Loading ...I wish we at Alphas Edge could say that we are surprised by the recent markets move, but we are not. It looks like the dollar will be devalued much further swinging the pendulum closer to the “other abyss”. We are in the middle of a 6 month rally where common sense and evaluations were tossed out the window being replaced by manipulation, fraud, make belief balance sheets, devaluation and bailouts. This is all clear evidence that Thomas Jefferson was right about the bankers.
Friday the stock market (and all equities) had another solid move higher while the dollar lost value against most major currencies. Higher the stock market, the higher the interest rates, the cost of investing and risk to investing. Investors and traders need to be more careful than greedy with every up day. Because when the momentum turns, it’s going to be fast and furious. The same story is playing over and over and over again, just like a BUBBLE. Yet, when the dollar breaks or the new equity bubble pops, no doubt Bernanke will be saying that no one saw this bubble coming.
The Irony is that the economy is worst today than it was 6 months ago when the market was 6660. Sense March lows; we have added 3 million people to the unemployment lines. Worst, it looks like it will be years before companies start hiring again.
Today, we are overbought, over optimistic, over leveraged, in an increase unemployment and interest rates economy with a collapsing currency. Taking a closer look it obvious, cash (just not US) is king.
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