market ace

Closing Update for Tuesday, Sept. 22: Watching Commodities and the FOMC

It is nice to report that the market is up, commodities are up and even housing prices are up, but when it is mostly the result of a fast falling dollar a little more worry should be in order here.

Just maybe our decent into a banana republic should not be seen through such rose colored glasses. The value of a country's currency is like the value of its "stock" and the US $FRN is dropping like a rock and has been for months now.

Soon most Americans and especially retirees will be paying a terrible price for this exciting ride to nowhere in the markets. Anyone not holding inflation hedges at this point will be hurt badly.The only thing that counts is the remaining purchasing power of our remaining assets as that is the only true measure of wealth. Even if the DOW hits 25,000 it does not necessarily mean anything good has happened, especially if the dollar has sunk another 50% and Bernanke has pritnted trillions more of them to force it to get there.

Just keep dividing your total net asset value by the price of gold to tell if your are truly winning or losing in this crazy new world we live in now.