Inequality Remedy, A Declining Stock Market

We all read the numbers, 10 % of the population owns 80 % of the stock market.  So if the stock market declines a lot, more than 50 %, then a good portion of the problem will be behind us.  The only problem for the 90 % is for those that have their money in pension funds whose managers will get caught also.

If you look at the the Macro places to put your money, two places are in Bull trends in order of bullishness; the dollar, and T-Bonds.  Everything else is in a Bear trend in order of bearishness; Commodities, Oil, Stocks, and Gold.

Even when one looks at sectors of the stock market all sectors are in Bear Macro trends.

The overview commodity chart we keep, which combines copper, lumber, and gold, is close to taking out the 2009 lows. While many market pro’s have been trying to call the bottom on commodities for the last six months, I would say that we have yet to see the clean-out stage that would precede a bottom.  Deflation is just getting started and will move into paper assets as liquidity issues move to the head of the table.

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