The Dow Jones Industrial Average has closed up 23 out of 26 days through Friday. As an investor, this sort of thing makes "The Skeptic" nervous. Feels like 1929. Or 1989 in Japan. "The Skeptic" wonders though, how much main street is partaking in this orgy of bullishness.
Here's what we know. We know the economy is slowing. We know inflation is above the Fed's comfort zone (not even accounting for the fact it's vastly understated to begin with). We know America is swimming in debt.
The Fed is trapped. Higher inflation, slower growth. Stagflation? If the Fed cuts rates to respond to the slowing economy and/or the housing debacle the already weak dollar will get punished. This is why "The Skeptic" has gold and silver in the safe. Just in case.
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