This Economic System Cannot Last

The economic system which has evolved in the world especially in the US but not just the US cannot be sustained because it is built on staggering amounts of debt. The United States is now the largest debtor nation not just in the world but in the history of the world. No country has ever gotten so deep in debt and the debt goes higher and higher every day.

Nobody's doing anything about it except some worrying like me or worry knowing it cannot go on and not only is it based on lots of debt but to sustain the debt or to maintain it they now print a lot of money. The central bank in America gets out its printing presses, prints a lot of money and uses that to finance the debt going forward so this cannot last forever. I'm afraid it's not gonna last too much longer because we're getting to the end of the road.

The Reason Why I Prefer Japanese and Chinese Shares

It looks like there's a blowout in place you know and it often happens in markets every 10, 20, 30 years we have them we may be having one now. But I would buy Japan if this happened (tax cut), Japanese markets are down 50 percent from their all-time, high Chinese stocks are down 40 percent and I'd rather buy low instead of buying high. 

Related trading instruments: SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Russell 2000 Index ETF (IWM)

U.S. Stock Market: One Year From Now, Stocks Will Be Lower

I suspect we will hit new more new highs which will surprise everybody including me but next year at this time stocks will be down.

Related trading instruments: SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Futures

Bitcoin: The Chart Looks Like A Bubble

If you just showed me charts and showed me what's happened in that market over the past year or two and didn't tell me what it was I would say, "this looks like every bubble I've ever read about".

I don't own any Bitcoin, I've never bought or sold so I'm not a good one to ask but it sure looks like the picture of every bubble I've seen.

Stock Market: There's a Blowout in Place

It looks like there's a blowout in place you know and it often happens in markets every 10, 20, 30 years we have them we may be having one now. But I would buy Japan if this happened (tax cut), Japanese markets are down 50 percent from their all-time, high Chinese stocks are down 40 percent and I'd rather buy low instead of buying high.

The Reason Why I'm Investing in Russia

In my experience I have learned that if you find something that's hated, that has a lot of value and things are getting better you probably will do fine and that's why I'm investing in Russia. (Market Vector Russia ETF Trust (RSX), iShares MSCI Emerging Markets Index ETF (EEM))

Investing: Agriculture Will Do Well In The Next Bear Market

I'm very optimistic about Agriculture's been a disaster for 35 years and it's changing in my view. It's changing so if you're worried about the world and that we are going to have a serious bear market you should think about agriculture because agriculture will probably do well, that is a place that will probably decouple in the next bear market.

Commodities: Coal, Steel and Agriculture

I'm a director of a coal company so we obviously should worry about Chinese coal. I do own commodities yes, but Steel is not high on my list because it's there's no real active futures market but some commodities I'm very optimistic about. Agriculture's been a disaster for 35 years it's changing in my view. 

A Hot Sector In China

If you're cleaning up pollution in China you don't care if the West disappears as you're too busy going to work every day and you're making too much money but the companies that have debt and deal with the West are gonna have problems the next time around.

Buying Opportunities In Japan, China and Taiwan

I bought stocks this week in China, Japan, Taiwan so I see opportunities on the long side in markets. That doesn't mean I'm right. A bear market may start today but I see opportunities. But if you're worried about that you need to know how to sell short. Great fortunes can be made in a bear market selling short.

The Worst Bear Market In A Lifetime

What I have said was that we will have a bear market again some day.  Now, Janet Yellen says we wwill not, she says everything is okay now and there won't be any more economic problems. I happen to disagree with her and I know we will have bear markets again.

What I said was the next one we have when it comes is going to be the worst in my lifetime, the reason for that being in 2008 we had a problem of too much debt,  the next time around the debt is so so so much higher, so the next time we have a bear market is gonna be the worst in my lifetime.

The Use Of Stop Losses

Some of the smartest people I know use stop losses, whatever number they use. I have never used stop losses but I frequently wish I had. In fact the more I read the more I think "maybe I should start using stop losses", I don't have anything to lose much by doing a stop loss and it might help me a lot.