Fred says…

• S&P PEs need to get to about 7. Given that they are currently almost 19 today in November 2008, there is a way to go there
  http://tal.marketgauge.com/dvMGPro/charts/charts.asp?chart=PERATI
• Gold will go back up. The current $740 is a result of the carry trade unwinding - the US dollar is strong right now and gold is cheap briefly. Gold ETF (GLD)
• Gold producers in stable countries will be good bets. AEM
• good tech stocks will be ok, especially solid software companies - Microsoft (MSFT), Sybase (SY), Adobe (ADBE)
• Bonds aren’t a good idea, especially given Bernanke’s determination to avoid the mistakes of the past - deflation and depression, at all costs.