Value Microcaps Motherboard

[kipp440]

Wade - Don Coxe and markets

The reason Coxe is changing his mind is because things are happening that have never happened in history. Bonds and global equities are going up, both at the same time, WHILE nearly all major economic powers that count are RAISING interest rates. The inverted yield curve has been a predictor of a recession something like 93% of the time. Coxe says there is too much liquidity (money) in the world markets and this is causing assets to be bid up without runaway inflation.

The other thing that is going on is that the gowth of the Chindian economies are making the U.S. economy less of a factor. It used to be if we got a cold, the world got the flu, not so any more.

As far as timing the market and worrying about getting in and out next week and so on, I have no opinion about that. What is working best for me is trying to find companies that are increasing production of commodities quarter over quarter and then sticking with them. LionOre is a great example of my kind of company. Look at this pdf and think about what will happen if Coxe is right, if we have a couple of quarters where the GDP is near zero, and then the economy takes off again. You will have more chances to add to commodity stocks.

http://www.lionore.com/pdfs/uploads/presentations/6707_2007%20Guidance%20Presentation%20-%20Dec%206%...

I am betting that the global economies are going to continue to expand even if the U.S. pulls back. I am willing to stick it out to see if I am right and get rewarded for finding and investing in companies like LionOre.

Good Luck!

Kipp