Stocks Soaring, 'Recovery' Continues, What Could Go Wrong?

By: Ryan Jordan | Thu, Jun 12, 2014
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The news this week that the ECB is going to move interest rates into negative territory is just one more example of something seemingly unthinkable a few years back now not only seeming normal, but in fact becoming the justification for conventional stock markets soaring around the world. I realize that most of us stock market skeptics have had things wrong for too long to remember, but the fundamental fact that central bankers still feel that inflation is too low, coupled with their own belief that they can control, or levitate, markets as they desire, will at some point provoke more fear than greed among speculators. The planners are not invincible, there will always be a tightening, and the law of unintended consequences has not been revoked.

The spokespeople for corporations, mega banks and the government are telling me that the labor picture has recovered to where it was nearly SEVEN years ago, conveniently forgetting to count people who have left the workforce -- since we all know Americans save so much that anyone leaving the workforce must be doing so voluntarily. The Orwellian freak show called the "Recovery" continues -- hope you enjoy the show.

In the precious metals markets, gold, silver and mining shares are still scraping along the bottom, even as silver coin sales for May were higher than the same period last year, remaining quite strong. Real physical demand for real physical metal continues. Of course it is not the main driver of price. Paper, or electronic speculators maintain a bearish posture that, while not quite a record, is still remarkable, especially given the news from the ECB noted above.

Meanwhile, US equity markets continued to move on up into all-time record territory this week. Bullishness among smaller brokerages and retail investors likewise remains near all time highs, while the VIX, or measure of fear in the markets, nears an all-time low. Yes, this overvalued, overbought, overbullish condition can go on for longer than many of us whining nay-sayers think possible. But, at the same time, facts are stubborn things. It is a fact that this equity market rally is closer to the end than to its the beginning. I'm sure many believe that they know when to get out, or that this time is different. But to me, it never is.

 


 

Ryan Jordan

Author: Ryan Jordan

Ryan Jordan
Silver News Blog

Ryan Jordan

Ryan Jordan has been blogging about the precious metals since 2010. However, his interest in the precious metals markets spans nearly 20 years as both a coin collector and private trader. Ryan believes there is a lack of serious discussion of how undervalued precious metals like silver are, and he aims to explain the many reasons why people should take silver investing seriously without relying on hype, sensationalism, or scare-tactics. Ryan Jordan recognizes that assets like silver serve a dual function: one, as a real asset that can provide portfolio insurance as a non- correlated investment, and two, silver can appreciate significantly in a short period of time. Silver could be the best performing asset you could own, with or without a significant crash in the dollar, or other financial mishap. Ryan Jordan's articles have appeared at financialsense.com, gold-eagle.com, investing.com, jessescrossroadscafe.com, silverbearcafe.com, silverstrategies.com, wallstreetformainstreet.com and numerous other sites.

Ryan Jordan believes a historical perspective is absolutely essential for anyone trying to navigate today's financial markets. It is this unique historical perspective that he tries to work into his analysis of the silver market. Ryan received a B.A in History from the University of California- Los Angeles in 1998, a M.A. in History from Princeton University in 2001, and the Ph.D in History from Princeton University in 2004. His professional research involves the history of social movements, religion, and freedom of speech in American history. His two most recent academic books include: Slavery and the Meetinghouse: The Quakers and the Abolitionist Dilemma (1820-1865) and Church, State ,and Race: The Discourse of American Religious Liberty (1750-1900). As a peer-reviewed historian, his articles have appeared in The Journal of the Early Republic and Civil War History. Ryan has taught US history at all levels, ranging from undergraduate to graduate students, at Princeton University, Lafayette College, the University of California-San Diego, Mesa College and Palomar College. Currently he teaches at the University of San Diego and National University, in La Jolla, CA.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
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