Buy Cars

In Venezuela and Brazil the people there buy cars as fast as they can to hedge against inflation. It is an asset they can use and sell for more as their currency falls in value. Here in America we have (under Chairman of WDC, LLC's command) closed manufacturing plants and laid off employees of Government Motors to work through inventory. We hear prices are now stabilizing and going higher as there is less product now out in the market. Also investors are starting to figure out what is the timing of the coming inflation "play", many times this can be very emotional and turn on a dime.....the perception of inflation. We continue to believe the US dollar goes lower and interest rates go higher...a positive for real estate and equity. Hard assets are clearly under accumulation by smart investors.

It also feels like we are moving back the 1970's, we expect the Chairman of WDC, LLC next winter in his cardigan sweater to tell us now to turn our thermostats down to conserve energy just like the peanut farmer did next to his fireplace in the office.

Companies that earn more than 50% of their revenue abroad have seen their shares rise +15.7% year to date versus +1.5% for those with all domestic earnings according to a research house. Creditor nations and companies continue to out perform debtor nations and companies....a long term trend.

A famous economist said last week....California's government is bankrupt not it's people. The best thing that could happen to that state is a reorganization of it's balance sheet and spending.

Blogger sentiment is currently measured as 44% neutral, 31% bearish and only 25% bullish says a well known technician. Remember many trillions of cash is sitting on the sidelines losing a great deal of money right now!

Corn prices have declined...our crop this year has never looked better including other vegetables. Water and temperature are very positive ingredients for farmers right now.

Danny Boy seen here wishing everyone a happy Fourth of July.