Bigger is Better Theme Will Dominate in 2015

He is right. Let’s stop blaming Wall St. and bankers for the overblown financial problem and instead put the blame where it is really belongs: reckless borrowers, regulation, and the doom and gloom media that tried to fan the flames of crisis to get Obama elected.

Blame the left for trying to spread lies about the economy being weak to justify wealth redistribution under the mistaken assumption that it will help boost the allegedly sluggish economy (note: The US economy is doing just fine, despite record wealth inequality).

We’re not in a financial meltdown right now and the fixed income market clearly doesn’t think we’ll be in one anytime soon given the yields on long-term treasuries. Ditto in the FX markets. Ditto in equities.

The libs have been predicting high/hyper inflation for the past five years and during each passing quarter they become more and more zealous in clinging their fundamentally flawed understanding of macroeconomics. The U.S. is an autonomous currency issuer with a zero chance of defaulting due to insolvency (there’s a very outside chance of a technical default due to political infighting) not only because we can print money, but borrowers have more faith in the American economy, government and institutions of innovation than that of any other country. Our debt in nominal terms may be high but we have the world’s reserve currency, the most productive economy (that actually happens to be growing, unlike the eurozone), and trillions of dollars of assets (think infrastructure and federal land).

You know you’re a lib when you go around on message boards telling people IQ is not important compared to EQ, that the stock market is a bubble, that the US economy is weak, that Bay Area home pries are a bubble, that wealth inequality is a big deal, or that the consumer is maxed out. The same for blaming bankers, blaming tech CEOs for collusion, whining about congress being dysfunctional, whining about too much debt, and so on. Some of these people claim to be conservatives or of the ‘right’, but when you probe deeper, they are just libs who have infiltrated the anti-Bush , anti-neocon faction of the Republican party. Others are libs who are confused – who identify as conservative when they really aren’t. The conservative party is the party of wealth creation, homeland security, and policy that benefits the best and the brightest. When you attack Wall St., rentier capitalism, the fed, IQ, the Ivy League and Web 2.0, you are attacking the best and the brightest who comprise those institutions, and that by extension makes you a liberal. The GOP is about raising society to its fullest potential, and to accomplish this sometimes means having to enact policy many find unpopular (bank bailouts, tax cuts for the rich, QE), or ignoring things like wealth inequity.

As part of the bigger is better theme, a great call by me to go long Ali Baba when it was at $90 (now at 117 on its way to 130 and beyond). Just another example of how I’m right about pretty much everything because I have my thumb on the pulse on the market and economy. Like a chess master, I can see many moves ahead and act before the masses do.

The dow is going to 20,000 soon and the S&P going to 2500, but fewer and fewer stocks and sectors will participate in the gains. If you aren’t careful and find yourself in the wrong stocks and sectors, you will miss out, even if you are long.

Be long: Healthcare (XLV), Biotech (PJP), Transports (AAL, IYT) Financials (GS, WFC, MA, V), Large cap globalist tech (QQQ, GOOG, AAPL, FB, BABA), Consumer Staples (VDC)

Weak sectors (avoid): Energy (XLE), Materials (XLB), Small Caps (IWM), Europe (VGK), Emerging Markets (EEM), Miners (GDX), Gold (GLD)

Some portfolio ideas: Long 30% SPY or 20% SPY and 10% PJP and long 70% IEF

Long 60% SPY, short 12.5% of each: IWM,XLB,VGK/EEM,XLE

Long 60% SPY, short 40% VGK

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