What a difference 4% makes!
Greenspan's "One Percent Solution" is morphing into the "Four Percent Solution!"
With the 10 year bond at 4% everyone is dumping income ASAP!
REITS ARE PLUNGING!
GOLD IS WAY DOWN!
PREFERREDS CAN'T FIND THE BOTTOM!
Is all of this pre-mature? Perhaps, but you don't need the economy
to boom to justify these declines.
It is equally possible that a STAGFLATION SCENARIO is in the offing.
Here, layoffs continue and the economy stagnates, even while the Fed
tweaks rates slowly up, while the dollar and stocks soar albeit
temporarily.
In short, I'm looking for a STAGNATE ECONOMY WITH HIGHER RATES AND A
STRONG DOLLAR RESULTING THEREFROM.
AS TO STOCKS? CALL IT RANGE BOUND SMOKE AND MIRRORS.
STOCKS AND GOLD WILL LIKELY BE RANGE BOUND INTO MAY, BUT WITH ENOUGH
YADA YADA TO KEEP THE SUCKERS FLOCKING IN AND OUT IN A STATE OF NEAR
CONFUSION AND PANIC.
GREAT FOR WALL STREET COMMISSIONS!
BUT NOT GOOD FOR MOM AND POP, WHO SHOULD PROBABLY GET OUT UNTIL THE
GEOPOLITICAL, ECONOMIC, AND ELECTORAL DUST SETTLES.
Curiously, there could be a KERRY RALLY coming;
As The Street prepares for a new administration with the
attendant "optimism" about getting "the grown-ups" back in charge in
Washington!
MORE ON THE COMING "KERRY RALLY" LATER.............stay tuned, this
is going to get "interesting."
