I've had early October as a date on my radar to keep an eye out for and too see what the markets are doing. I had predicted a market drop at or around this time. Now, either the market is getting ready to drop, or something else is going on. As for the market dropping (Dow Jones, S&P 500), the recent highs that the market is seeing is being done on horribly low volume. As of 2:00 P.M. the Dow volume is 90M, less than half of the 200M average the Dow usually trades. It is very possible that this rally is a suckers bet for the naive investor, the ones that follow the market instead of positioning themselves ahead of time. If the market isn't due to crash, then the something else is going on....without us knowing about it. That something else is QE2. The Fed has made it perfectly clear that it isn't going to allow the markets to drop or the economy to enter a deflationary spiral. I doubt that if the Fed was going to start QE2, that they'd let anyone know the exact day that they would start this or the extent of which it will run. I'm having a hard time deciding to get back into the market at this time. Will it collapse on the low volume that we are seeing, or is QE2 already taking place and propping it up? Either way, this still isn't the inflation that I'm worried about....which as I said before, I believe takes 4-6 years to hit the average consumer in prices. If April 2009 was the start of this, than 2013-2015 is when we'll see the inflation that I'm expecting. Although I'm surprised that it is already affecting several commodities already.....Coffee, Bacon, Furniture, and many more. I read an article where a Mr. Munger made this statement.... "I don't have the slightest interest in gold. I like understanding what works and what doesn't in human systems. To me that's not optional; that's a moral obligation. If you're capable of understanding the world, you have a moral obligation to become rational. And I don't see how you become rational hoarding gold. Even if it works, you're a jerk." I see, I'm a jerk, because I'm trying to save myself in this crappy financial environment, and you are mad because I have gold to invest in instead of your crappy stock that I believe is doomed to drop once again. And one more thing, I didn't cause this financial crises. Why don't you call the people who caused this crises the jerks. And who are these people that caused this crises......anyone who has an outstanding debt. If you run up a deficit that you can't pay for, you are part of the problem. Of course, people in debt don't have money to invest in gold. Shame!
