“All the while, the market continues to grind higher, disbelieved by a significant percentage of market participants…How can we reconcile these apparent contradictions? In a word, it is the Fed. My read is the only thing standing between you and an ordinary cyclical recession — including a 20-30% drop in the SPX — is monetary policy.” Ritholtz
“With a “titanic battle” underway between inflationary and deflationary forces, Gross’ own expectation is that inflation is about three times more likely…” Advisor Perspectives
Bonds are like internet stocks in 1999 on a valuation and sentiment basis. How does that end well? Reuters
Vale says iron ore won’t go below $100 – 40% of Chinese output is already off the market at Mining. I’ll suggest a Chinese growth re-acceleration is premature, though BHP says sees China’s growth strengthening in H2 at Reuters. Maximum opportunity for resource investors would be for a bottom in materials stocks to coincide with the end of the current (early) cyclical gold run. It never turns out so clean, but we’ll keep watching.
“I’ve long held the stance that its brilliant business model makes it the perfect silver stock.” Scott Wright at Zeal.
Enjoy your weekend.