For Wednesday February 19, 2014, We Recommend Against Equity Investing


Investment Recommendations:

Sell US equity positions and hold cash.  Price inflation hedges should be held or accumulated for the long term as price inflation is starting to accelerate.  Avoid all bonds, including the new MyRA bond scheme from the Feds.  Ignore the propaganda.

Technical Comments:

The S&P 500 advanced 0.12% Tuesday with volume unavailable at the time of this post.  If the S&P 500 declines about 48 points on Wednesday (-2.8%) our automated market forecast could change to an uncertain trend.

Subjective Comments:

It sounds like the European Central Bank might be about to launch their own version of Quantitative Easing.  They have been sterilizing bond purchases for years, but it looks like bond purchases will continue without the sterilization.  That is central-bank-speak that means “money printing”!  If this is indeed what happens, a bubble-boom is likely to occur in the Eurozone.  This could have some spillover effect in US markets, but any spillover is only transitory.  US money supply growth rates are what drive the bubble-boom in the US, and those growth rates remain erratic right now.

We will be winding down our daily blog posts.  We discussed why with our previous post.  Our last blog daily post will be Friday, April 11th.  We are considering weekly posts where we will update observations on the US money supply.  We are also considering maintaining publication of our daily signals via TimerTrac.  Another possibility under consideration is a subscription service to our weekly observation of US money supply trends.  We would welcome any comments if you care to email us.

2 Responses to For Wednesday February 19, 2014, We Recommend Against Equity Investing

  1. diogenes227 says:

    Funny, every time I notice your recommendations, you’re not recommending anything, like hedge funds that sit on their hands in order to line their pockets with holding fees.

    • The difference between the hedge funds you mentioned and us is the fees charged. The hedge funds make money sitting on their hands. We only make money when our customers make donations, so we have a very different financial incentive.

      If you look at our stock recommendation, you are correct. We have been recommending against investing. However, we have been consistently recommending price inflation hedges in our commentary.

      Thank you for your comment. We do appreciate it.