Stock market strength has been flat three weeks running while the Average continues to bounce around, looking soft in the process. Here’s a look at the most recent 12 months.
Stock market strength looks scared to move higher, and with current Market conditions, who could blame it.
Looking at gold’s trend-line, especially the last few months, it appears to have taken its eye off the poor state of money circling the globe; and as seen in my Hang-Over blog, gold’s long term trend also looks to be flattening out. The Dow Average, with just a 2.9% gain for this period, is barely keeping pace with inflation. In other words, the Dow is just about breaking-even in the most recent year – its gain completely wiped-out from inflation.
And that’s why your portfolio must travel on a trend-line above it! You can’t make enough money otherwise (especially when considering the future effects of recent Supreme LetDowns.)
It’s always a good time to reassess your plans and allocations when Market conditions change, strength is flat, and both GDP and the DJIA look soft. And with the Dow just 500 points from its historical high point, now is a great time to move things around before the “fiscal cliff” comes to pass – because when that happens, stocks will trade well-below “fair value” and gold will rise sharply. Remember, it’s buy low sell high.
See these blogs for more information, or contact me directly.
Stay tuned…