Waterford Wedgwood, the maker of classic china and crystal, filed for bankruptcy protection on Monday. This might be interpreted as bad news for other luxury product makers.
Sony announces an annual loss for the first time in 14 years. Is this the end of an era? Or it is just a normal ups and downs of a business cycle and well-managed companies with solid brand names will come back? I would tend to bet on the later, though it may take some time. Not all the big names will make it through to see the next up cycle, so as always, diversification and right sizing of positions is essential.
XME the metals mining ETF is looking very interesting as a long. Call it gut feeling or the "curtain of doom" that is surrounding these deep cyclical stocks. Alcoa just reported poor earnings. On a retest of the 52-week lows (ten points lower than the current 26.90), I may look to take a shot on the long side of XME.
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