Dow is high again. So are the wall street annalists. This is a reminder of the spring 2007 when both Dow and jobless claims went all time high. The fact is, US economy is not doing all that well. Individual stocks, some of them are doing very well indeed.
People consistently forget that DOW is only a few big companies. When Dow is high, only means rich are getting richer. In fact, the rich has so little confidence in economy that they put their money in big DOW companies. Not a good sign.
In the tradition of "buy low sell high", FatCat is betting her money in the real estate and sub prime mortgage. it takes a while to locate the real value but the value to price ratio makes the sub prime mortgage the most attractive investment right now. Exactly, which part of "buy low sell high" don't you understand? and yes, that means sell the DOW companies and buy the sub prime mortgage and real estate foreclosures.
FatCat also puts her money in the Chinese stocks. it has benefit of two fold. First, Chinese companies are growing at 12% compare to the single digits growth in the US and Europe. Second, the US dollar has dipped against all major currencies. It is expected the dollar to recover against Euro but it will continue to dip against Yuan.
