AMID THE CHEERS ON WALL STREET THERE LOOMS AN OMINOUS POSSIBILITY...
A "MELT UP" IN COMMODITIES...AND BY THAT I MEAN...GAS, OIL AND GOLD...
IT HAPPEN LAST YEAR ABOUT THIS TIME...JUST BEFORE THE "BIG COLLAPSE" IN SEPTEMBER...
WITH A "LIQUIDITY PANIC" RUNNING WILD ON WALL STREET... A LOT OF SMART MONEY WANTS TO "PARTICIPATE" IN "THE RALLY..."
BUT THESE SPECULATORS COULD RUSH INTO COMMODITIES...AS THE "REFLATION PLAY" OF CHOICE...
INSTEAD OF THE PAPER ASSET MARKETS WHICH HAVE BEEN THE TRADITIONAL PLAYGROUND FOR HOT MONEY GLOBALLY...
SIMPLY PUT...
GOLD AND OIL ARE BECOMING A "NO BRAINER" FOR THE RIGHT REASONS...
AND STOCKS AND OTHER PAPER ASSETS ARE RISING WILDLY FOR THE WRONG REASONS... PAPER ASSET INFLATION NOW IS BASICALLY BETTING ON THE "COME OUT ROLL"...ASSUMING THE US ECONOMY IS GOING TO "RECOVER..." WHICH IS ACTUALLY QUESTIONABLE AT THIS POINT...
THE OIL, GOLD AND GAS BET IS NOT DEPENDANT ON AN ECONOMIC RECOVERY...INDEED, IT'S STRICTLY A THEORY BET ON THE MONEY PRINTING WHICH IS THE ONLY BULLET IN THE FEDS "GUN" AT THIS POINT...
NET NET ITS BETTER...AND SAFER...TO BE "RIGHT" FOR THE RIGHT REASONS...THAN TO BE "RIGHT" BECAUSE THERE IS A LIQUIDITY PANIC IN A TOXIC ECONOMY...
