We continue to watch the dollar / gold relationship for signs of dollar strength and the coming decline in gold. Probably the easiest way to do that is to watch the ratio between the gold ETF GLD, and the dollar…Continue Reading →
The elephant in the room for both the economy and the market is deficit reduction and whether Congress can pass a balanced approach that incorporates both reduced expenditures and elimination of tax breaks. David Brooks comments are right on: http://www.nytimes.com/2011/07/05/opinion/05brooks.html
The market is seeminly locked in a no-man’s land where the economic soft spot is offset by the belief that if it doesn’t get better, Bernanke will step to the plate. My belief remains that it will take S&P 1185 to…Continue Reading →
The dollar continues to work higher compared to all other markets including gold. This is a result of the important support levels that held recently and the fact that all the safe havens like emerging markets and tech stocks are…Continue Reading →
In what was probably his best speech ever, Ben laid it on the line yesterday. He is frustrated with fighting the idiotic House Republicans and the greedy bankers. He know that a much more ambitious jobs program was needed in…Continue Reading →
It might be easier to ignore the markets rather than put in a lot of thought at the moment. This is due to the fact that Washington Budget resolution is the big piece on the table now. The runup in…Continue Reading →
As the market awaits the crucial Fed meeting on Tuesday and Wednesday it contiunues to believe that Ben will not remove the punch bowl, the speculative party is just too good. The best weekend read is David Stockmans piece :…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 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 →