The US dollar has been considered the reserve currency of the world. That means that when the you-know-what hits the international fan, the dollar is SUPPOSED to rally. It barely moved yesterday! Gold did move up significantly. This amounts to a market timing signal vote of “low confidence” at best. This is one more bit of evidence that investors no longer attribute as much “flight to safety” status to the US dollar as it did in the past.
You can thank Dr. Ben Bernanke as the designated leader of the destruction of our currency’s status. In fairness to him, he believes he is saving us.
In case anyone thinks this is just a currency popularity contest, I’d point out that the decline of the US dollar’s status means higher costs of borrowing for US citizens unless this course is reversed. Our government has decided to “save the system,” by ruining YOUR credit. Yes, you can maintain your personal credit number by behaving responsibly in your own life. In the meantime, we allow our leaders to degrade our credit rating in a much more substantial way.
Time to throw even more of the bums out. Throw out all the Congressmen and women (and legislators at every level) who vote every day along the party lines that continue to sap the responsible to help the irresponsible. Time to be conscious in our voting isn’t it?
What to do? My subscribers have been buying gold (the gold ETF, GLD) since the market timing BUY signal on 1-28-2011. The next buy would be a brand new high above 139.56, but be aware that gold could make a new high and then reverse. Sometimes the market will test an old high, move above, find insufficient buyers, and then the market makers scramble to get out and numerous stops go off sending gold back down. It is the nature of the beast.
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Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.
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