Across My Desk: Look Beyond DJIA

Only paying attention to the Dow Jones Industrial Average could be misleading.

David Tice, manager of the Prudent Bear Fund, was interviewed in an October Forbes.com piece. Here's what he had to say to those exuberant over the DJIA topping the 1200 mark:

"Tice points to the nation's $70 billion deficit and falling real estate values. "I believe the credit expansion will end in tears," Tice says, noting that many homeowners now have inflated mortgages. And those with adjustable-rate mortgages who are now being hit with rising interest rates face the potential for foreclosures.

If that happens, Tice says, the nation will fall into a deep and prolonged recession.

Sectors he is currently bearish on include technology stocks. Tice says the NASDAQ's recent gains are unjustified and that the earnings growth of technology companies is likely to decline.

Bottom line: Diversify and don't forget the old Wall Street adage that bulls and bears make money but pigs don't.