Thursday, September 25, 2008
Sometimes there just isn't anything to do.
The stock market is on hold, waiting for a conclusion to the mortgage/broker/banker bailout plan. The bond market is waiting for the same thing. Ditto for the gold market.
Most stock charts are a muddled mess with no distinguishable patterns. And it's going to take a few days before anything develops.
Since there isn't a clear edge one way or another, I've been sitting on the sidelines the past couple of days. I've had nothing to do but watch CNBC and listen to the "experts" talk about the bailout plan.
Some version of the plan is going to go through. It has to. Too much is at stake and too much political capital is on the line.
So we might as well get used to the idea of the United States Treasury propping up the securities markets.
But three things bother me...
Let's face it. The government will approve some form of bailout plan. Lawmakers will rush it through on the fear that we have to do something NOW. It's going to result in bigger government. And it's going to put more power in the hands of fewer people.
Seems to me those are three excuses for the government to crank up the printing presses and flood the world with dollars. In other words, those are three pretty good reasons to buy gold. So maybe there is something to do in this market after all.
Best regards and good trading,
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