A Conversation with Grumpy

I first introduced you to my muses last fall. Here is a link to that post:http://lumencapital.blogspot.com/2008/11/my-muses.html

For the most part they all have been lying low. Gracie had a client who lost a lot of money with Madoff and some of the original Boston Boys are now out of jobs. However I did have a long conversation last week with Grumpy. Grumpy is a portfolio manager with over 40 years in the business. He has seen it all and in fact called the 2000 market top but was nine months early. Anyway here is my take away from that call.

1. Thinks Obama Administration blew the stimulus package. Thinks they let Pelosi run all over them.

2. Thinks there is at least one more large Madoff out in the system that has not come public yet.

3. Thinks Obama Administration will try to raise tax rates before 2010 elections.

4. Thinks the greed on Wall Street is much more apparent and at a much higher level than it was 20 years ago.

5. Thinks stocks have discounted much of the negative news out to the end of the year.

6. Is "Wildly Bullish". That's his term. He thinks stocks will be much much higher a year from now. {Remember one thing-Grumpy tends to be six-nine months early in his calls!}