All in again!!!

I have been sitting on the sidelines in mainly cash since April, but this past week where the Dow and TXS dropped 7-8% presented huge opportunity to buy - I smelt fear in the market this week and I jumped in head first. Could be a little pre-mature but there isn't much other investment alternative out there with governments printing cash and driving interest rates to near 0%.

With so much liquidity, inflation is inevitable if a recovery occurs - catch 22, as long as the economy stays lathergic, inflation stays tame, if the economy starts creating jobs, watch out for inflation.

The US Government needs to fix one fundamental flaw with their policies. The trickle down effect or thought process of enriching the rich and corporations with the hope that there will be a trickle down effect and job creation is completely false as seen in the last decade. More tax cuts, more corporate profits = more layoffs for the employees, more outsourcing and richer bonuses for the executives. There has been hardly a trickle.

If this does not change, the economy will become one of the rich (folks with assets, stocks and high paying jobs) and one of service - servicing the rich. Manufacturing where the wealth of the nation is created will be entirely in Asia and the gap between rich and poor will widen. This does not bode well for the long term economic growth for the US.

So, we have to play the game. Be part of the folks with real assets and stocks of corporations that make money every day. I loaded up on Barrick gold for the gold exposure, Suncor and Canadian oil sands for oil exposure, RIM for Tech, and the 3 banks that I like, Royal, Scotia and TD Bank.

Locked and loaded and let it ride.... hopefully the bottom is near and we continue on our path of asset inflation.

To fix the economic woes of north america and europe, we need to create jobs and stop corporations from outsourcing through creative fiscal and taxation policies. Most people want to work - that's what used to be the American dream. We cannot have corporations making record profits then announcing layoffs the day after reporting.