For Thursday March 27, 2014, We Recommend Investing in US Markets

Investment Recommendations:

Hold investments that grow with US markets, but pause in accumulating more. 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 dropped 0.7% on Wednesday with volume above Tuesday but below the 30-day moving average, resulting in another strong-volume down-day. There is no predictive pattern yet, but a negative pattern is forming in the daily market data. Wednesday’s decline was sufficient to trigger our stop-loss algorithm and change our automated market forecast to an uncertain trend. If the S&P 500 advances about 2 to 3 points on Thursday our automated forecast could return to a growth trend.

Subjective Comments:

We are leaving our subjective recommendation as is, but we do not recommend further accumulation. The daily market data is showing signs of weakness. If the money supply growth rate appears to be slowing we are likely to change our subjective recommendation tomorrow, but we don’t want to react too quickly. Price inflation hedges will be good investments as the effects of the last several years of money printing are starting to take effect. Official CPI numbers might be relatively “tame”, but that’s not a true reflection of what consumers are feeling. US Food Prices, which are excluded from the headline CPI, are up 19% since the start of the year.

Wind Down of Daily Blog Posts:

We will continue to post about US markets through the end of March. We are planning on suspending daily posts in early April. We will continue to update our market signals at for our readers interested in tracking our automated and subjective market recommendations. For interested readers, we have the following recommendations for finding excellent commentary:

Best Economic Blog:

The editor of is Robert Wenzel, and he offers a daily email subscription that is absolutely fantastic! You can subscribe at this link. We highly recommend this subscription. You will continue to get great commentary and analysis on the US money supply growth rate using Austrian Business Cycle Theory.

We also suggest, although the blog posts there tend to be a bit snarky and often use terminology that can be difficult for the average reader to follow. is intended for professional traders. There is a larger staff at, so you will find it updated more frequently than, but that’s not always a good thing.

These recommendations will serve you well as we continue to wind down our daily commentary.

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