5.03.2006

The dumbest guys in the room

CNBC just reported that the dopes at Merrill Lynch just changed their asset allocation, raising the equity weight and reducing bonds.

A bit late for that, isn't it! People pay for this advice? Sell bonds AFTER they've tanked, and buy stocks AFTER they've rallied? We've been telling people to sell bonds and buy stocks and gold for months:

Lies, Damned Lies and Statistics

Chinese Taking Over

Jeremy Siegel on Stocks and Bonds

Gold on a Rampage

UPDATE: Holy smokes! It's worse than I thought! Merrill has been recommending that their clients heavily overweight bonds and heavily underweight stocks! In a near-zero real interest rate environment! Merrill clients would have gotten crushed if they took this advice.

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Thoughts on a #TradeWarTuesday

1) We're going to need to decouple from the evil Chinese regime. This started as a crazy Trump position but is now bipartisan consensus....