Stocks Bonds Gold US Dollar…..the works

Posted by Peter Grandich -

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World Didn’t End…Yet! 6:00PM EST

While I’m not an advisory service and am definitely not a “traders” blog, I do understand many of my readers especially like to know my latest thoughts when market(s) are volatile. So here are my latest thoughts as of this writing:

U.S. Stock Market – We’ve been in the “eye” of an economic storm. And while I continue to believe the back end of this “history-making, end of an era” tidal wave of economic, political, social and spiritual  hardship will be unprecedented , I’ve since March 8, 2009, allowed for one “mother of all bear market rallies” to take place. While certainly not enjoying all the fruits of what has been an incredible bear market rally, I also didn’t stand in front of it and see much of the gains enjoyed in the previous downturn vanish.

It’s been my opinion for many months that a top of historical proportions was going to be made in 2010, and I had looked for it by the June/July time frame. I believed it would be the beginning of a multi-year, if not multi-decade period where the stock market trades like the Japanese market did for 20+ years. The lows would be the March 2009 and the highs wherever we topped out this summer.

This bear market rally has been almost straight up with no real corrections of any size. The bears drew many lines on the way up, only to have the “Don’t Worry, Be Happy” crowd run over them on the way to the most recent highs. It appeared on more than one occasion (most recently at the beginning of the New Year) that the bears could gain control again only to see the market make new recovery highs. Can they do it again?

While I believe the vast majority of the money created in all the bail-outs and easing has not been used properly and will only compound future problems, it still was a ton (as in trillions) and it has given some life to a feeble economic recovery that may still have a few months left in it.

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