Investing Under the Austerity Umbrella
Our theme since this summer has been: the number one factor to build your strategy around is world wide austerity. Simply it means that gold and commodities are not where you want to be. Stocks will tread sideways and follow a price distribution pattern, no bear markets, no bull markets for now.
Gold as a currency has played well for a while but Europe is putting together some band-aids and will no doubt be selling some gold when the agreements are in place. The US economy is feeling a little better and the push will be to test the summer stock market highs over the next six months.
At the moment I expect the S&P to trade in the 1225 to 1275 range this week.