- S&P PEs need to get to about 7. Given that they are currently almost 19 today in November 2008, there is a way to go there
- Gold will go back up. The current $740 is a result of the carry trade unwinding – the US dollar is strong right now and gold is cheap briefly. Gold ETF (GLD)
- Gold producers in stable countries will be good bets. AEM
- good tech stocks will be ok, especially solid software companies – Microsoft (MSFT), Sybase (SY), Adobe (ADBE)
- Bonds aren’t a good idea, especially given Bernanke’s determination to avoid the mistakes of the past – deflation and depression, at all costs.