Wednesday, August 21, 2013
Whither the Economy?
I have been pondering the gold and stock markets this week, and I am concluding that there will be another leg to the downtrend, then a nice robust rally in the stock market for about a year. The rally may be as much as 50%. That will absorb some of the liquidity that the Fed has created. I am waiting for another fall before getting in. The same is true of gold, but the fall might be sharper. I have been totally out of precious metals since early April. I am about 35% in the stock market. If it falls another 5-10% I'm in.