How Now Do We Prepare for the Next Bubble Burst

On the next radio program, Kevin Duffy and Michael Oliver return.

Two main questions for this week’s show are the following: first, given pathological economic policies in place, what is the most likely outcome a “crackup boom” or a bursting of asset bubbles? Secondly and of even greater importance, if bursting of asset bubbles is the most likely outcome, how should investors position themselves? Should gold be abandoned? What are the risks of short selling? Is this an opportunity to make money or just a good time not to lose money?

We will ask Kevin for his thoughts on how to position ourselves if, as your host believes, the most likely outcome is an asset deflation triggered by massive global debt default. Hopefully we will also obtain the latest technical views on the debt, equity and gold markets from Michael Oliver as well.

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Kevin Duffy got into the investing business in 1985 as an analyst and also as a strategist. He started and cofounded a money management firm in 1988 after the ’87 crash. Kevin Duffy and Bill Laggner are the brains behind the Bearing Fund. In case you have not heard of the Bearing Fund, it is a hedge fund that gained over 100% in 2008 when most 401k’s were turned into 201k accounts. Bill met Kevin in the ’90s and both cut their investing teeth on the short side of the tech bubble markets that imploded in 2000, after which they formed Bearing Asset Management.

J. Michael Oliver entered the financial services industry in 1975 on the Futures side, joining E.F. Hutton’s International Commodity Division, NYC. He studied under David Johnson, head of Hutton’s Commodity Division and Chairman of the COMEX.

In the 1980’s Oliver began to develop his own momentum-based method of technical analysis. In 1987 Oliver, along with his futures client accounts (Oliver had trading POA) technically anticipated and captured the Crash. Oliver began to realize that his emergent momentum-structural-based tools should be further developed into a full analytic methodology.

In 1992 he was asked by the Financial VP and head of Wachovia Bank’s Trust Department to provide soft dollar research to Wachovia. Within a year Oliver shifted from brokerage to full-time technical research. MSA has provided its proprietary technical research services to financial and asset management clients continually since 1992. Oliver is the author of The New Libertarianism: Anarcho-Capitalism.