Enzio's Clock

Show Notes: Many of us older folk are getting a little nervous. That is why I preserved my profits some time ago, my Economic Clock Fund having risen 11% in September alone (thus representing an annualized gain of 283%!), and my Theme Fund having shot up 30.7 in one month (thus representing an annualized increase of 32-fold!).

You might also want to look at the hangovers that have followed Chinese Parties and Wall Street tumbles.

1. USA. Buyer beware. I stick with my stagflation view. So how can corporate profits rise if margins thin and turnover falls off The Economic Time™ getting worse? This year, 10,000 jobs on Wall Street go! In particular, avoid banks.
   
2. Singapore. Buy. The Economic Time here is all right. Singapore wants to be a southeast Asian financial hub even more, and will get that spot.
3. Thailand. Avoid. Politics are still fragile and the government's growth policies are not so growth-friendly.
   
4. Japan. Avoid. Ever thought why the Bank of Japan is not raising rates? Surely because it also sees a fragile economy.
   
5. China. Sell right after the forthcoming Party Congress ends. It ends on Saturday, 21st October. Usually there is a market hangover during the week after it has ended, so prepare to eject latest on Monday, 23rd October. Then wait to buy back in at a cheaper price.
6. Currencies. Buy the Australian dollar: 60% of her exports go to China AND Aussie rates have further to rise, so you get a solid yield. Watch the yen: if Wall Street wobbles, the yen will shoot up as carry trades are unwound. Stay away from the US dollar: superpower currencies have to fail, and the Fed at this stage has to cut rates with Bailout Bernanke. Instead, next to the Aussie, buy the Euro and Sterling. What we suggested some time about locals piling OUT of the RMB - just as locals are. Instead, other Asian currencies offer more upside from an fx and thus from a stock market perspective.