What Do You Think Is Going To Happen Next?

Interesting times, indeed, Hock. Say, isn't that an ancient Chinese curse? Something like, "May you live in interesting times", or some such.

My thought is that Fed-induced inflation caused the stock market to rise. When the Fed stopped inflating, the market could not hold the level that it had achieved via inflation and fell back about 1600 or so points. Maybe that taught the bean counters at the Fed something? I am sure that they have not given up on their Keynesian voodoo economics but I suspect that they will be much more reticent about commenting on it in public. I think it likely that there will be Fed support for the economy and that it will be similar to the QE programs. Because of that, stocks will inflate and the market will rise to a higher level.

I will be buying back into the market in select areas in an attempt to capture profits from this inflation. Commodities, especially energy and agriculture, resource exporting country currencies, stocks, and bonds, and good mutual funds that invest in Latin America and Asia (excluding Japan) look good to me about now. I also like the big cap US dividend-paying stocks and the mutual funds that focus on dividends.

I'm long GLD, SLV, SDS, XLE, DBA, DBC, EWA, EWC, USL, SCHE, oil & nat gas in the ground, real estate (home), and physical PMs. GLD and SLV are currently hedged with Sept put options. No debt, enough in cash to pay the bills.

Finally, what happens next is anybody's call...but hoarding at specific numbers seems somewhat foolish.

Nobody can predict if we are going to go back to $6 silver and $600 gold (unlikely) or if it's going to keep skyrocketing...but my weekly PM spending has been the same regardless. I get whatever I can, if it's an eagle and a few dimes, it's an eagle and a few tims...if it's all dimes, it's all dimes. Regardless, it goes in to a box that I don't open unless I need to put more in.

I am personally not a favor of electronic gold...simply because it doesn't take much for records to get lost, or communications systems to go down. What I have in my posession, is always in my posession. What I have in an account, is just that, in an account, where I can't access it without infrastructure.