The Ss of Investing

I just thought I would touch on some Ss of investing. Let's start with S number one:

1. Sucking Wind: In this category we place housing in the U.S., both existing and new. Both are down significantly, both in terms of sales and median price. Foreclosures, under water homes, unemployment and the like will make this category suck wind for the rest of this year and a bit into 2012, at a minimum.
2. Sucking Wind: Effective wages are stagnant or going down and employment is stabilizing but not rebounding to any degree.
3. Sucks: Inflation is showing its ugly colors. Even the false core inflation numbers are on the rise due to commodities being up significantly - and soon due to Japan related issues. When you figure in fuel and food, we are looking at inflation that is getting significant. One reason for economic/political strife in Europe and the Middle East is that regular folks cannot afford food and other basics.
4. Sucking Wind: Portugal is sucking wind and will need assistance sooner than later. It joins the likes of Greece and Ireland and will also join the list of countries that may ultimately give the finger to the EU.
5. Suspect: China has a real estate bubble that it is doing its best to slowly deflate. Even if it succeeds it will slow China's economic growth, which has greatly assisted the global recovery. If it fails, well we have seen what happens when a bubble bursts. By the way, farm real estate in the U.S. is experiencing a bit of a bubble, probably due to food inflation, and it will likely get much larger in the next couple of years.
6. Sucks: Japan has problems that will drag it down for years, even beyond those that have been dragging it down for a couple of decades already. There will be a trickle effect in numerous respects. Short term supply and manufacturing problems are just the beginning.

There is a lot more Ss out there but this will do for now. Yet the market is up the past few days. Those predicting it to continue in this mode I would put into my last S category- Sophists.

Disclosures: None