If you earn a good living as a physician, lawyer, accountant, nurse, dentist, pharmacist, teacher, psychologist, teacher counselor, entrepreneur, etc; there is no need to be in these markets. Let all the traders fight with each other to be on the right side of the machine. If you want to live a long, healthy life, it pays to wait till the next secular bull begins in 2016. Then you can buy the major indices and add on dips. Secular bulls have great redeeming qualities: mistakes are usually covered up and wealth is slowly created. Bear markets deceive, destroy and kill. If you get market direction right in a secular bear, you win big; if not, you can lose everything (without a stop).
Wall Street wants you in the market at all times because many (if not most) of the jobs depend on market participation.
There are a few longer term trades that work in a secular bear. The Gold trade has been one on the long side. My gut feel is that Gold is in the process of undergoing a very severe correction. The dollar has turned. I see 85 on the DXY, then 89 and even 100 and perhaps higher.
If one has the stomach, buy UUP on dips. But keep in mind that the ECBs will (at times) defend the Euro by selling some of their gold reserves. Not that it will help much except forestall the inevitable for a while. |
