THE PLUNGE IN GOLD AND THE RISE IN THE DOLLAR ARE COUNTER-INTUITIVE MOVES WITH NO BASIS IN MACROECONOMIC THEORY AND ARE THUS GREAT FUTURE OPPORTUNITIES FOR INVESTORS SEEKING SOLID MACRO BASED INVESTMENTS.
IN SHORT THE RISE IN THE DOLLAR ON THE FED MONEY PRINTING IS NUTS!
AND ON THE WEAKENING OF THE US ECONOMY...WHICH IS ALSO LONG TERM AND MACRO BASED...THE TRADE DEFICITS ARE STRUCTURAL AND THE AMERICAN ECONOMY DOES NOT ACTUALLY "PRODUCE" ANYTHING ANYMORE...EXCEPT OF COURSE THE BELOVED "ASSET BUBBLES."
THIS MOVE IS ALMOST ENTIRELY BASED ON THE HOPE THAT THE FED WILL NOW BE EVEN MORE AGGRESSIVE IN IT'S INTERVENTION IN THE FINANCIAL MARKETS....AND WILL CONTINUE AND INCREASE IT'S COMMITMENT TO WALL STREET AND THE AMERICAN BUBBLE ECONOMY...
WE ARE BACK TO THE "HAPPY TALK" BASED VIEW OF THE AMERICAN FUTURE...WHICH ONLY HOLDS WATER FOR VERY SHORT PERIOD...OR UNTIL THE NEXT SET OF DATA POINTS COME OUT.
PRAY FOR MORE DROPS IN GOLD!! AND FOR A RISING DOLLAR BASED ON THIS FICTION...
THE PROBLEM IS THAT THE MARKET WILL NEVER BE ABLE TO "RUN" ON THIS NONSENSICAL VIEW OF ECONOMIC REALITY...
IT'S GOOD FOR A COUPLE OF "SPUN" RALLY DAYS... BUT IT WEARS OFF QUICKLY AND THE MACRO BUYERS STEP IN AND THERE IS A REVERSION TO MACRO BASED THINKING...
WE'VE GOT A FIRST CLASS TICKET ON THE BULLSHIT EXPRESS FOR A FEW DAZE...ENJOY THE RIDE!
P.S. OR IS THIS ALL AN APRIL FOOL'S JOKE...
WELL, IT DOES NEED TO BE APRIL FOR THE FOOL'S TO TO RUNNING ON WALL STREET!!
