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Timing America's Comeback

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( TheStreet) -- You can't believe anything you hear in August anymore. Hedge funds are intent on manufacturing an August low through the manipulation of stock prices and the indirect manipulation of the media. Europe knows it, which is why they banned short selling for the remainder of the month. We know it, which is why we sold the portfolio to 80% cash at the beginning of the month.

As volatility increases in the modern age, so does the importance of managing the calendar. Hedge funds expose any weakness they can find and the low volume/vacation month of August has become a favorite. Anyone who thinks otherwise does so at their own peril.

In the most absurd development of the month, S&P President Deven Sharma announced that he is stepping down, only a few short weeks after his kamikaze mission to downgrade the credit rating of the United States of America.

The downgrade hasn't worked out very well for S&P or obviously for Sharma. His move to downgrade the United States of America below France, Canada, Germany, Norway, Sweden and Switzerland was borderline insane. It highlights an error in judgment that economists have been making since the study of macroeconomics became entirely focused on the small (GDP) and forgot about the big (total assets) back in the 1930's.

No attention is paid to the capital base, or balance sheet, that makes it possible to produce the goods and services measured as GDP. Any significant analysis of the United States of America that only focuses on spending or budget deficits, without accounting for the balance sheet, is certain to be misguided. How quickly could the United States of America get rid of its entire $14.6 trillion debt that everyone is so worried about? Let's take a look at a few of our assets:

1. With the explosion of wireless demand, the United States through the FCC is reportedly increasing the wireless spectrum by 300 MHz in the next five years and 500 MHz in the next 10 years. The value of the 300MHz is reportedly $120 billion . With demand expected to increase by 35x over the next 10 years it is feasible to assume the U.S. wireless spectrum alone could surpass a $1 trillion valuation.

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