My humble view on things is as follows

The right people have made some money and have now gotten out of the market by selling their large positions to the general public who bought the “green shoots” theory and didnt want to miss out on the recovery.

The US will now stop their propping up of the markets and let them fall thus creating a demand for the “safety” of the dollar and US treasuries and will allow them to continue financing their excessive policies and wars for the time being. This will also correct the price of gold down in the short term as people regard that as a risky asset for whatever reason.

In the meantime, small European countries will go into sovereign default and this will lead eventually to the probable default of Japan. At which point all eyes will turn to the US and UK etc and there will be a mad dash for the door - out of the dollar and US treasuries and into gold.

Please do reply with your views and lets get a good discussion going…

- davies

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