I tend to agree Sum. However, some thoughts from Barry Ritholtz were interesting. Although the we have a very awful housing, auto and financial sector, he says that the rest of the sectors are lean and sitting on a lot of cash. If this is the case, than this will help to turn the corner much better.

I have followed alot of doom and gloom and Coswil's posts and see where they get their line of thinking. I believe the answer is in the middle. As an investor, I think it is important to realize that their is HUGE amounts of money everywhere sitting on the side lines waiting for a signal that the bottom is here. This huge pool of money will be deployed at some point because they are earning 0% interest in the US securities for the foreseeable future. When inflation starts to rear it's head (and it will), these people will actually be losing money holding treasuries and will be looking for solid investments. IMO, I believe keeping a good percentage in cash is very important right now (actually, I would hold on to stocks a few more days and sell on the last day of trading of the year) and sit on some money afterwards as we are bound to get exagerated pessimisim and when we see huge market crashes, then deploy that cash. I told a friend of mine 2 weeks ago to buy NOT at 48 cents. He said it will drop further and I will buy it at 42 or so. Well, it never dropped that far and he bought more at 75cents...human nature is such an awful thing in the stock markets!!!

In any case, here is the blog from Barry, I highly recommend the read:

http://online.barrons.com/article/SB...

Cheers,

Glorieux