Doug's Stock Picks

So it begins.

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My thoughts on the current market are very negative. I believe the Real Estate and Banking problems are possibly only just getting started. I'm not sure of the exact number but I think these 2 sectors make up close to 25% of the S&P500 and that is a couple of big anchors hanging around the markets neck. The reason I say possibly is that with the fed's help along with other initiatives there is a chance that the issues may be worked out. Currently I feel that real estate has at least 2 years before it works through the current wave of foreclosures and deprecation.
The biggest problems that have to be worked out before the market improves in my opinion is the bond insures. (How the heck these guys can insure 100's of billions of dollars with very little capital to back them up I have no idea). (If this is resolved either by government bailout or other means I will probably switch out of my current positions and go long).
There are numerous smaller issues that also have to be worked out before this is all said and done. No one seems to be looking ahead at all the lawsuits that are going to start flying. The rating agencies (S&P, Moody's) and the way they do business needs to be overhauled and there will be more write down's by the banks.

On the economy in general I'm fearful of the US going into a major recession, triggered by housing deprecation and the squeeze on middle class America. With over 3 million middle class jobs moved overseas I feel that this will set the recession home so to speak.

The Strategy Lab positions that I invest in are also positions that I have taken in my own account from time to time.

Stay nimble.
Good Luck investing.
BullHunter