How Do You Know When You're in a Bubble? (AAPL)
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Negative news, geopolitical risk... what can stop the markets from their seemingly sugar-fueled, all-out ascent upward?
Conflict in Egypt, leading to overthrow of a thirty-year regime? Nope.
That conflict spreading to Libya, an OPEC member and one of the world's top oil-producing nations? Nope.
Deadly earthquakes and flooding in Japan, causing billions in damages and the loss of numerous lives? Nope.
National health care? Nope.
An unemployment rate that has moved only modestly lower over the last 24 months? Nope.
Home prices that have plummeted over the last four years, seeing only a little bit of positive gains through the first part of 2010? Nope.
Massive oil spill, costing thousands of jobs, economic despair, and ecological disaster? Possibly a little bit.
Time Warner canning Charlie Sheen? Definitely no.
Is the only catalyst left to take down the market potential exit as CEO by Apple's (Nasdaq: AAPL) Steve Jobs?
So are we in a bubble? The Dow Jones Industrial Average doubled from lows in the 6,000s to being now over the 12K mark, rather rapidly considering that it took roughly eight years for the DJIA to make it from 10K (originally) to just over 14K, a much smoother line.
With the Fed pumping money into the system in record amounts, gold seems to be the best tell.
Gold , which is near record levels, is telling you that while stocks are going up and it feels good, don't be mislead... you may not be any richer.
Stocks and other assets can continue to go higher as the value of the currency is debased. In essence a split of the dollar... $2 today was $1 yesterday... and so on.
Conflict in Egypt, leading to overthrow of a thirty-year regime? Nope.
That conflict spreading to Libya, an OPEC member and one of the world's top oil-producing nations? Nope.
Deadly earthquakes and flooding in Japan, causing billions in damages and the loss of numerous lives? Nope.
National health care? Nope.
An unemployment rate that has moved only modestly lower over the last 24 months? Nope.
Home prices that have plummeted over the last four years, seeing only a little bit of positive gains through the first part of 2010? Nope.
Massive oil spill, costing thousands of jobs, economic despair, and ecological disaster? Possibly a little bit.
Time Warner canning Charlie Sheen? Definitely no.
Is the only catalyst left to take down the market potential exit as CEO by Apple's (Nasdaq: AAPL) Steve Jobs?
So are we in a bubble? The Dow Jones Industrial Average doubled from lows in the 6,000s to being now over the 12K mark, rather rapidly considering that it took roughly eight years for the DJIA to make it from 10K (originally) to just over 14K, a much smoother line.
With the Fed pumping money into the system in record amounts, gold seems to be the best tell.
Gold , which is near record levels, is telling you that while stocks are going up and it feels good, don't be mislead... you may not be any richer.
Stocks and other assets can continue to go higher as the value of the currency is debased. In essence a split of the dollar... $2 today was $1 yesterday... and so on.
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