It was another sloppy day on Wall Street today, as once again the Dow struggled to maintain the action zone midpoint while gold regained its stride. That should tell you something.
These three Wall Street Journal headlines should drive the point home.
Economy Fails to Add Jobs
Stocks Futures Keep Falling, and
Big Banks Face Suits on Mortgage Bond Losses
In short: the economy is weak and headed in the wrong direction, which makes the future of stocks bleak, and the currency crisis is, in fact, a world phenomena. There are problems in American banks too – including the central bank (Federal Reserve) whose answer to everything is print more money.
That’s not sound money policy. And it’s not sound economic policy.
Shore up your asset allocations and cash reserves. Inflation is on the rise and when it starts to threaten market stability, the stock market will move in way that makes recent behavior seem stable.
Keep your eyes open…
Enjoy your weekend!
Talk soon,