Value Microcaps Motherboard

[kipp440]

My bearish list.

These are things that I feel will continue to be negative on the market.

There are $50 billion in mortgage resets coming every month for the next few months.

Home prices are falling and will not recover anytime soon (years). Housing activity is a huge part of the economy and is toast. There is no money available for people who have problems with their loans. I could go on and on about housing but the bottom line is housing related stocks are toxic.

The Yen is strengthening and will cause more unwinding of the carry trade. A lot of hyper-leveraged derivatives are going to be unwound, this will cause pressure on ALL asset classes including commodities. Selling causes more selling and so on.

Inflation is headed our way. The dollar is going down and the price of everything that matters is going up. The fact that food and energy are not counted by the FED is pure folly. Most governments are pumping double digit money growth to keep systems liquid, I think last week alone was $400 billion of injections with more on the way.

There will no doubt be many more surprise headlines, "XYZ hedgefund goes under". "Fortune 500 investment bank discloses billions in loses" etc.

Buckle up!

Kipp