Stamos,

I don't think many buying opportunities out there.   The economy is going to 
get 
crushed this year.  There's only one place to put one's money now, and that 
is in cash.
The manufacturing sector is in dire straits and you will continue to see an 
increase in
plant shutdowns and company layoffs.  The Fed could continue to lower rates 
but there'll
be little capital investment if consumer spending dries up.  I feel we've 
just seen the beginning.  
I think the Dow will be trading under 8000 by the end of April.

Psychologically, the California crisis will add to consumer fear.  The crisis 
is not a short term
problem.  As a result, barring any Federal bailout, you could kiss that 
state's economy goodbye.
Let me ask you a question; if you were paying (1) the highest real estate 
prices in the country, and 
(2) the highest energy prices for the least reliable power, in (3) the midst 
of a hi-tech meltdown, what would
keep you or your company from closing shop and moving to a different state??  
If you own any
CA real estate, sell.  The only way to solve the CA energy crisis is to 
reduce demand or increase supply.
Since CA doesn't want any power plants in its backyard, the supply issue 
likely won't be solved anytime
soon.  So, how do impact demand??  You have to price energy(power/gas) so 
high that
the discretionary user (household, manufacturer, commercial store) conserves 
by closing its plant, cutting
back on the thermastat or running the commercial operation during off-peak 
hours.  California will see
this reduction in demand over time.  If the blackouts subside it's because so 
many businesses have
closed their doors for good or moved to another state.  Without this, the 
blackouts will get much worse.
If the state tries to get into the business of buying and selling electricity 
and gas, I would bet it will go
bankrupt within 2-3 yrs.  Could you imagine the impact on the national 
economy from the bankruptcy 
of the U.S.'s most prosperous state.  Obviously this is only my opinion, but 
I would keep my eyes on
the energy markets - that's where the key to the turnaround lies.  Take Care 
and thanks for the email.


Kevin