What Money?

Were you following the markets today? What do you think. I think the trading relationships between the major asset classes are coming unglued. This could be a very treacherous and unpredictable time to be trading the markets. Unless you are a true believer in whatever it is you are holding, my advice is to get out now, no matter what your losses are at this point. Day traders and buy and hold investors will be equally at risk in the coming days and weeks.

The dollar may have reversed its upward movement against other World currencies. Nobody really knows. The American Government, absent other demand, has begun to buy its own debt. Hello Zimbabwe! Equities are in the middle of a rally that has seen them appreciate nearly 20% in little more than a week, with no fundamental reasons apparent. Gold, after a two week slump, went on a 6% seesaw today and ended up 3%. Commodities are up, even in the face of diminishing demand. Real estate values continue to plummet. 10% of American homes are in foreclosure. Retail spending continues to dry up as credit card defaults rise dramatically. Half of those supposedly in the know, think that economies around the World will be reviving from here on out but many are beginning to believe that a depression of greater proportions than that of the 1920's and 1930's, worldwide, has already begun.

My opinion is that most investment classes will be unstable and trading will be very volatile, at least for the short term. I think that for the most part, the volatility will be heavily weighted to the down side. I think that those assets that end up higher will be far fewer in number than those that go down and that the downers will be down by a much greater margin than the uppers are up.

It's a fools game. Sell out now and wait. Having said that, I'm fully invested and believe I will make a killing. A fool and his money. What money?