Dave's market musings.
For what it's worth, here are my thoughts. Just my opinion as a market survivor (don't know if that counts for anything these days).
Anyway, someone has been sending me Richard Russell's daily letter, and in them he has remained consistently bearish throughout this market "recovery" from March. He thinks it's a bear market bounce, and the Dow close below 8300 today was his signal that the primary trend (bearish) is about to reassert itself. The rally in bonds today was the confirmation that deflation lies ahead.
I think he's probably right. Last year, gold and gold stocks got sucked down into the pit, and the two trillion or so that Obama and the boys have spent are about to go down the deflation crapper. One day, we're going to get inflation due to collapsing paper currencies, but not soon, it appears.
Bottom line: Take a long term view of something you own, or get out. For any other day or swing trades we make, "Let's be careful out there" should be our mantra.
Maybe the situation will change and hard assets will start to move. Then again, there's a good probability that the nastiness ain't over.
CD |
