Not much action following the new Dow high. Not much follow-through. But no big breakdown, either. As near as we can tell, the Fed's EZ money has driven up stock prices. Investors expect more EZ money. So they think stocks will go up more.
The Dow rose another 48 points yesterday. Gold was up $24 per ounce. Nothing remarkable. Nothing illuminating, either. The newspapers and TV channels all reported the Dow 15,000 story as though it were just a stepping-stone on the way to 16,000... or 20,000... or 30,000. Heck, the sky's the limit!
An extraordinary thing has happened... Thanks to the courage of severely depressed Americans, neither chance nor intention... neither the gods nor "towel head" terrorists... pose a bigger threat to them than they pose to themselves.
At the start of last week, it was widely reported that US central bankers had gone as far as they were willing to go. There were voices in the Fed, said the news, urging caution. There would be no further monetary stimulus measures, said the commentators.
Last night, six of us went out to dinner at one of the nicest restaurants in Salta. We ordered two bottles of good Laborum cabernet sauvignon. We had beefsteaks, dessert and coffee. The bill came to 1,058 Argentine pesos (about $200). Was that a lot... or a little?
Stocks and gold were slapped down yesterday. The Dow lost more than 130 points. Gold eked out a $10-per-ounce gain. What does it prove? Nothing. Central banks are engaged in a breathtaking program of activism. We don't know where it will lead. But judging from the historical record, activism and central banking go no better together than drinking and...
US stocks are turning down this morning, following news that private-sector job growth in the US slowed the most in seven months. We've already recommended you exit US stocks and buy gold on the dips. Nothing has changed our view... So we'll get back to where we left off yesterday – making camp for the night after a long...