THE FAT PITCH

If we had sold at the top several months ago we would be paying 30% in taxes (or more). So if we were traders, which we are not, we would have to have called the top and bottom (buying back into the markets today) and be even on the day.

The market is offering what Warren Buffet calls a FAT PITCH. The consensus is bearish and the "global melt down is just the beginning.". The shorts will be covering, the wealthy cash rich corporations will be buying back stock and cash heavy mutual funds will be putting money to work.

Stocks are attractive if your looking at the current long term secular trends...not financials and technology, but food, agriculture, hydrocarbons, infrastructure and electricity....as well as emerging markets, China, India and Brazil

We also like selling high put premium on MOS, BHP, EWZ, ECA, BTU, LFC, FXI, CHA and going long GM, COMV, AMSC.

Reasons why this bear market will be less severe than forecast:

1) Emerging markets
2) Reasonable valuations
3) Tons of cash on the sidelines
4) Improving liquidity helped by the Fed.

Danny Boy seen here at the Pond Hockey Championships