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What’s happening?

Markets are genuinely crazy at the moment.  Do you go where the government and bankers want you to go or do you fight the trend and get hit?

I don’t know the answer but I know the choices.

Gold and silver – smashed.  But premiums are rising on physical and the market is completely dislocated.   Will central banks lose control?  Don’t know.  But they will have to, if the prices are going to reach their natural levels.

House prices – crazy.  But governments keep pushing us to buy.  Do you?  In the US, probably YES.  In Australia – probably NO.  Look at yields and relative prices and that will give you the answer.

Stocks – insanely crazy.  Do you buy banks and go with the flow?  In my view probably yes.  The government will support them until they completely die.  When that happens it won’t be worth living.  So buy the banks, by all means.

Just don’t tell me this is a free market.

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