Market Observations from Peter Grandich

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Posted by Peter Grandich for Money Talks

on Thursday, 21 November 2013 06:10

Screen Shot 2013-11-20 at 10.12.41 AMIt won’t be long before the “Don’t Worry, Be Happy” crowd on Wall Street fills the airwaves with talk of a “Santa Claus Rally”. Remembering my name is Grandich, not “Grinch”, I’m not about to attempt to steal their annual “propaganda” by pointing to a number of negative technical and fundamental factors. Besides, the jolly group of always cup half-full pundits can help in getting my “megaphone” top I’ve been looking for before turning outright bearish on U.S. equities. http://moneytalks.net/peters-content/10591-beware-the-santa-claus-rally.html 

With Yellen expected to pick up with Bernanke left off, the 3% 10-Yr.T-Bond level should hold for the foreseeable future. This belief doesn’t change my belief U.S. bonds are the worse investment for the next decade because that belief was expressed when the 10-Yr was under 2%. Seeing how the gangs of misfits in D.C. were barely able to kick the debt can a little bit down the road the last time the debt ceiling was reached, it’s not a question of if but when, the bond market implodes.

Gold and silver is fast becoming the “Rodney Dangerfield’s” of investment vehicles – they can’t get any respect. After many up years, this year shall be a significant downer. Those of us who own mining and exploration shares has seen the pain magnified higher depending on how far down we went down the mining and exploration shares food chain. 

Liquidity will begin to dry up as November becomes December and believing gold and silver are being highly manipulated (not an excuse, just fact IMHO), those forces who have been at work look like their Christmas Day will be filled with peace and joy while us bulls will have little more than coal in our Christmas stockings. 2014 can’t come soon enough.

And finally, the U.S. Dollar may have held just above key support and it too will see liquidity dry up, it too shall implode thanks in part to the worst U.S. President ever and an inevitable revolt against Washington D.C. in general by the world powers and markets.

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