Despite flagrant technical discrepancies, the markets are following the lead of the Fed, and it appears that as long as the Fed pours on the QE, the stock markets will follow. In the meantime, gold continues its climb out of its huge base formation. As I see it, as far as holding stocks or gold, the greater risk lies in stocks.
From the Kiplinger letter:
China is boosting its foreign investment. It will ladle out $1 trillion over the next decade. And increasingly, it has its eye on the US. By 2023... $15 billion to $20 billion a year to snap up American assets. And that’s in addition to whatever US treasuries China continues to buy. Beijing already holds nearly $1.3 trillion of them.
There are 2 million reasons for this surge: China’s $4 trillion foreign currency stash ... euros, pounds, yen, dollars and more ... racked up over decades of exporting ... Log in or subscribe to continue reading.
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