CALIFORNIA STATE GENERAL OBLIGATION BONDS: Brinker said: "I like general obligations of states........ That is what I use myself....I have a really hard time believing that the Federal Government would stand by idly and allow state general obligations to go into default. I really don't think they would. And so for that reason, even if they have fiscal problems of their own as many do right now, I think state general obligations are a place that a municipal investor in a high bracket can invest......I think if you own a general obligation of the State of California, and if the State of California continues to have fiscal problems, I would be very surprised if Washington D.C. would stand idly by and allow California to go into bankruptcy.....Bankruptcy has dramatic implications for the citizens of the State California, and I use California because it's the lowest rated of the general obligation state bonds right now because of their fiscal problems......In California, after education expenses are paid, the second thing that gets paid is interest on the California General Obligation Bonds."
Caller Angelo: "I have not subscribed to your newsletter, but did you ever make a call to get out of the market or are you remain fully invested."
Bob Brinker said: "We've remained in the market. I did not make a call to get out of the market. And I discussed this in detail in our program in October when the market broke. But no, I did not make a call to get out of the market. I have stayed with the market. I am bullish on the market at this time. And I think that people who are in the market right now will be very glad they are."
[Honeybee EC: Bob Brinker is (to put it kindly) "mistaken" about discussing "in detail" his decision to "not make a call to get out of the market" in October 2008. All one has to do to verify that I am telling the truth is check the 2008 archives of this blog and scroll to the October Summaries. Matter of fact, Brinker has NEVER discussed "in detail" his decision to not get out of this mega-bear market. He has admitted it when forced to, but never discussed it.
And (to put it kindly) how "silly" for him to say the "market broke" in October 2008. Anyone who can read a chart knows that it "broke" in January 2008. See Kirk's chart in the Saturday Summary below.]
Today a caller asked Brinker about buying into the stock market. Brinker said that he was "on record" as recommending to "buy on weakness," and he added that he had written that advice in his April Marketimer. That is correct. In March, he was looking for a new bear market bottom. Yesterday, Brinker inferred that this had been his unchanging advice for quite some time when he said: "Well our recommendation to our subscribers has been to be a buyer on weakness. We have regarded the market as a buy on weakness. That is our view and that's certainly a view that has not changed in recent weeks."
SWINE FLU OUTBREAK: Brinker said that he wouldn't rule out the possibility of this swine flu outbreak being a terrorist attack. And he pointed out the one of the officials that met Obama in Mexico is now dead from it!
In edit Monday morning. Jeffchristie reports -- read more here [LINK]The remainder of the Sunday program covered old ground such as, credit default swaps, repeal of Glass Steagall, the uptick rule, calculating the implied inflation (Brinker says it's 1 1/2% now), naked shorting, and the CDARS program [LINK].
Brinker did not have any guest-speaker Sunday.
I took this picture in Juneau, Alaska, when on a cruise:
In edit: Please click on "older posts" below to read my Summary of Saturday Moneytalk.