 16% but not the 90% ride I could have made. Oh well, live and learn. Again, in hindsight now that I understand the value of QE1,2 , and 3,4,5 that has been tried and realize the commodity boom was all because of easy money (AGAIN). The big boy's understand it , us retail people at the time, did not. Smart money made money up and down and then got bailed out by the Government-Surprise-again.
You can keep throwing good money to bad, hey I did early on in my investing-thinking I knew what was right and wrong, now I'm a little smarter. Just look at the charts and you will see what I'm talking about. The Japanese tried it and Roosevelt tried it in 1931 only to see it backfire a year later and into another recession. Please see the charts from DSHORT. COM here is one. Kimble charting does a great job of explaining how the pattern always comes back. My guess, minus QE6, is the market will have an inflection moint around March this year and a major one around Feb-April 2013. when the big one hits you have around 2 years for big gains. If you can play the market to the downside get ready your chance is coming.

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