BO KNOWS BEST

We have the reversal now in place. Everyone who bought bonds in the past nine months have lost material money.....they will lose even more....especially in municipal bonds.

Stocks will now materially outperform bonds from here....as the tide shifts away from owning government debt.

And yes, stocks remain the hated asset class for 2011. The stock market is making an impressive rotation back into financials....just as investors did last month into oil and materials...the least expensive group in the market.

Ethanol now accounts for more than 40% of domestic corn use....all at a loss to US tax payers!

Leadership in China says today they will grow above 9% for the rest of the decade.

Domestic use of natural gas in China has grown an average of 16.3% per year for the past ten years.

Natural Gas here in America is now rumored to be set up for export..this will alter the current supply imbalance and result in higher prices for hydrocarbons in general.

China imported 151 million short tons of coal in 2009. That's 240% more than the 2008 figure and 423% more than the 2005 figure. China is the world's biggest producer AND importer of coal.

Our themes for 2011: 1) Peak Government 2) China's growth 3) Peak Oil

BO (The White House Dog) seen here (in the lower left corner of the picture) at the White House, clearly thinks he knows best this week!