In the first half of 2000 when the S&P500 was about 1500, Bob Brinker recommended his subscribers raise 65% cash reserves and wait for instructions on how to deploy these cash reserves in cyclical bear market rallies in what he thought was going to be an 8 to 20 year secular bear market.
In October of 2000 when the QQQQ was about $83, Bob Brinker told his aggressive subscribers :
- We recommend Marketimer subscribers with aggressive objectives invest 30% to 50% of existing CASH RESERVES in QQQ shares in order to exploit this opportunity.
- Also we recommend subscribers with conservative objectives invest 20% to 30% of CASH RESERVES in the QQQ shares in order to take advantage of this opportunity.
Brinker let this "short term trade" turn into a long term "investment" when they fell to $46 in June 2001 and he wrote:
- For subscribers with a position in Nasdaq 100 Index (QQQ) shares, we recommend holding these shares for future recovery.
I have the solution to Brinker's problem. Bob Brinker should tell his audience to send a note to Hank Paulson and ask the US Treasury to take these "troubled assets" called the QQQQ off their hands for 50 cents on the dollar, which would be a bit more than they are worth today!
If the economy recovers, then the QQQQs will go up in value and tax payers will make money!
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