SITUATIONAL INVESTING

Watch what the rich are doing, then do what they do. E.g, right now, our millionaire politicians are pretending to try and extend quality, minimal health care to their wage slaves. The rich have been taught to think that this will make them poorer and less healthy. Hence they, and the health corporations, the party of rich people (republicans) and merchant§ etc, are buying politicians at a furious pace to derail any legislation that may change the status quo (their profits and costs).

We've seen how they made this train wreck when Hillary Clinton tried it years ago. Since then, nothing has changed, and once again the Gluttons Of Privilege and Power (GOPP) will make this train plunge off the cliff.

Now, knowing this, we also know that the threat of Obama's election promise to extend health care to wage slaves caused health care corporations' stocks to fall. If you check, you will find that his election caused the smart, rich money to flee out of pharmaceuticals and health care stocks in anticipation of new gov't legislation making their gravy train less profitable. We wish we could track this money and see where these short-term investors were being stampeded by their financial advisers, but we know that they will be back, soon as it becomes clear that there will be no real changes in profitability of our health care and drug corporations.

So, our strategy should have been to wait for health and drug stocks to fall after Obama's election, then buy in. We wait a few months or a year for all the political posturing and rhetoric to subside. Then the media will pronounce health reform dead, (again). (While all this sneaky, important stuff occurs just beneath the surface, the talking heads are set by their corporate masters to distract us with nonsense like, "Obama causes gun nutz to go on a buying frenzy:") About a month after this pronouncement, depending on which part of the fiscal quarter we're in and if you have a dividend-paying stock, etc, cash out, or dare to stay, since health and drugs are good investments.

The difference between the rich and poor investor is that the rich have the money and higher quality information that enables them to snatch that short term profit and go chase another despite broker costs. The small investor can't buy the thousands of shares that make pennies of price movement into vast profits. Small investors also can't get broker discounts for high volume activity that the rich can. These, and other factors, force small investors to have to risk our money for longer periods. This means we have to be particularly alert, studious and intelligently predictive of political situations governing market conditions. Studying how the rich will react is one of the better ways . to accomplish this goal. The rich time the market. The small investor times the rich.