It Goes On

by JDH on February 8, 2014

In three words I can sum up everything I’ve learned about life: it goes on.

– Robert Frost

And so it does.

The winter Olympics have started, I’m told.  I haven’t watched any of it, but I understand the cost of the Olympics in Sochi will be something in the range of $50 billion.  Apparently they had to build a highway from one venue to another, and that highway will cost more than the last winter Olympics in Vancouver in 2010.  Sochi is a sub-tropical climate, with palm trees, so it would appear to be a silly place to hold the winter Olympics, but if you’ve got $50 billion to burn, you can do as you wish.

Kinda like the Fed, who has $65 billion, or more, to burn every month keeping the market inflated.

It works for a while, but then the cracks start to show.

The DOW managed a half percentage point gain this week, and the S&P 500 was up .80%, but the DOW remains down almost 5% on the year, and the S&P 500 is down just under 3% since New Years’ Day.  The money printing has lost some steam this year.

Gold, on the other hand, gained 1.81% this week, and is up 5.38% on the year, so it would appear, in the short term, that some funds are finding their way into the asset that can’t be printed.

Or not.

I still expect the stock market to have a final blow off rally, and I still expect gold to test its lows before roaring upwards.

Why?

Because life goes on.  That’s just the way it is.

I will not bore you with needless ramblings this week, because that’s all I have to say on the matter.

It goes on.

Until next week, at least.