Dax Desai.com » DBO http://www.daxdesai.com High Return Investing with Dax Mon, 14 Dec 2009 21:08:33 +0000 http://wordpress.org/?v=2.9 en hourly 1 Blue Collar Economic Indicators http://www.daxdesai.com/2008/11/03/blue-collar-economic-indicators/ http://www.daxdesai.com/2008/11/03/blue-collar-economic-indicators/#comments Tue, 04 Nov 2008 03:04:49 +0000 Dax Desai http://www.daxdesai.com/?p=935 SHARETHIS.addEntry({ title: "Blue Collar Economic Indicators", url: "http://www.daxdesai.com/2008/11/03/blue-collar-economic-indicators/" });]]> I just came across these websites.  I’d consider some of them to be blue-collar economic indicators:

A few observations of mine:
  • More people in the office brown-bagging lunch
  • More small tv’s on display in the stores
  • I know Christmas is far, but the stores seem very quiet
  • Job listings seem very sparse
Personally I think:
  • Mass layoffs are right around the corner.
  • We’re going to be pushing 8% unemployment, probably around 7.5% by mid ‘09.
  • Auto industry is just the start.  We’ll see a cycle of industrial companies on the brink of bankruptcy.
My opinion is that we must to a degree let the market sort itself out.  If it is a Saudi company foolishly investing in GM so be it.  If it is a merger of 2 failing giants so be it.  If it is a bankruptcy of an industry so be it.  On a global scale we must adhere to comparative advantage.  America’s best companies that are the world’s best are so because of a fundamental Darwinian premise – Survival of the Fittest.
And of course I can’t blog without putting in a few stock picks.  Despite the drop in oil recently, I’m going long in oil.  In typical fair I am going leveraged going long via DBO.

Be sure to vote tomorrow!

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