Over the last few months I have been hiding under the rock, waiting for the global economic fears to boil over. 2011 was a hard year to be a trader and 2012 hasn't brought in a lot more optimism yet. While the folks I talk to are optimistic about the short term, post tax-loss, period for junior stocks, the overall economic setting is not much changed from 2011.

A good way to describe the current economic environment is to borrow PIMCO's Mohamed El-Erian term of a "stable disequilibrium." In this video the ever popular Kyle Bass breaks down the catalysts that can make this disequilibrium explode. Wheather you are a contrarian type or not, this market remains far too unpredictable to invest in.

For me the game has changed. A swath of good quality stocks has become cheap, while the underfunded junior stocks are perilously close to extinction. Going forward my strategy is to focus on companies that have very near term catalysts and are well funded. Playing the junior sector bullish swings is no longer safe. I'll be writing about my selective picks in shorter posts going forward. For now there is one company that I think is an excellent buy here: Bioasis (BTI.V).