AS stated above, both gold the metal and paper mines are soaring, but when divided it is apparent the metal is outperforming the paper. This "divergence" could be temporary and obviously 2 things can happen, one or the other will play catchup.
The ONLY way in my mind the US $ can gain ANY traction, is if the other main currency the EURO stumbles. Then demand for $'s may rise enough to create at least a short term rally.
BUT the FED has said it will keep printing, buying treasuries and mortgage paper and do almost anything in attempts to INFLATE vs DEFLATE debts.....this is a very dangerous and stupid strategy.
In the face of less crummy economic news? but what we could argue is economic performance UNLIKE ANY RECOVERY in the last 8 recoveries from Recessions (thanks to data from folks like David Rosenberg) this pathetic data is being trumpeted as reasons to pile into stocks is in my mind on very thin ice. On the street do YOU see a V SHAPED recovery?
And folks we have ENORMOUS manufacturing SLACK! and the DEMAND is just not there to eat that up, PLUS shadow housing inventory, unsold homes remain at or near records. The INCREASE in home sales are coming MOSTLY from "foreclosed" homes.....not what I would call great news.
AS ADP data showed yesterday we are still losing jobs, at very least not creating enough to change jobless picture for the many and might even see the unemployment rate begin to inch upward again.
Those IN POWER will do anything to keep it, ANY THING, believe that.....so if the stock markets rise has you scratching your head......join the crowd, but understand every mystery has an explanation.
Things fond of in Recessions or times of CRISIS are RISING, stocks fly in the face of reality and that can happen for a time, but just as in 2007 and 2000, truth can only be held back for so long......when thrown from a rampaging bull you risk getting GORED. just my 2 cents....that said, there has been NO big selling increase to counter bullish attacks so far....
Duratek
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