Before I get in trouble - I want to make it crystal clear that
I don't have a letter from Federal Reserve Chairman Ben Bernanke.
What I do have is the letter that I would need to see him
write in order to convince me to sell my gold and silver and hold dollars
instead.
Seeing this letter is not the only condition under which I
would sell my precious metals, of course, but since Bernanke is the dollar's
Commander in Chief, he certainly has the sway to pursue the types of policies
that would turn me dollar bullish.
Without further ado, here's the letter I'm waiting
for:
Yesterday, buyers mustered the strength to build on
Wednesday's strong rally. In fact, the bulls pushed the S&P 500 above a
key resistance point at 1,085.
I've talked at length about how pessimism was at an extreme
and a bounce for stocks looked likely. Recent economic data has been good
enough to support the notion of an economic recovery, and while not setting
records, it is at least strong enough to avoid a double-dip of
recession.
Most of the recent data was in line with expectations:
factory orders were up 0.1%, productivity was down 1.8% and labor costs were
up 1.1%. However, Wednesday's strong new home sales for July (up 5.2% when a
loss was expected) was probably the single most important data point.
I know - I'm supposed to talk about gold or oil or coal
again today. That's what you were promised as a reader of this
publication.
Ihope you'll
forgive me, but today's missive has little to do with commodities.
I read an article that just can not go unmentioned. It's
either the funniest and best written nod to George Orwell I've ever seen, or
it's a frightening representation of the world we live in.
Before I go on, you should take a look for yourself - it
truly must be seen to be believed.
"Extreme pessimism? Let me introduce you to slightly
improved economic data."
I believe that pretty much sums up yesterday's powerful move
higher.
Manufacturing data came in better than expected. Along with
Tuesday's improved consumer confidence number and good news from emerging
markets, it was enough to offset a disappointing early read on employment
fromADP.
Wyatt Investment Research was founded in 2001 as an investment research focused publisher of information for active individual investors. The company offers independent research and analysis of the financial markets, stocks, bonds, ETFs, and mutual funds to +250,000 individual investors through a variety of investment newsletters, trading alert services, and e-letters.
The Small-Cap Investor
The Small-Cap Investor
Secrets to Winning Big with Small Cap Stocks
by Ian Wyatt
Ian has discovered over the years that small-cap stocks can provide the
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lack of analyst coverage and institutional ownership.
