Economic Musings

It is amusing to watch one of President Obama's speeches and the stock market at the same time on CNBC...one can watch the market fall, as he speaks.  The same applies to Fed Chairman Bernanke or Sec Geithner.  Obviously the Markets feel these folks are "bad news".

GOLD...it is still the number one commodity to hold.  Economic chaos in Europe and the Middle East make it a "safe haven" in lieu of the declining US dollar.  There is still, as of today, no verifiable proof to the rumour that over the counter trading of gold and silver will be banned on July 15th under the Dodd-Frank Wall Street Reform Bill.

Debt Limit and riots in the USA are a possibility.  Austerity in the USA is not that unrealistic and probably a good idea to reign in the "Socialist Agenda" of the current Administration.  After decades, welfare and handout loving Liberals can see the end to their "fleecing of America" and they don't like it.  Instead they prefer to Tax, Tax, Tax the job creators  of corporations and wealthy individuals to continue the funding of all their socialist programs!  No homeless person on the dole ever created one job.  Liberals, this TAX THE RICH SCHEME is not going to happen!

The Stock Market...Gloom and Doom coming?

The Great US Economic Recovery fades daily.  Stocks are down, housing, employment...debt increases.  The "Global Economy" is a serious factor in US Markets and daily life.  The US can not control the various factions that make up our economy, as they did 50 years ago.  The the US drove the world economy...now we are a mere player.

With that in mind, Global Forces need to factor into trading....world events such as war, famine, oil consumption, population growth drive market forces and can't be ignored.  (I have always thought this...global tensions more a factor than the
Federal Reserve interest rate hikes, for example).  On this basis, "The Virtual Portfolio" has continued to make daily gains and continued the long term goal of a 25% ROI.

Currently, 100% ETF trades, shorting the DOW & S&P, and gold IAU and GLD.  As of today, the portfolio is trading much higher compared to the DOW.

Global forces may also spell Gloom & Doom in the coming months...many forecast a "Market Correction"...analysts vary, but 15% to 25% is not unrealistic.  alas Capitalism and the Market allows on to make money on a rise or a fall...choose wisely.