Seeking Advice

Thursday Outlook: Commodities, Global Markets

Really sems hard to know how to invest right now, Dave. I do believe that we're seeing an equity bubble. And it seems that the Government is purposely fostering it as a way to increase confidence and allow the big banks to increase their value. The government is devaluing the dollar which makes all comodities rise and the zero interest rates make it impossible to get any return on cash. Hence, the tendency for money to find its way to riskier assets like equities as everyone searches for a way to get some kind of return. It seems so simple in way, though it's not.

As a flexible buy-and-holder, I've been sliding up and down on my equity exposure based on apparent risks (which seem high). And while my exposure is lower for sure, fortunately I have not sold off so I've floated along with the rising equity tide. I keep asking myself how long things can continue and then remind myself that the market can stay irrational for a long time, especially if conditions are pressuring it in that direction. I'll keep reading you're comments as part of how I try to stay informed.