« S&P Trading strategy | Home | The Dennis Gartman Interview (exclusively for my readers) »
Buy Gold, not Oil
By Rob | June 27, 2008
Blame the Fed - the worst market manipulator, presently enemy of the middle class and best friend of the rich. By keeping rates low the Fed is discouraging savings, cash and the population ends up putting money in mutual funds, stocks and bonds. Well guess what, the population must be hurting badly right now, because the equity markets and mutual funds are getting killed.
The Fed is serving mostly the rich. It saved Bear Sterns and its $million-bonus banking friends, people they regularly have lunch with, instead of saving the small-business Joe down the street. They should have stopped cutting rates at 4% and use other fiscal tools and margin requirements to cool off speculation in commodities. At this point, the printing machine is fully on and the dollar keeps going nowhere. Buy gold, not oil.
So what else looks good? I don’t like India or China yet, however, Taiwan looks solid. The US equity market looks severely oversold, but may keep going lower. Right now at this very second, every mutual fund in the country is window-dressing. It is the end of 2Q08!! They are buying the oils and dumping financials and homies. Gosh, can somebody ask Bush to step out of office? And what is up with McCain offering $300 million for a new car battery. Translate that amount to Euro and you cant even buy a nice mansion in Europe with this money, what a joker!…. 
If you enjoyed this post, make sure you subscribe to my RSS feed!
Topics: Uncategorized |
June 29th, 2008 at 8:54 am
Well said, Rob. I cant believe we have found ourself in this “perfect storm” situation. Looks as though the next 3 to 5 years are going to be blah (at best) for the middle class.