Welcome new reader!

Financial news I consider important, with my opinion, which is worth as much as you paid for it.
Please click HERE to read a synopsis of my view of the financial situation.

Sunday, May 23, 2010

Welcome New Reader

This is my second attempt at consolidating a short and sweet intro to this blog.

This blog entry will be updated as needed, to revise my view of the US economy and the world economy. You will see text colored (blue). Click on these words to see a blog post or other material to provide detail of the basis of my view.

Welcome to my blog, my name is Mike Murphy, a Computer Consultant/Programmer turned arm-chair financial blogger, with help from
other bloggers and friends (John Chinnock). The goal of this blog is to serve two purposes, one is to help me continually focus and articulate current thoughts of the Financial Market & US economy for my own trading. A second is to hopefully help those who know me to safeguard their savings from buy and hold mentality in this historic economic problems the US faces.
Short take

The US Stock market and the US economy will see substantial pressure from a massive deflationary collapse that will not end until the US government enforces honest accounting and loses by US banks are realized. Current target for S&P500 and DJIA for a "bottom" is 550/5000 respectively
or lower either in USD cash or living standard degradation equivalents. For example, if cost of living doubles, in real terms a S&P 500 at 1,100 is at 550. The US economy will be in a recession/depression that will span 10-17 years from the initial downturn in Dec 2007. (updated from 5-10 based on US avoiding taking action 1-2011)

During the economic turmoil storage of wealth in stocks, bonds, cash, real estate, or natural resources (gold) all involve risk.

Therefore I strongly advise against keeping money in general stock funds, better off in natural resource investments and some US treasury notes (cash).
There will come a time where US cash will have turmoil (devaluation). However this is likely to happen after 2010, but it could be triggered at any moment due to US government actions. Please read the next section, my verbose view, to better support this view.

Top 3 blog entries worth reading

Click here to watch video series by Chris Martenson, explaining the economic forces the world faces.
The Secret of Oz, video on how gold is NOT The answer to monetary problems
ZeitGeist - Watch this in a dark room peeking out from under a blanket, with gold bars and a gun handy.

Additional Blog posts worth reading

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