It’s about time that we admit that this isn’t a stock market at all. It’s obviously a dollar market. When the dollar goes down, the stock market goes up. When the dollar goes up, the stock market goes down. It’s a simple formula. All a speculator has to do is follow the dollar and he can’t lose. The problem is how does the speculator figure out what the dollar is going to do? Worden Brothers Stock Report on 11/21/10
It should be pretty simple. Whoever managed to get a stock report a month early (Worden Brothers Stock Report on 11/21/10) should have no trouble at all getting the value of the $ index early, too.
How does the speculator know which way the dollar is going? The way to know is to listen to the nonsense coming out of the mouth of Bernanke. If he starts saying that inflation is too low and that more QE is necessary, well get ready for the value of the dollar to plunge. Putting money into any commodity that cannot be created ex nihilio is safer than the dollar. We own a small number of shares in Rogers Sugar Income Fund (rsi.un Toronto). It went up without explanation or breaking news by 7% this week.