Follow The Leader

Silver is up 50% year to date, Oil up 15%, Stocks up 7.5%, Gold up 6%, Bonds are down 1% and the US Dollar is down 7%...of course "cash" is down like the dollar....plus bonds losses.

Egypt is at 52 week lows and Japan is near it's lows despite everyone thinking they are buys. Inflation is now (imagine that) headline news and people are complaining about high gas prices.

Globally, the single biggest issue with the US Dollar being diluted so much by poor fiscal policy is the fact that the US Dollar is no longer being viewed as the World's Reserve Currency. This is will be tomorrows headlines. It is a game changer. What will people/ investors do when they finally realize that their cash and bonds are destroying their savings??

They will buy silver, gold and stocks...especially in new emerging markets (creditor nations) and super blue chip stocks benefiting from the lower dollar and astute management. Small and Mid capitalized companies can't operate in this environment.

China does not worry about Afghanistan or Libya nor Iraq. They just go about their ways prioritizing their economy and future sovereignty.....we don't know what our priorities are...do you? Gold has gone up every hour since the Prez's speech past week.....he articulated..the elections are more important than fiscal policy....incredibly another two critical years are now lost. The smart money is voting/ moving with their feet....now much more quickly....the markets in general look to go "fast" soon.....time to put on the boot straps....

The markets next move will be counter intuitive.

Be sure to read all the Annual reports that come out this time of year....a lot of effort goes into them and they are current observations of the economy and the markets....most people do not read them.

So far this year, reports Bloomberg, there have been 6,961 deals/ acquisitions announced totaling $701 billion a 32% increase from the same period in 2010. Expect this pace to continue....cash is being put to work!

1st quarter oil imports to China rose 12% by volume and 39% by value. This important trend is well established.

We think we are now two years ahead of schedule....in terms of peak oil, commodities, bond market rolling over and inflation settling in....."The first effects of any inflation process is euphoria, because people go out and spend but later come the the costs of that policy." Said an Argentine businessman.

Danny Boy seen here knowing this is his last chance to cool off......the snow is almost gone for the season.