We opened our portfolio on December 1, 2008 as a way to test the market transition to the Obama Administration. The portfolio was characterized in an earlier blog. We have been tracking it since then and our interest is in seeing how this cross economy package does. Metals, telephone, food, technology, chemicals, retail. A mix of dividend producing stocks in what would be a solid space. All have significant capital needs and all can be predictive of the economy in general.
What do we see a month later, well it is getting worse by the minute. After the Geithner talk today we see a continuing collapse.As we have argued before the economy needs a plan, any plan. The Obama Mantra egging on the HR 1 mass of giveaways, we need it now, like the old "I want my MTV!", seems to be lacking in his own backyard. The banks must be purged, the market must clear, and the lingering uncertainty will just cause further harm. In many ways Geithner appears as some High School Senior in the Debate Team, holding himself erect but lacking any experience and exuding abject terror and not confidence. We need Chuck Yaeger for Treasury and not some fresh pilot trainee.
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