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Talk Is Cheap; Stocks Aren't


In unprecedentedly volatile market, minimizing risk is essential.

Welcome to the jungle
We got fun 'n' games
We got everything you want
Honey we know the names
We are the people that can find
Whatever you may need
If you got the money honey
We got your disease

"Welcome to the Jungle," Guns N Roses

Last December, I wrote a piece about what I expected for the financial markets in 2008. I usually have a fairly strong opinion, but I really didn't know what to say about the future. I still believe that using historical precedent as a road-map for these unprecedented times is a big mistake.

Instead, I firmly believe that what follows an unprecedented buildup of debt plus the creation of esoteric financial instruments plus poor lending habits would lead to an unwinding of heretofore unimaginable proportions - and historians and investors will look back at the unwinding of the most dangerous financial experiment of all time and use this as a guide in the future.

Welcome to the financial jungle, a place where we have only a vague idea of what can happen. It seems we have now entered a period where survival is key, and we can only hope to emerge with most of our capital intact. Only thereafter can we pounce.

I feel for those who have lost capital while reaching for opportunity, but I continue to believe that losing opportunity is better than losing capital - and I've been positioning client assets accordingly.

Despite the fact that tens of trillions of dollars of financial assets have evaporated this year, I continue to search the jungle for ways to profit.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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