More Liquidations ...

Many more hedge funds are liquidating and most of the rest are restricting redemptions.

From FT: "The combination of the worst year on record for hedge fund returns and the biggest withdrawals on record mean the industry’s assets will shrink 35-45 per cent from June to the end of December, according to analysis by Morgan Stanley."

One famous hedge fund is restructuring in a manner similar to banks: "Paul Tudor Jones, who shot to fame and made a fortune when he predicted the 1987 stock market crash, plans to split toxic assets out of his $10bn flagship hedge fund and has suspended redemptions until the restructuring is complete. "

Hedge funds were NEVER a separate "asset class" as promoted to the rich and the pension funds. They were just a speculative, risky way to manage money and overpaid their managers by colossal sums.

Commodity funds were NEVER a separate "asset class" as they did NOT invest is true assets - namely the underlying oil in the ground, or the actual cows. They were just speculating in futures and derivatives. To repeat, they were just a speculative, risky way to manage money and overpaid their managers by colossal sums.

Yesterday's drop was probably a combination of these redemptions plus the public doing some selling after the recent rally plus more tax loss selling.

And the bear beefer mouthpieces and marionettes keep saying it's different this time, and nothing will ever change and an endless current of bad events will occur forever. To me, they sound like the rah rah crowd of late 1999 and early 2000 in reverse. They just don't recognize how fast the America and Americans react. change and adapt.

Let the bears and doomsters has their fun. When the liquidations are done - an unpredictable point in time - like Don Juan in that great opera, Don Giovanni, the unrepentant bears will be sucked into "l'enfer" as a great new bull market begins.

PS: Today I read the EU is interfering with an injection of capital into a German bank. How can the EU survive this ? with both the French and Germans screaming at its bureaucrats, I think the EU will have to be restructured.

Actions

My tax loss selling is done, saving me big $$$. Later this week I can re-allocate some funds in Krypto Fund. Otherwise, I'm doing research to compile a list of stocks to buy that perhaps can provide big profits on the coming bull market. And I means multiples, not mere percentages.

Word of the Day

"l'enfer" - noun [$ ?] French

"l'enfer" means hell, the infernal regions. the underworld. An erudite reader and poster mentioned it as I asked how to tell someone to go to hell in French: Allez à l'enfer ! Doesn't it sound more polite in French ? And more sophisticated ? By the way, this is pronounced, "Allay a longfehr", roughly.

Sentence: This is not armageddon or l'enfer; World War II was that. Stop the whining. Adapt, improvise and more ahead into the unknown like a true pioneer.