HISTORIANS LOOKING BACK AT THIS RALLY WILL PROBABLY NOTE THAT IT OCCURRED...JUST AS THE DOLLAR WAS GOING INTO A LONG TERM DEVALUATION MODE....
SO IN EFFECT THE DOW IS ANTICIPATING THE COMING DOLLAR DEVALUATION AND "ADJUSTING" SHARE PRICES IN ADVANCE OF IT...
THE MARKET ALWAYS ANTICIPATES...RIGHT?
EVERYONE KNOWS THAT THE REAL ECONOMY IS WEAK...AND THE DOLLAR HAS BEEN DECLINING BECAUSE OF THE MASSIVE DEBT AND DEFICITS...
SO MY HUNCH IS THAT IN THE HISTORICAL CONTEXT THIS MASSIVE RALLY IN STOCKS WILL BE SEE AS A HARBINGER OF A COMING DOLLAR DEVALUATION...
REMEMBER ASSETS ARE ASSETS...BUT, THE DOLLAR IS NOT A DOLLAR UNTIL THE MARKETPLACE SAYS IT IS... AND RIGHT NOW, THE MARKET IS SAYING THAT THE DOLLAR HAS A LONG LONG WAY TO FALL...
HENCE THE ASSET RALLY IN STOCKS...AND COMMODITIES.
BUT WHY NOT REAL ESTATE...BECAUSE IT'S COMING OFF OF A RECENT BUBBLE AND IT'S TOTALLY DEPENDENT ON INTEREST RATES...WHICH WILL HAVE TO RISE TO "SAVE THE DOLLAR" PROBABLY NEXT YEAR...OR THE YEAR AFTER...
IN A SENSE THIS IS A RALLY ABOUT NOTHING....UNTIL YOU LOOK AT THE FUTURE OF THE DOLLAR...AND ALL THOSE BONDS THAT WE NEED TO SELL TO HOLD UP THE ECONOMY...
THE HYPERINFLATION WILL COME TO MAIN STREET...ONLY NOW IT'S CONFINED TO WALL STREET...
