Market Update: Gold, Stock, Bonds Oil & US Dollar

Posted by Peter Grandich - Grandich.com

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Precious Metals –  I awoke this morning to hear my wife tell me gold was over $1,500 and silver $44+. How do I feel about this? You can count on one or two hands at the most, the number of people who have remained credibly bullish from almost the lows of both metals. Yours truly will do a rare thing by patting his own back. It was not easy and it seemed those of us who did had to always defend our position all the way up versus those who were constantly wrong having to explain how they keep getting it wrong.

In a world where “what have you done for me lately” reigns, I will enjoy my hard fought gains in gold and silver through the holiday and speak more in-depth about gold and silver after. I do believe we’re getting close to a period that may see a significant correction/consolidation and hope to discuss this and more after the celebration of the Resurrection.

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silver

U.S. Stock Market – I said on Monday not to be surprised to see the market recover from the S & P downgrade news and as usual, the “Don’t Worry, Be Happy” crowd on Wall Street (and TOUT-TV) didn’t disappoint. Numerous emailers wrote urging me to finally remove my chicken feathers and short the market as the downgrade news had to be the death of the rally.

I remain in my chicken coop despite knowing this financial-heroin-driven market is going to end badly. Today and tomorrow just don’t seem to be the day to fly the coop.

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U.S. Dollar – This song best describes the long-term future of this terminally-ill currency.

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U.S. Bonds – The defying gravity act continues but Newton’s law shall one day rule again.

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Oil and Gas – The Middle East factor continues to evolve and should remain an underlying major support for oil prices. The “Happy” crowd on Wall Street may discount oil’s impact but the average consumer has felt it right in the pocketbook. It will be interesting to see how they spin this into a good thing.

Natural gas remains in the early stage of a new bull market but, as noted previously, it should be a slow but steady progress theme as a very long base is built.

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About Peter Grandich of Grandich.com

Though he never finished high school, Peter Grandich entered Wall Street in the mid-1980s with no formal education or training and within three years was appointed Vice President of Investment Strategy for a leading New York Stock Exchange member firm. He would go on to hold positions as a Market Strategist, portfolio manager for four hedgefunds and a mutual fund that bared his name.

His abilities has resulted in hundreds of media interviews including GMA, Neil Cavuto’s Your World on Fox News, The Kudlow Report on CNBC, Wall Street Journal, Barron’s, Financial Post, Globe and Mail, US News & World Report, New York Times, Business Week, MarketWatch, Business News Network and dozens more. He’s spoken at investment conferences around the globe, edited numerous investment newsletters, and is one of the more sought after commentators.

Grandich is the founder of Grandich.com and Grandich Publications, LLC, and is editor of The Grandich Letter which was first published in 1984. On his internationally-followed blog, he comments daily about the world’s economies and financial markets and posts his views on social and political topics.  He also blogs about a variety of timely subjects of general interest and interweaves his unique brand of humor and every-man “Grandichism” expressions with his experience gained from more than 25 years in and around Wall Street. The result is an insightful and intuitive look at business, finances and the world, set in a vernacular that just about anyone can understand. In his first year, Grandich’s wildly-popular blog had more than one million views. Grandich also provides a variety of services to publicly-held corporations on a compensation basis.