Classic Market Actions

Over a year ago...the bond market made it's high.....but some 1.2 years later.....14 months from its top.....more people lost money in bonds in June than in recent memory (remember memories are short)....The bond market (interest rates) has finally nailed all those folks who thought interest rates would stay low forever....now investors will fight the tape for years still in denial.

Gold is now going up again ...just when everyone said it was going to go lower forever...and was "worthless"....hummm

Apple Computer made a new 52 week low right on the quarter end last week....nobody wanted to show owning it in their portfolios for the ytd performance summaries....of course Apple is the best performing tech stock today.

A lot of very smart folks are trying to call a top in the general stock market. Only a few broker dealers are saying no way.....the market will go higher for years to come.

We remain in the middle.....we know our deep value stocks and inflation oriented product offerings or equity book valued stocks are inexpensive....and we will be rewarded regardless of interest rates or non political leadership.....especially over bonds.

As the west coast is hot...very hot...the most important subject not talked about is the lack of water and extreme drought building in the south west...what options do those folks have??

As the investor class has walked away from the "China Story" it is interesting to note the Japanese stock market is worth four times more than the mainland China stock market...so one needs to monitor the Tokyo Stock exchange more closely.....their grand experiment is coming the America soon...and with it's failure or success! Yes, the American stock market is worth seven times more than Japan's.

How can this countries largest coal miner be valued below book and most gold miners too below book when gold sells below production costs....

The summer is just 1/3 over and far too much horse trading is going on....time to step aside for a bit....and let the markets sort these distortions out.

Danny Boy seen here is glowing.