Don Luskin - "Buy With Both Hands" - July 2007

It's sort of funny (perhaps unless you're long) to take a gander at the ticker scrolling on the above video from last year. Here are a few notables:

Dow at 13,531

Fannie Mae at 65.33

Wachovia at 51.25

Citigroup 51.39

As I type this,

The Dow is 11,100.

FNM is $9.93 per share.

WB is trading $11.82.

And a share of C only costs $16.36!

On that video, Jim Awad asserted:

The gradually declining dollar, that actually is in our interest...it's the way that we solve our imbalances...

Well, Jim, if a declining dollar is so great, when is that *good news* going to show up in stock prices? When is it going to show up in food or energy prices? In home prices? In employment numbers? In anything?

Clearly, Peter Schiff was prescient in his analysis - in fact he was almost perfectly clairvoyant. If you have the time, go read all his opinions on his website. I really wish I had discovered and heeded his advice five years ago!

The market did take a dump last August so in the short run Don "Buy with both hands" Luskin gave some pitiful advice. In his defense, it rallied strongly from that to new highs in October. I don't watch him closely enough to know whether he ever said to bail out of stocks at those higher prices. But my sense is that he's become sort of a *perma-bull* - and an ornery one at that!