What’s Next ?
With the turn in the dollar last week the markets have gone into a stalemate stage. Commodities and gold have rolled over significantly. Stocks are holding their own based on continuing stop gap measures around the world and it has to be admitted by me that the min-bubble has in the short-term helped the stock market over the past 4 months. This is a time where if you have just watched the market, as it would appear most have or I would have received more disgruntled comments, it would seem that valuations are overbought and there is little reason to own stocks.
On the other hand the 2010 election is approaching and the party in power, as usual, will have no end to the games to keep the market at these levels. So while my aggressive portfolio remains double short I am resigned to view this moment as an interlude in the macro picture between now and 2017. There will no doubt be 10-12 percent declines at times but the big decline is probably some time distant.