Time to Visit the Medicine Man
I will be out west for the next week visiting a friend, a Medicine man. Perhaps a little fresh insight will be good. I see the markets going into a climactic period over the next 45 days from which a new paradigm will grow. Regardless of what is being touted on the cable news a fresh outlook on wealth is evolving and with it a new direction for the markets. Change is already here, the difficult regulation and cleanup period is largely behind us and positive elements will evolve.
We continue to look at Gold as a hedge, a 10 percent short gold position is our hedge against being short the stock market as it completes its clean-out base. Once this base is in place an over-crowded long gold market (many looking for $ 1500 an ounce in the next 45 days) will be an unravelling scene for history. Another area to watch is the bond market. This is probably the last rally for bonds in this cycle and by mid-October interest rates will have bottomed out.