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Commence Phase 2 Of Melt Up

4 November 2010 5 Comments

Bernanke got what he wanted.  Stocks to go up.  This is the gameplan now.  Kill the dollar to increase the price of risk assets such as stocks.  It’s the wealth effect from stocks.  Stocks are up big today and so is gold.  The question is will stocks be able to outpace gold?  If gold rises faster than stocks, then stocks are not gaining value.  Quite the situation we have in the markets and in the world of monetary policy.  Got inflation-hedges?

5 Comments »

  • TaJ said:

    Of course, much more interesting than the melt up – which we all knew was coming – is trying to figure out what the break points might be, where the printing press might be put offline. Probably nothing until January though.

  • darla_serrano said:

    I'd also like to point out that Silver would be a great starting investment for those looking to start hedging against the coming tsunami of inflation. Silver has a much lower entry point and has done very well recently. The 90 day chart has been amazing and Silver just broke through a resistance layer at $25. In the end people need to start hedging against the drop in the dollar's purchasing power.

  • TaJ said:

    Silver does seem to be a better value than gold at the moment, as well, for whatever value means in this current crazytown we live in.

    To note, I'm long SLV though so of course I think so. 🙂

  • 20smoney said:

    Yep I'm a silver fan — i'd definitely encourage physical ownership over the ETFs – I read all kinds of scary stuff about the ETFs. I do hold some but more for trading than "ownership"

    Good news guys, when the dow hits 100k, we're all going to be rich

  • 20smoney said:

    Silver broke $26.

    What will it take to stop this lunacy?

    $5 gas? $10 gas? $15 gas? What will gold/silver be at in these situations?

    What a mess.