In my mind it is. Think about it this way, Wall Street likes to sell their inventory, so if the writing is on the wall, could the mining sector be one place they are starting to accumulate? They buy the beat up sectors at the bottom, sell them on the way up. Real simple.
Add into this mix the real possibility that the dollar will weaken because of all the money supply growth, and you get a bigger move. The only problem is there is no other major currency that can challenge the dollar at this point.
This move will take time, but watch the charts for indications of buying, which you are already doing.
I saw the same thing a few years ago when I got into crude futures around the $10 area, and natgas futures in the $3 area, people thought I was nuts.
BTW, houses where I live are up over 20% in the last 18 months, but I guess that isn't inflationary, unless you are a buyer......?
And a friend of mine just bought a house in Lexington Mass. for $750k, and it is a small one built in 1964....Now that is nuts..
So, does the housing market take a dump, caused by the collapse of all these remortgages in the future, and many become up-side-down and walk away, or does this trend continue? I can't even guess about it anymore, but I see a lot of people living in real nice & new $500k homes that have no furniture or drapes, and a leased Beemer & Lexus in the driveway.
What does it mean to us as market players?? |
