Will the bubbles pop all together?

The M&A party is rocking. And spewing lots of junk debt, with a good chance of a hangover in a few years from now. The same is expected sometime in the early future with real estate, after the home real estate party of the past few years. The Dow has been at it as well, and its a fair bet that can end anytime. The dollar is declining, and that could continue as US asset markets weaken. The consumer is still spending, but retailers are having to work harder with discounts, and the dollar decline does'nt help the cost of imports. So the market is a little nervous on the consumer front as well. Sounds like things have built up all together, and they could pop all together. If it happens that way, it will not be pretty. But I hope it plays out differently...

Diversification for investors

"Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing." - Buffett

"Diversification is for people who aren't sure about what they're doing," - billionaire investor Kirk Kerkorian (has told his aides). He sizes up deals by homing in on two or three key "gut points."

I just came across these quotes in the past week. Beautiful! Its what I've been preaching (and practising) the past year that I've been actively playing the stock market. And made myself some returns that would make these guys real glad (atleast in % terms! ;)) Ah well, great minds...

alternative energy

"...we are in the beginning stages of major changes to agricultural markets caused by rapidly expanding production of biofuels" - Credit Suisse, 11/3/06.

...the ethanol industry's continuing expansion and its ravenous appetite for corn are helping ignite the biggest bull market for grain since the 1970s - WSJ, 11/4/06