SUDDENLY, GOLD, SILVER & BITCOINS ARE WORTHLESS.....
Just when the bitcoin mania was going great and everyone I knew was emailing me about them, blamo! Goodbye bitcoins!
What specifically happened today to make all assets (excluding paper dollars and bitcoins) much more worthless than Friday? While I am not stepping in front of this train that is heading south, I find several things quite odd.
WEIRD THINGS IN THIS MARKET OVER THE LAST COUPLE OF WEEKS
First, that everyone in the world could watch oil, gas, and every other commodity collapse and assume that the stock market would continue ramping higher.
That all conservative stock holdings like utilities, consumer staples, and healthcare easily beat small caps and other companies and no one was concerned about the market's path. If everything is great, why was all the money going into defensive stocks?
That unemployment was greater, housing, was slower, and consumer spending was falling, didn't worry anyone.
That the market reached all-time highs everyday yet emerging markets kept getting destroyed.
Bond markets suddenly were going higher even though the equity markets hit highs.
THOUGHTS ON GOLD AND SILVER
I think gold can visit $1,200 so I'm not moving too quickly to buy this drop. Longer term, I am betting on physical assets as there is no way Japan can continue their actions without destroying the yen. If they destroy the yen, the daisy chain of connected global financial entities will pretty much destroy it all. I'd rather have some shiny stuff than an electronic asset in a bank that can be given a haircut to save a few important financial institutions. Don't believe me, just ask the citizens of Cyprus.
THOUGHTS ON BITCOINS
Do not do it! I have not had time to finish a post on bitcoins, but at the end of the day, you don't want to own this very interesting and scary electronic currency.
No other comments are necessary. By Friday the markets will be back to moving higher, nothing to see here folks!