Port Of Tauranga Ord Shs T.POT

Global Economy

[bertander]

In my opinion, the US is close to an economic collapse if they don't get their trillion dollar debt under control. Their S&P credit rating is really in jeopardy and nobody seems to think a collapse is possible. They are almost at $15 trillion and rising in debt. The Federal Chairman recently warned about a crisis but no one has any concrete solutions. The following is also of interest:

-    a failing European Union
-    inflation and uncontrolled growth in China
-    slow recovery for Japan

These are things we need to be concerned about, including:

-    steady high oil prices
-    rising food prices
-    ongoing realestate problems in US
-    political back lashes and unrest (harder to obviously predict)
-    a 2 year bull market behind us

The Regan and Bush adminstrations have totally destroyed any control of corporate USA. The record earnings are the result of:

-    low interest debt payments
-    not enough taxation (which is all over the news)
-    slow repayment of government bailouts
-    grossly underestimated analysis reports (Why are analysis so out to lunch on earnings? - that's their full time job)

I hate to be all doom and gloom, but how can you possibly continue to buy equities that are so closely tied to global financial health. It may be temporary but it may also be a slow and painful decline. Consider parking some cash in HSD on TSX and benefit from a falling S&P 500 index this summer.

Sell in May and go away!