Post by jeffolie on Sept 8, 2012 16:21:11 GMT -6
Charts can picture a 1000 words. Below Jesse writes well.
my jeffolie view remains 100% of investment funds in metals I can hold in our hands including many varieties, collectables, comemmoratives, etc. since 2008.
An aside: Jesse wonders how high the stocks can go from QE and bailouts...I recall the towering gains in Japan reach 40000 when before it equaled the DJIA...irrational spikes can and have happened such as the South Seas bubble.
" ... I am not sure how far they can take the equity markets in expectations of more QE. But at some point, even if it is after that QE arrives, the markets will begin to sell off, slowly at first,
Below: will the prior highs on the way down create 'resistance' on the way up?
===================================
2.bp.blogspot.com/-17HphNRFQqs/UEpXDJ2pCaI/AAAAAAAAYqk/2CXSpv_RP9c/s1600/golddaily5.PNG
2.bp.blogspot.com/-cCYxI9GJUX0/UEpXDrIqbOI/AAAAAAAAYqs/asUKqKyjJyY/s1600/silverweekly4.PNG
Jesse's Café Américain
" ... I am not sure how far they can take the equity markets in expectations of more QE. But at some point, even if it is after that QE arrives, the markets will begin to sell off, slowly at first, as the focus on the candy delights of monetization turn back towards the decline in earnings and median wage, and the malaise that will continue to grip the broader economy.
This *could* be masked by a bout of serious inflation, if not hyperinflation, but I still do not see that actually developing yet, except perhaps as a precipitous series of devaluations and the resetting of the global monetary system, with a commensurate redistribution of paper wealth as occurred in the Soviet Union on its collapse.
But the risks are great, with many exogenous variables, and so any forecast that one can offer is bound to be diminished by uncertainty.
Whatever may happen, there should be little doubt that this generation will be tested in unfamiliar ways, at least to them, but with many analogues and similarities in modern human history.
www.jessescrossroadscafe.blogspot.com/
my jeffolie view remains 100% of investment funds in metals I can hold in our hands including many varieties, collectables, comemmoratives, etc. since 2008.
An aside: Jesse wonders how high the stocks can go from QE and bailouts...I recall the towering gains in Japan reach 40000 when before it equaled the DJIA...irrational spikes can and have happened such as the South Seas bubble.
" ... I am not sure how far they can take the equity markets in expectations of more QE. But at some point, even if it is after that QE arrives, the markets will begin to sell off, slowly at first,
Below: will the prior highs on the way down create 'resistance' on the way up?
===================================
2.bp.blogspot.com/-17HphNRFQqs/UEpXDJ2pCaI/AAAAAAAAYqk/2CXSpv_RP9c/s1600/golddaily5.PNG
2.bp.blogspot.com/-cCYxI9GJUX0/UEpXDrIqbOI/AAAAAAAAYqs/asUKqKyjJyY/s1600/silverweekly4.PNG
Jesse's Café Américain
" ... I am not sure how far they can take the equity markets in expectations of more QE. But at some point, even if it is after that QE arrives, the markets will begin to sell off, slowly at first, as the focus on the candy delights of monetization turn back towards the decline in earnings and median wage, and the malaise that will continue to grip the broader economy.
This *could* be masked by a bout of serious inflation, if not hyperinflation, but I still do not see that actually developing yet, except perhaps as a precipitous series of devaluations and the resetting of the global monetary system, with a commensurate redistribution of paper wealth as occurred in the Soviet Union on its collapse.
But the risks are great, with many exogenous variables, and so any forecast that one can offer is bound to be diminished by uncertainty.
Whatever may happen, there should be little doubt that this generation will be tested in unfamiliar ways, at least to them, but with many analogues and similarities in modern human history.
www.jessescrossroadscafe.blogspot.com/