This site has featured evidence of economic weakness in the U.S. for some time, basically since last spring. Now that the Fed agrees so heartily as to add QE on top of Operation Twist, I start looking for buying opportunities in economically-sensitive assets; this being a total reversal of the stance I adopted in May of 2011. (Since that time, the New York Stock Exchange Composite Index is flat and the zero coupon 30 year T-bond has had a massive and totally unremarked upon total return.)
Here, for example, is a cut and paste from RealClearMarkets tonight:
- The Economy
Looks pretty scary, correct? (No surprise, given the headline on gold, that gold is down 1% as we speak, LOL.)
Typically these are times to ignore the fear that is being promoted, at least short-term and often long-term.
The monetary inflation that the Fed is creating must by definition go somewhere. Why not stocks and physical, unprintable commodities?