This market has the same feeling it has had after the previous ten 5% declines. It just can’t be kept down. Money managers appear to be buying every single dip as they try to play catch-up in the remaining months of the year.
The gold/dollar conundrum is the most interesting action in the market as both rally higher. But this is a trend that cannot and will not last in the future. Unfortunately, with little to no sign of inflation on the horizon and a Fed that intends to destroy the Dollar, it’s hard to have long side conviction in either.
Readers and emailers appear to dislike the fact that I knocked the Buffett deal. I should note that it’s not that I dislike the deal or believe it will fail, but simply that the high valuation, stock deal is highly unusual for Buffett. It appears to deviate from his usual modus operandi. And the emailers who have implied that the Goldman deal was some stroke of brilliance must have forgotten that they were the ones who saved Buffett from a colossal mistake via their bailout.