The message that has come in clear since the start of QE2 is to buy precious metals, stocks, and commodities. Never mind that the problems we as a country face are structural and part of a deleveraging process that will…Continue Reading →
As all of you readers know, the QE2 experiment is to me an experiment that will not end up well. This weeks letter by John Mauldin features an “Outside the Box” column by Dr John Hussman titled “Charles Plosser and…Continue Reading →
Most markets are honoring the longterm resistance levels that will define the top of the trading range for 2011 (bottom and support for the dollar and T-Bonds). Gold and silver remain the hold outs. It will take a close under 1440…Continue Reading →
As a bit of solid initiative is being generated on both sides of the aisle in Washington, the leading edge of the speculative money is starting to leave the game. Janet Yellen has it half right on why not to…Continue Reading →
Today’s Presidential speech on the budget will more than likely be more of the same in that it will not be a real solution that can work. The Republican’s have already outlined an unworkable program and now the President will…Continue Reading →
The Bernanke generated inflation scare, QE2 based, is probably over. Any owner of commodities would do themselves a favor to have unloaded their position. Stocks are just another commodity in this scenario. Deflation is still the long cycles direction. Just…Continue Reading →
The dollar has finally dropped into the optimum buy range, could go a little lower, but probably not much. It will rally out of this area because the rest of the world will relatively be in worse shape than the…Continue Reading →
The budget battle will now start to overwhelm QE talk. A real Washington and countrywide conversation will involve putting everything on the table and end up sharing the pain. They are not even in the ball park at this point. Cutting entitlements,…Continue Reading →
That is what the market believes even though all the pundits say otherwise. QE2 showed that Bernanke believes the only way to to save the economy is through inflation. Ironically there are only a few people in Washington who will…Continue Reading →
Since September 1, 2010 the market has operated on the premise that it knows a secret and nothing can blunt the QE2 push. You are seeing the endgame now. Yesterdays gold action was typical, push up, struggle, drop. Other markets…Continue Reading →