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By Paul B. Farrell, MarketWatch
Jan. 12, 2010, 12:01 a.m. EST
The good news: Six buys for 2010
5. Buy the U. S. dollar. Despite drawbacks, "the dollar remains the world's reserve currency and safe haven, regardless of suggestions by the Chinese and others that the dollar should eventually be replaced by a global currency." How about gold? Fuggetaboutit. Never. "The recent strength in gold prices suggests that many investors distrust all currencies." But "the supply of gold is far too small, even at current prices, to again serve as money. Gold in private and government hands is worth about $5 trillion compared to global M3 money supply of $60 trillion. Gold would have to sell at $32,128 per ounce, vs. $1,097 at present, to replace the M2 money supply dollar-for-dollar."
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Jan. 12, 2010, 12:01 a.m. EST
ARROYO GRANDE, Calif. (MarketWatch) -- Yes, Dow 15,000: Jeffrey and Yale Hirsch's "Stock Trader's Almanac 2010," the bible of market cycles history, sees a possible 50% gain from 2010 lows to a mind-blowing 2011 high. Others like Wharton economist Jeremy Siegel and former Value Line guru Sam Eisenstadt are predicting 10% to 20% gains for 2010. All great news. Unless of course you're a conservative.
Why? Because a smoking hot market topping 15,000 would guarantee Obama a second term, add to his Congressional majority, and open a whole new front in America's polarized cultural wars, with enormous market, financial and economic as well as political consequences.
Why? Because a smoking hot market topping 15,000 would guarantee Obama a second term, add to his Congressional majority, and open a whole new front in America's polarized cultural wars, with enormous market, financial and economic as well as political consequences.
The good news: Six buys for 2010
5. Buy the U. S. dollar. Despite drawbacks, "the dollar remains the world's reserve currency and safe haven, regardless of suggestions by the Chinese and others that the dollar should eventually be replaced by a global currency." How about gold? Fuggetaboutit. Never. "The recent strength in gold prices suggests that many investors distrust all currencies." But "the supply of gold is far too small, even at current prices, to again serve as money. Gold in private and government hands is worth about $5 trillion compared to global M3 money supply of $60 trillion. Gold would have to sell at $32,128 per ounce, vs. $1,097 at present, to replace the M2 money supply dollar-for-dollar."
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