WITH THE BOND BUBBLE IN THE NEWS...AND LIQUIDITY FLOODING THE SYSTEM...FROM BOTH HEDGE FUND FORCED SELLING ...AND FED MONEY PRINTING...!
THERE COULD BE A "NEW BUBBLE" IN THE DEFENSIVE STOCKS... CLEARLY THE MONEY RUNNERS CAN'T JUSTIFY THEIR FEES JUST SITTING IN CASH...
BUT THE ECONOMIC NUMBERS FOR 2009 WILL BE DISMAL...ESPECIALLY FOR MULTI-NATIONAL BLUE CHIPS HURT BY THE SO CALLED "STRONG DOLLAR"...
NEVERMIND HOWEVER:
THE "GROUP THINK" IN THE HEDGE FUND COMMUNITY MAY SAY:
RUSH MASSIVELY INTO "DEFENSIVE" STOCKS...THE CONSUMER STAPLES AND HEALTH CARE ETC...
I WOULD VENTURE THAT FEW MONEY RUNNERS HAVE LOST THEIR JOBS BECAUSE THEY WERE CAUGHT SITTING ON HUGE AMOUNTS OF COKE, P&G, CLOROX, OR 3M...
THERE COULD BE A PANIC BUYING OF COMPANIES WITH REAL BUSINESS MODELS THAT HAVE HELD UP WELL IN THE RECENT SELL OFF...
THESE SO CALLED DEFENSIVE STOCKS COULD BENEFIT FROM THE RUSH OUT OF THE BOND BUBBLE AND OUT OF CASH BEFORE 2009...
THE BLUEST OF THE BLUE CHIPS COULD SOAR...AS HEDGE FUNDS DESPERATELY SEEK TO DUMP CASH BEFORE THE END OF THE YEAR... CALL IT DEPRESSION STYLE "WINDOW DRESSING."
OF COURSE THIS "NEW BUBBLE" WILL BE A PERFECT TIME FOR REGULAR INVESTORS TO DUMP THEIR BLUE CHIPS TO THE PANIC-DRIVEN HEDGIES...WHO ARE DESPERATELY SEEKING THEIR NEXT BIG BUBBLE.
