Loading ...Someone dial 911, or at least phone Cramer! I had been expecting a pull back for weeks now and been proven a liar. The DJI keeps souring higher and higher without the sightless significant sell off. This just goes to show that the market will do what it wants to do, no matter what the reality is. But I still stand on what I been saying, at these levels the US stock market is ridiculously overbought. What appears to be an orgy of optimism over the stock market has left everyone infected with unrealistic expectation. Folks are jumping into the market unprotected, puts be dammed. Yet, I have wisely stayed away for the US Stock market because as someone who is multinational, I’m not happy when the DJI is up 0.5% in a day the dollar is down 1%.
Am I the only one that can see the storm forming on the horizon? They are trying to re inflate the RE industry with inflation by dollar devaluation and artificially low rates. This can only last for so long before the dollar starts to go the way of the Zimbabwe Republic. So while the market rallies, the dollar will fall. What the traders need to keep an eye on is a reversal of this trend. When the dollar starts to strengthen because of increasing rates is time to get out of the market. As for me, I’ll stay in emerging market and commodities until the time comes to get out, buy dollars and park them in real assets.
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