Victor Riesco

It is evident by now that most governments and politicians are not concerned with sound economic principles, are not interested in maintaining the value of their currencies, and don’t consider the indirect consequences of their intervention.

Keep an eye on the Investors Intelligence Advisory Sentiment. Once we reach 60 percent bulls and you start hearing about a Goldilocks economy and economic nirvana, then it’s time to start worrying and cash out.

The dollar will keep falling toward new, historic lows, commodities will rally, and stocks will rise, with emerging markets outperforming. Even though economic data and conditions continue to deteriorate, equity and commodity markets can keep their upwards trends thanks to the continued market intervention and aggressive monetary policies of governments and central bankers worldwide.

I don’t see a durable recovery and this nascent bull market won’t as long as the one experienced from 2003 to 2007. I’m certain that in the future we will face harsh economic problems once again. Despite my bearishness on the economy, the technicals are strong and the trend is up. The trend is your friend and until proven wrong, buying the dips is the way you can currently make money investing.