I bought some Nuance and that’s about it…

I bought some Nuance and that’s about it into the close.  Is the week already over?!    It’s important for investors and traders to acknowledge the broader macro-economic cycle and how it can affect your portfolio. And more to the point, with government helping fund most of the biggest corporations and the financial sector that funds those biggest corporations, it’s very important for investors to gauge what our domestic fiscal and monetary policies from the Republican/Democrat Regime that has taken us to this unprecedented economic cycle.   I spend 80 hours a week, every week, trying to create balanced and hedged portfolio of stocks, ETFs and options.  Here are some of my ideas, tactics and strategies that I’m using to set up the Revolution Investing model portfolio:

Buys:

• Tech stocks that will benefit from the fastest growing marketplace in the history of the planet — smartphone/tablet/app revolution.   My favorite names in this sector have been and remain, Apple (iPhone, iPad, iOS, etc), Google (Android), Riverbed (enterprise application infrastructure and services), and Corning (the touch screen glass on your tablet/smartphone/etc).
• Cheapie old school tech stocks.  My favorite names here are Cisco (ex-cash, it’s at less than 7x next year’s earnings), Microsoft (2.5% yield and ex cash, it’s at less than 8x next year’s earnings), and Celestica (ex cash, less than 7x next year’s earnings).
• Food, shelter, clothing and their suppliers. My favorite play here is the DBA, which represents a basket of commodities that people consume, like Cotton, sugar and corn.

Shorts/Sells:

• The TBTF banks, all of which would be insolvent and illiquid if not for the trillions in ongoing outright welfare they get from the Republican/Democrat Regime in power and the companies that service them.   My favorite plays here are XLF, an exchange-traded fund (ETF) that represents a bunch of financial, mortgage servicers that gets me short the TBTF, bankster stocks that are somehow still receiving “emergency” welfare and interest rate loans from the taxpayer and are now going to start literally transferring some of that taxpayer largesse that they are receiving to the people who supposedly “risked” their capital as shareholders, and Lender Processing Services,which can be thought of as a ratings agency, in terms of its culpability. Its business model of rapid execution of foreclosure proceedings enabled the banks to cause a crisis on such a large scale. And the scope of their potential liability far exceeds that of the ratings agencies. Without the ZIRP (zero interest rate policy) profits that the banks enjoy, LPS is exposed as the scapegoat for what ever comes next. In the light of day, a mutli-trillion dollar hangover, can feel pretty bad. Our mission at this point is to try to profit on the pain of their comeuppance.
• Alternative energy stocks, all of which would be out of business tomorrow if not for the billions of dollars of welfare/tax credits and subsidies that they get from the Republican/Democrat Regime in power. No reason a blue collar worker making $45,000 a year should have to subsidize people spending $45,000 a pop on solar panels for their houses, and the biggest reason there are so many permits required to solarize your house is largely because the rich house owner needs to make sure they’re qualifying for all the welfare they’re supposed to get for going solar.   These subsidies are wearing thin in today’s broke governments.  Short the companies depending on alternative energy welfare.
• Corporate bonds. Corporations are currently borrowing trillions of dollars at below market interest rates because of 0% interest rates from the Fed for the banks that lend to the corporations, along with QE1 through QE 237 or whatever we’re on now and all the other subsidies that Republican/Democrat Regime throws towards big corporations.  Broke governments can’t keep taxing the little guy, small businesses and companies that have saved lots of cash and don’t have debt to enable irresponsible corporations to save billions annually with access to socialized loans from the government.

Bet on growth markets and cheap stocks that don’t have debt.   Bet against any asset that our broke government is subsidizing.  See you next week!