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US loses AAA - first time in 70 years !

Finally the inevitable happened on Friday 8/5 when S&P lowered USA credit rating from AAA to AA+. This is almost history (which no one should be proud of) since it is happening first time in 70 years. Last year when folks elected bunch of tea-party members, no one imagined that tea-party would make history in wrong way.  This is what we get when bunch of politicians have single minded agenda just to make president's life miserable and not letting him govern the country. They don't care of state of people or for that matter country !

Markets just have guessed that this is what something going to happen and hence they gave an indication on Thursday and early Friday when DOW almost touched 11000 - 10% correction in less than two weeks. I am sure all of us lost quite a bit of money (I did lose significant amounts). This was worst week since first week of March 2009. That says it all. We still need to watch out reaction to S&P decision of lowering credit rating next week. However last week's volatile markets may provide some good opportunities - remember whoever dared to invest in those dreadful days of Mar 2009 made over 100-200%. But one needs to have dry-powder and courage to take plunge.

Here are my potential 50% recommendations: FAS ($16), ERX ($46) and TNA ($46) and DRN ($46). All of these are extreme bets on markets recovery and could easily go up or down by 50%. So be very careful before investing in these. These are not far faint of heart !

/Shyam

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