November 15th Market Update – Same old, same old, no surprises

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-Tame inflation data and positive Fed spin are supporting all asset markets. Strong dollar helping to keep import prices moving lower.
-The dollar looks firm, considering the massive monetary stimulus. What will happen when the ECB needs to crank it up? This isn’t monetary printing in the true sense, as the offsetting debt needs to be serviced, and the debt slaves who do not own income-generating assets are servicing it all.
-My theorized short-term pullback never materialized as stocks move higher and bond yields stay below 1.95% support (for bond prices).
-Gold looking anemic and cannot get legs. Let’s see the data this weekend. The markets and Fed dispelling catastrophe concerns keep it under lock and key.
-Housing still strong. Look at the Amazon effect in Northern VA. Arlington County list prices up 33% since the Amazon announcement. The entire DC area market is on fire. (I have a number of DC-area subscribers). I always said that DC real estate was a relative bargain and now the prices have begun to reflect that reality.
Wealthier investors are big into cash, since they are worried about market catastrophe. They must be listening to the alt-financial media about a stock crash.  As long as this is the case, I will take the contra.
The Fed comes out with their Financial Stability Report and they think things are just fine.

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