This stock market has really been historical over the last 12 months. 2009 in and of itself has been quite a ride, but where does this leave us? The market has been stabilizing and trading in a range for two months. There may be a big move to the upside this Fall out in front of the heavy inflation to follow.
With the Fed in meetings the next two days, and fears of heavier inflation much greater than ever before, Bernanke and company find themselves in a very difficult spot and will have to tip toe around inflation fears and focus on their bigger fears of deflation.
I don’t think there is any clearer perspective as to why the Democrats run Washington, and the Republicans have become the party of loyal resistance than Health Care. With the Health Care debate really starting to heat up for the summer, President Obama is already starting to get the mud from both ends of the isle.
Last year when oil went to $147.00 barrel many people blamed the traders, but this was not the full story at all.
Oil and commodities started to become recognized as a new asset class by a lot of investors, and with all the new creative ETF’s in the world it became really easy for people that were looking for some diversification to get in on the action.
In one of my previous articles “The Art of Rebalancing”, I wrote all about the reasons why you should be rebalancing your portfolio on a regular basis. I wrote about what rebalancing is and when it should be done. The “how” is a little bit of a more complicated process to explain, but once you get the hang of it, it is an easy process.
