Well, well, what do you know? Both ECB and BOE are now signalling more QE. Euro and Pound is now plunging while gold and silver rise. Silver especially has risen over US$1 per oz in less than a week.
Best to stay off US stocks except mining companies.
The rally in US stocks has been supported by the Plunge Protection Team and even more buybacks by the banks in low volume trade. The valuation of the S&P is not justifiable.
Pretty soon the Fed will also ease and we have the precious metals move several legs up. Is it too late now to buy precious metals? No it's not. You should own precious metals, mining companies and related ETFs before gold pushes past US$1,400 and silver US$20 per oz, because after that the amount of gains will be fast and you would have missed out entering at an affordable range.
You may also like to consider exiting the ETFs which short the indices as more QE signals a bullish market - as an initial reaction. But the market will still crash further down the road due to recession in earnings, more debt driven asset bubbles and QE failure. QE is NEVER a solution. It is just a way to kick the can further down the road until the responsibility passes on to another.
As the market push towards an unsustainable peak, you may want buy back the inverse ETFs.
I continue to be long in precious metals, mining stocks and related ETFs and have a buy position in Bitcoin which production is due to halve in mid July. This will create and environment where demand will be more than supply. Still, Bitcoin is a risky investment and you should only do so with awareness of the risks.
Remember, always do your own research as our risk appetite differs.
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