Are The Stars Aligning?

We have waited for over one year to survive the financial storm that has swept through Wall Street...destroying over leveraged capital along its way with many companies showing four quarterly consecutive losses measured in the hundreds of billions.

Like in the Summer of 2002 if you had survived the multi trillion dollar decline of 2000 and 2001 you had some pretty good buys....for the next five years....maybe like now!

1) "CAF" is now trading at an unusual premium to NAV...and we'll bet everyone is under weighted anything related to Asia...ex Japan. There are no China Bulls left....just as that country is ramping back up it's capital markets.
2) Have the big caps stopped going down in the face of so much negativism?? BA, BAC, GE, AIG, C, MOS....energy looks better than ever...nat gas never cheaper...how can the nation's largest refiner VLO be valued at $18b (imagine its replacement cost)....all the home builders have put in lows..if financials don't make a new low here..then the broad market should hold.

Have the sellers exhausted themselves with month end and fiscal year end approaching for funds in September/ October??

All these non cash charges...will be interesting when they are marketed the other way..no one talks about this..

With Russia shutting down (in just one month they have lost investors for a generation) now other world equivalent assets should be revalued higher as money flows away from Russia elsewhere.

We think a McCain Presidency is not in this market, nor a much colder than normal winter.

Biden? Less than half of Americans polled have ever heard of him....so two life long politicians/ senators do not equal a President.

With the market down 15% year-to-date and cash yielding 2.5%....we think the public will start to chase this market only after it moves 10% or more higher...it will be an active September through December to "save" the year.

Danny Boy seen here is licking his chops.