Good Technical Analysis

This guy is a very good technical analyst. His findings are consistent with my thesis that we are in a depression and point to another big fall in the DOW before we make a base and move
higher.

http://www.cnbc.com/id/28985914

When this happens, it will finally be time to buy stocks again. It will be very tough, because everyone will feel like the world is ending and will be thinking you are crazy to buy stocks. However, I don't believe index investing will be wise at this point. The best strategy will be to construct a diversified portfolio of "best of breed" individual stocks. We are in a Darwinian situation here where only the strong are going to survive this.

My plan is to save up as much cash as possible and start building my "best of breed" diversified portfolio after the next big fall. No lattes, no trips to Hawaii, no fancy dinners out! How do you find "best of breed" stocks? They need to have LOTS of cash on their balance sheet, little debt, good name recognition, and ideally they will not have experienced massive growth during the credit bubble expansion era we are just exiting.

This troubling time is scary, but it will present massive opportunities. Just get yourself ready to take advantage of them when they present themselves.