I continue to believe the “Don’t Worry, Be Happy” crowd can keep the U.S. stock market afloat through Labor Day. WE will need to watch carefully after that as my scenario remains that the U.S. economy shall roll over fairly sharply this Fall and Winter causing any Fed tapering to be short-lived. I also believe if and when this occurs, the FED shall be perceived as behind the curve versus ahead of it up until now.
There are a whole host of concerns, including but not limited to:
- Despite trillions of dollars from QE, the U.S. economy has seen little if any real sustainable growth. Much of the so-called job growth is part-time, not great paying jobs and has given a false sense that we’re moving forward.
- The FED is not the cure all, running out of silver bullets while fiscal policy is nearly non-existent.
- When mom and pop show up again, time to exit is near.
- America has robbed Peter to pay Paul and Peter is tapped out.
- Social crisis shall rival economic ones for Americans going forward
- The bears continue to try and break gold lower. We need a few closes above $1,350 to get real momentum to the upside going (and they know that t0o). Seasonally favorable period for gold upon us.
- Despite all the hoopla that the U.S. Dollar was in a supposed mega new bull market, it’s merely treading water in a secular bear market that appears ready now to resume to the downside.
- Teranga Gold bid for Oromin Explorations was successful-Thank God! Those of us who couldn’t tender should receive a similar offer soon as TGZ moves to acquire the remaining shares of OLE. TGZ and ADV on this list.