3/17/2006

03-18-06 - 5

03-18-06

The PS3 is starting to look like a big disaster. Actually, as soon as I saw the processor specs I should've known it was a disaster. The only question I have is how much that will affect Sony's bottom line. I think a short position on Sony could be a good way to go.

In other investment news, I'm starting to feel more and more like the U.S. is headed for the crapper in the next 10 years, so I'm thinking of getting my money out of dollars. I like to do that by buying foreign stock. The obvious places to invest are India and China, perhaps there are some other good options.

BTW, why do I think the US is headed for disaster? 1) massive foreign accounts defecit, somewhat propped up by just printing more dollars, 2) massive government budget deficit, 3) continued loss of real jobs & real earning rate in productivity sectors (eg. if you take finance and real estate and natural resources out of the equation and just look at the "skill" sector of our economy, it looks really bad), partially due to the growth of foreign countries' skill base and outsourcing, 4) large amount of personal debt and leveraging, which may destroy consumer spending power if - 5) the housing bubble may pop or even just slow, which will crush consumer leveraging, which is a major force in our economy.

Basically the US economy is currently propped up by - massive oil profits (and other natural resource wealth), which is not only temporary but also destabilizing, massive consumer leveraging in the form of credit cards & home loans, and massive government deficits.

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