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It’s all about Timing

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COMMENT: 

Hello Martin

This will be interesting - stock market UP / economy Down / bonds down / real estate Up / dollar Up Up / taxes Up / gold Down / civil unrest Up / weather cycle - unstable

Wow only a computer could generate this outcome...

ANSWER: Absolutely. The most interesting aspect of the markets that the computer has taught me is that capital (people) move not on the news, but on anticipation, and always each to his own. I mentioned before, and some questioned it, but real estate I said would start to rise when interest rates rose. Immediately some said I was nuts. But people hold back when they see rates declining. They do not rush in to buy. As soon as rates start to rise, they assume it will now cost more to wait so they rush out and buy. The average person is nowhere as stupid as the talking heads. You need RISING interest rate to get the ball rolling – not perpetually declining rates. Inflation will be on the horizon at last. We still have to get past this Eurozone crisis in September. Then capital will begin to make its decisions. Everything in due time – it is all about timing.