Chasing Fractions Or Points?
CIGA Eric

Long-time bears and bulls were short pants will likely find the message from the markets a bitter pill to swallow this summer. This won’t be the first or last time this happens as we approach the major cycle dates in 2013 and 2014.

The long-term secular trends are NOT (emphasis here) extended.

Dow Jones Industrial Average (DJIA) and Z Scores of Secular Trends
^[1]

Meanwhile, the headlines focus on short-term noise. Those that follow headline explanations find themselves, more often than not, trying to profit from fractions rather than points.

Headline: Wall Street rises on China growth, Bernanke eyed

Wall Street rose after three days of losses on Wednesday on stronger-than-expected growth in China, but investors closely watched developments in Europe’s debt crisis that has weighed stocks recently.

Testimony from Federal Reserve Chairman Ben Bernanke shortly after the market opens will also be scrutinized for hints of possible new stimulus measures after June’s dismal U.S. employment report. The testimony to the House Financial Services Committee will begin at 10 a.m. (1400 GMT).

Optimism about the global economy gathered pace after data showed China’s economy grew faster than expected in the second quarter, easing fears about a hard landing in the world’s second-largest economy.

John Canally, investment strategist at
http://finance.yahoo.com/news/Stock-index-futures-point-to-rb-634282506.html?x=0&sec=topStories&pos=2&asset=&ccode=&sec=topStories&pos=1&asset=&ccode= ^[2]

More… ^[3]

Change Is Coming
CIGA Eric

Indeed scary stuff, Dennis, for all ages. This is why ignorance is bliss for many within United States.

Central governments have historically shown very little interest in doing anything that reduces their influence. Inflation, possibly defined as hyperinflation, is inevitable. The debt burden permits no other viable option than currency devaluation.

Individuals, cultures, and societies have survived hyperinflations across the globe for thousands of years. The individual spirit and the flexibility of cultures suggest we’ll all adapt to the coming change.

Adapt and prosper, however, are not necessarily interchangeable. Few prosper while most adapt.

There will be very few global safe havens when confidence breaks. Change is coming, and there’s nothing people can do other than learn/relearn to protect their interests against the transition that can no longer be stopped.

Eric

Looks like the rocket has really lifted off the pad today…soon to gather strength…probably next week. You do great work Eric and give me a sense of stability when things get edgy.

I had to laugh and cry at the same time when Congress wants to give Obama the right to raise the debt ceiling while Congress maybe thinks about reducing spending sometime in the future…if this actually happens I will join the hyper inflation people….Eric, can they be serious?

Which brings me to a question….is it possible to surive a hyper inflation and still remain in the US? I know some of my best friends just got back from Thailand and are going to move there in a year…they see what is coming to the US. How many really survived the hyperinflation in France or Germany? Did any of those that stayed there survive in tact? I don’t think so. Scary when you are 68.

More… ^[4]