I think we will be in a bear market until 2010. There are a few...

I think we will be in a bear market until 2010. There are a few time bombs on the way. Nothing like we have seen before.

The US mortgage rates for retail customers will be reset next year at a higher rate. This will lead to even more foreclosures and a few more banks will go down. The cycle is as follows (I presume):

1) Industrial Nations go into recession
2) Commodities go downn (Demand destruction?)
3) Commodity based Nations like Australia go to deep and even worse recession

There are quite a few diseases in the western capitalist system as we know it. Whilst curing a disease another one emenates.

HOWEVER, there are enough smart people in the world to come up with solutions and all will be fine again.

Why will all be fine?
Humans needs to survive...from stone age to now we have always found solutions.

What will trigger The recovery process?
A final shock to the body is blown

What is the shock?
That interest rates, leveraging etc are the root cause of all problems.

When will we realize we need to change ?

Very soon, post 2010.

Therefore, we need to start scaling into great companies in great sectors with minimum interest/hedging etc.

Note: Cant pick the bottom so start buying now for next 2 years. Offload in 2018.

This is my strategy anyway.

URM is just one small stock amongst others we can scale into. Let it go to 1c. Get 100 times more stock there with same outlay. An infinitesimal move above 1c will make a killing.

Stay away from Heavily leveraged instruments, margin lending, derivatives, cfds etc and nothing can happen to us. Most financial instruments are designed to transfer wealth from us to the Market Makers, Manipulators etc.

Yes be careful, but don't miss out on the inevitable survival of the true Free Market Capitalism that smart people will produce without choice.