Even with the holiday week (including today's half session), there was some interesting movement in the markets.  The US Dollar was much stronger, due to the insolvency issues in Europe, yet commodities were still very firm.  This is rather ominous for inflation.

The stock market still feels like it's poised for a sharp drop, but the Fed will be injecting approx. 35 billion dollars of monetization in the coming week.  The problem is that, with so many holes in the global capital structure, even 35 billion may not go nearly far enough to keep propping up stocks.

The current state of our fund battle:

The Wealth Fund is back up about 2% over the Investment Fund.  Also, the spread between consumable commodities and precious metals has come in a fair bit.  Both these movements are what we should expect over the longer term, although there is a chance that silver outperforms drastically, due to ongoing supply/demand issues.  For those with limited wealth to preserve (or those who are willing to accept the increased risk of non-diversification), silver is likely to be the best place to keep it for a while.

No changes to the Bonehead Ben Bernanke betting game.  See last week's post for odds.  I hope everyone is having a good Thanksgiving holiday.

Posted by: Hermit Dave at 11:13 AM | No Comments | Add Comment
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