Gold – A False Hope
Let’s see, problems around the world, the media ads make it clear, buy gold, and there is an ETF to take your money. In my opinion this option only works when there are inflationary forces, but the fact is that the stimulus around the world is nothing compared to the amount of leverage that was destroyed around the world in the past two years as the progressive bubbles burst. We are deflating and it really hasn’t started yet. Watch the dollar, yes it has been under pressure this summer, but in my opinion it is making a major bottom.
The summer stock market rally is over, if one could glean the data a lot of it was probably due to speculation by financial and hedge fund entities who had plenty of cash that was supposed to be lent to small businesses, but wasn’t. September 9th still sits out there as a day we expect the wheels to start coming off the speculation train.