Bernie Turns Bullish On...

For you twits that can only read 140 characters, I'm not tweeting the product that I'm telling Ruth, Jeff's wife Barbara, and the rest of my followers to put their money into.

I've given a lot of thought to what would be the best investing strategy for 2012. I've taken into account macro economic issues, geopolitical and domestic political issues, and I've weighed all of the theoretical events that could impact specific asset classes. I hate to say it, but here's what I've concluded:

1. The Euro is a catastrophe; half of the countries that make up the EU are effectively bankrupt, the other half are on there way to the same place.


2. Despite whatever the latest indicators might suggest, not only is the US economy in the shitter, but its headed into a nosedive. The total lack of leadership's ability (some would say lack of leadership, period), coupled with the failure of our government representatives to want to agree on any type of a plan has convinced me that we're headed into a period where there's only one asset class that will outperform with certainty.

3. Yep..it's clear to me that owning equities is a recipe for disaster. Going long gold, whether by selling out-of-the-money GLD puts, or via buying physical inventory and maybe writing calls against the long position (GLD near term and mid-term 180's) is where you're going to make your money for the next 6-12 months. Probably for the next 2-3 years.

The middle-east situation is a disaster that's not waiting to happen, its happening. The only solution to putting that genie back in that bottle is for us to publicly announce that we're re-introducing the neutron bomb. If those lunatics over there want to continue to wave their nuclear swords, that's fine. If they know that with one press of a neutron button that they'll all disappear, without any of us having to experience the fallout of any fallout, they might think twice about wanting to spend the rest of eternity with 1000 virgins.

Nobody can print money endlessly without being kicked in the head at some point by hyper-inflation. 1+1 eventually always adds up to 2. Its that simple. The politicians that we elected know this, and they know they're not smart enough, or capable enough to deliver any meaningful solutions. That's why they spend all of their time figuring out how to pass bills that line their personal pockets, and that's the reason they run for office now.

BLM