Bearish Bias on U.S., Bullish on Taiwan

Moguldom Capital Markets Research Team

We had a great month in March by shorting rallies in the DOW, shorting USD, and we were able to catch Bear Stearns on the short side before the collapse. We retain a bearish bias on U.S. equities and the U.S. dollar. Our research team believes we are only in the second inning of the biggest credit crisis in the history of the world. We expect some players looking for a bottom and trying to be cute by “buying when there is blood in the streets” are going to see their blood in the streets later this year. You have to know when to buy when there is blood in the streets and now is not the time.

The election of a pro-economic reform President in Taiwan sets up a new way to play potent China growth in the future. There is certainly no bubble in Taiwan and we believe there is room for the Taiwan stocks to run up. We are long the Ishares EWT.

Most of us don’t have the discipline to stay focused on a single goal for five, ten, or twenty years, giving up everything to bring it off, but that’s what’s necessary to become an Olympic champion, a world class surgeon, or a Kirov ballerina. Even then, of course, it may be all in vain. You may make a single mistake that wipes out all the work. It may ruin the sweet, lovable self you were at seventeen. That old adage is true: You can do anything in life, you just can’t do everything. That’s what Bacon meant when said a wife and children were hostages to fortune. If you put them first, you probably won’t run the three-and-a-half-minute-mile, make your first $10 million, write the great American novel, or go around the world on a motorcycle. Such goals take complete dedication.Jim Rogers