It’s a confusing time out there. You may want to be short stocks and long commodities, and the Euro is looking like a good buy. There are way too many people bearish on the Euro right now, and that often means that a short term rally is coming. But this is only a technical signal. When everyone is negative about something, that is a good time to buy anything.
The only big bull market in the next decade is going to be commodities. Central banks will print money and the equity markets won’t do well, and the federal reserve will just print more money, because that’s all the sense that they have.
It’s not a good idea to own the pound sterling. The British balance of trade continues to be a disaster, and the debt continues to go up drastically. There is no reason to buy the pound sterling at all.
Emerging markets are the best place to go short. You may also want to short technology stocks because they have gone up so far. If some of the emerging markets collapse, then you can certainly buy there.
When there is a disaster like BP experienced, you eventually have to step in and buy at some point because, like everything, this too shall pass.
