One more new high and stock market is ready for a collapse – higher interest rate, stagflation, oil, food, and lack of corporate pricing power
Sam Adelton
Jun. 20, 2007

The S&P 500 corporate earnings topped out in the summer of last year. As commodity and wage inflation took over, the corporations today faces higher interest rate, stagflation, energy price, war material price, and lack of corporate pricing power. The stagnation in the economy and lack of real well paid jobs are making it very difficult to increase the price of the finished goods. But in the mean time commodity inflation is going through the roof. The oil, grains, softs, meat, metals are all rising in prices very fast.

The stock market is real vulnerable. The bond market is making a counter trend move to diffuse the oversold condition. Soon it will test the high in yields. The yields in the ten-year note can soon rise to 6%. The stock market is showing sufficient resilience – typical; at the end of the bull market.

After a new high around 14100, Dow Jones Industrial will collapse and end the year close to 11,000.

Buy the short end and sell the long end of the Treasury – play the stagflation equation
Alex Roja
It is time to bet on the effects of the stagflation. The economy is stagnating. The commodity and wage inflations are firming.
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Like dot com bubble caused the the tech sector collpase, the Private Equity and hedge Fund bubble will plummet the banking and financial services sector
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Believe it or not it is the right time to refinance your mortgage into one year adjustable linked to a one year Tbill – here is why?
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Before any one can understand much, convert your fixed rate mortgage to a few simple one year adjustable rate mortgage linked to US 1 year Tbill.
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One more new high and stock market is ready for a collapse – higher interest rate, stagflation, oil, food, and lack of corporate pricing power
Sam Adelton
The stock market is real vulnerable. The bond market is making a counter trend move to diffuse the oversold condition. Soon it will test the high in yields. The yields in the ten-year note can soon rise to 6%.
READ MORE>>

How do you pay off your home mortgage in a few years or less? Learn to use hedged futures with options and arbitrageur strategy
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Arbitrageur strategy is a combination of going long on a future contract, write in the money option and buy a protective option as insurance.
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As commodities explode on the upside, the high borrowing cost and cost of raw materials will plummet the stock markets all around the world
Alex Spearman
The higher borrowing cost, higher cost of raw materials and energy, and the lack of pricing power are dragging down the corporate profit. The corporate profit fall 15 to 20% by end of this year.
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