Friday, August 8, 2008

Taking Stock: As the Market Turns

Just in case anyone is wondering, the commodities rally is far from
done. First, I took a beating from the bear market, then the brutal
sell-a-thon in January, and now the commodities correction. I just
can't seem to win this year! UGH! One of my consolations during this
ordeal is the fact that I have been learning a considerable amount of
new things in the midst of my follies, and now another is that the
overall economy is beginning to improve in some areas (financials &
housing). The upside to the fall in oil prices is that it helps fuel
the economy. Although, cheaper oil is not here to stay. I'm heavily
invested in gold and commodities, but mostly gold because of the high
rate of inflation. Granted, gold has suffered a correction, but
inflation will resume because of low interest rates. I agree with some
of the authors of the articles that I have been reading lately, in
that the FOMC is not going to raise the Fed Funds rate anytime soon,
mostly because it could cause the mortgage rates to increase and
therefore hinder the decrease of housing inventories. In other words,
since gold is a hedge against inflation, gold and other precious
metals are not done going up either. Therefore, I'm weathering the
sell-off and keeping my positions. The Economy is a mess, but I see
hints of a turnaround in things such as the positive GDP and the
increase in home sales. I'm still a firm believer in that we are in
the tail-end of a sort of "soft" recession, and that we would have
been in much more trouble if it had not been for the growth in
emerging markets and namely China. China's economy is having a pause
because the Olympics are being hosted in Beijing, which is likely to
continue growing at a breakneck pace after the games have been

Wednesday, August 6, 2008

A Thought

Feeling Good <--> Looking Good

When you look good, you feel good. When you feel good, you look good.