Wednesday, October 14, 2009


Giving credit where credit is due, no pun intended, well maybe sort of—I mean there is a lot of government subsidy going into the system now—the DJIA peeked over 10,000 on a long trudge up from it's mid-6000 nadir. Anybody who bought in the 6000s and is still holding onto things knows a lot more than I do, is very lucky, or knows the right people.

I watched this show in the real estate market of 2006, patiently, and so I'm sitting back and watching the same show again now. As stocks rise the dollar will be unsteady, but gold is robust, comfortably above $1000/oz.

The fundamental premise of this blog is unchanged. In good times the dollar can be strong AND the market can be strong. But in a recessionary environment, one of them has got to give. Those holding onto bonds—treasury, corporate, or securities—will not sit idly by while their wealth is deflated away.

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