Equification

All of Asia is paying down debt and raising equity/cash. The largest most exciting companies in India and China are putting serious equity onto their books...this is unprecedented. The bears complain about valuations...the bulls know there is no better way to grow a company or country than with cash and critical mass...2.5 billion people now have both...by the way that is 8 times more people than in the USA.

Key points observed in today's markets:

1) The elimination of the uptick rule on short selling...reason justified is all the ETFs now distorting this market...bad news when the tide turns. We now have a herd mentality in the ETFs...its all anyone talks about now...
2) Individual stock selection within a group is now better than ETFs because you can over weight it and enjoy the buying masses "buying blindly.
3) The steepening yield curve will force cash to work...the bears say they get 5% on their cash. The media focuses on long term rates...the real story is declining short term money and the trillions that will start to chase the stock market higher.
4) The professional investors will soon figure out the Private equity pricing formula with the Blackstone Group prospectus. The traditional money managers will see better more profitable growth in the years ahead..they are now undervalued as the money will begin to shift back to the proper investing styles.
5) Major governments are now taking on more investment risk. The Chinese are no longer buying the US Government bonds. The Indians are allowing higher ownerhip limits in the banking sector and Temasek is upping their holdings in IBN. Major positives here...
6) A wealthy Google employee is quoted as saying "economically, you are volunteering to be here," with the stock now through $500 per share...many early employees are leaving the company for a different life.
7) The IRS says the the top 1% of tax payers paid 36.9% of all taxes paid in 2004. The top 5% paid 57.1%. How can the Democrats run (and Win) on higher taxes? We think the public is smarter than that!
8) 30% of all the natural gas customers in Minnesota are still delinquent on the heating bills from last winter!

Jack Welch's approach to business, "What ever you do, manage it well." The biggest global stocks with the strongest balance sheets are breaking out to the upside all over the capital markets right now....this has been the biggest lagging group for years...now the smart money is beginning to go to work.

Danny Boy seen here on his first boat ride. He likes to try new adventures.