After a 350 point drop last two days, it would not be uncommon to see a technical bounce today. However, this morning’s durable goods number will be very hard for the “Don’t Worry, Be Happy” crowd on Wall Street to spin positively
When you combine it with the latest housing numbers, the “happy" people’s cry going into the New Year that the economy was getting strong looks more and more like another one of their “fantasies”.
This then bring into question the FED’s tapering. My opinion is they do a small taper again because if they don’t, they will look totally dis-jointed. Weaker economic numbers in February (especially employment) and then next month’s tapering could seriously be called into question.
I’m quite content wearing the bear suit again.
Gold did indeed run into resistance in the $1,275 area and the gold haters are trying to lean on it knowing getting above there can lead to a powerful rally. Despite their usual antics, the overwhelming physical demand and the potential smoking gun in Germany, leads me to believe we shall see $1,300+ in February.
It bothers some when I call retirement a “man-made myth” but as I described in my book it was never part of human life until the late 1800s. Before then, people were not literally killing themselves to gather assets in their first 75% of their lives in order to live “comfortably" the last 25%.
The financial industry has “milked” this modern day perception for all its worth and as it usually does, sell products and services that benefit themselves more than their clientele. With the fear of outliving ones assets now a real concern, I find the financial services industry in “overdrive" to capture assets and most people unfortunately falling into this trap.
Just know generations before you somehow managed and not with all the “stuff” we now have assumed will make us better off. Sadly, I truly believe the next American generation will be the first one in our history to be “worse” off than the previous one.