I've been watching the markets lately and feel that reality is finally starting to set in. In a world where we saw an 80% rally off the lows, it felt like there was a disconnect between the euphoria of the markets and the realities on the ground. So, with a "correction" since April that continues on, I am expecting more of the same. Not that anything goes in a straight line, but to borrow from David Rosenberg, rallies at this point should be rented and not owned.
So, how am I approaching this? As mentioned before, I am a big proponent of gold. The only policy solution in place is money printing, and gold will benefit as the only monetary asset that can't be debased at the push of a button. Along those lines, stocks that would be perceived beneficiaries of money printing should also be considered - for me, selectively, businesses that deal in the precious metals space.
On a final note, Diego Forlan and Uruguay were eliminated from the World Cup today, leaving three teams who I don't really root for. I think Spain is the eventual victor.
Until next time.
