1. USD long term trend down; if USD cannot rebound substantially from around 80 level, we might see panicking
in the financial markets.
2. Cal's economy is Real Estate based economy for the past 4 years. In fact, Cal's RE bubble is only behind UK and
Australia according to Morgan Stanley. Can it be pumped
another 4 years? Sure if there's no panick selling in USD.
Do you want to bet on it? That's a personal choice.
Obviously the two movie stars wouldn't.
3. Cal's high tech industry has not seen light yet
from Wall Street's perspective. Should high tech industry trades at the value of most cyclical business, as argued by
many value investors, the pressure would force
more layoffs.
