The Bear devours Goldilocks

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What I plan to do when the market really corrects. Is it going to happen this week, likely not. And maybe we temporarily reach new highs in the Dow, S&P, and NASDAQ, but it won't last long. This is the scenario I'm watching for: Inflation spikes; the sub-prime fungus, as D. Kass calls it, consumes Alt-A lenders and triggers credit-tightening; an LBO sours due to credit shock; hedge funds abandon their positive, short-busting bias and melt 5-10% from the market in a hurry, followed by mutual fund withdrawls + retail panic selling. I hope none of the above occurs, but when it does, here's how I play my hand.

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