After an appauling week of economic news, the market starts with a stiff upper lip, and trys to define a NEW REALITY for the coming months.
Today's WSJ says that the tech run is over, and people will go back to plain vanilla dividend paying stocks. Well, maybe for a few days, or even a week. But plain vanilla is not what Wall Street is all about these days.
The JOBS DEBACLE is serious and needs a total re-think of policy. Of course, the street is not real big on total re-thinks.
So, the course of least resistance is more of the same.
If rates are low INTER-GENERATIONALLY as I predict, then the dollar is prone to weakness, UNLESS THE MARKET BOOMS ON HIGHER BONDS AND LOWER RATES.
Thats today's mojo.
Even golds are weaker on this reasoning.
STILL, THE TRADE DEFICIT IS ON DECK......AND THE WEAKER DOLLAR IS A GIVEN.
SO, BUY GOLD ON WEAKNESS SEEMS A NO-BRAINER.
MY HUNCH IS THAT THE "SPECULATING CLASSES" WILL CONTINUE SPECULATING NO MATTER WHAT THE ECONOMY OR JOBS DO.
GREENSPAN HAS FILLED THE PUNCH BOWL AGAIN AND AGAIN, AND HE IS NOT LIKELY TO STOP NOW.
SO EVERYTHING GOES UP!
STOCKS! BONDS! GOLD! OIL!
EVERYTHING BUT THE DOLLAR! Get used to it.......THE MIRACLE OF A WEAK PAPER MONEY IS HERE TO STAY!
AND, A STRANGE KIND OF HAPPY DAYS ARE HERE AGAIN.
