The world is shaking
I recommended an article about a month ago, explaining how storms generally whither. They don’t just stop. This was going back to right after the Israeli/Lebanese War. With Oil at $78 a Barrel Investors were scramming for options. But then all went shockingly quiet. I think that quiet is leaving as fast as it came.

* 12 Sites in UK found with radiation exposure (This whole story regarding Russia has really got me thinking about what’s really going on there). The Russia-Iran relations has gotten many people thinking.

* Politicians from both sides are asking Bush to take our troops out of Iraq to avoid conflict in what is already perceived as a civil war. Saudi Arabia has already vowed to defend the Sunnis if the US troops leave.

* The recent assassination of a Lebanese politician has set of a wave of protest in Lebanon. Many think that this too could escalate into a civil war.

* The cease-fire between Israel and Gaza (as well as between the Lebanese) is holding by a string. Any feared behavior can send them straight back into all out war.

* Iran, Syria and North Korea – no comment.

* The Dollar has plunged to lows unseen in 14 years. No surprise coming only days after China, as well as many other Central Banks, announced that they may be diversifying their US currency holdings.

* The Housing market is finally beginning to cave in as we saw evidence of the huge inventory rise in sales albeit by a small margin. This was naturally coupled by a record loss in housing prices.

* Inflation is seen picking up speed at 2.4%, which is slightly higher than the 2% cap the Fed is comfortable with.

* Manufacturing is slowing, but this is all old news in relation to the recession in the auto industry.

* Gold and precious metals have surged in the past few weeks. A sure sign of economic and geopolitical uncertainty.

* The Dow has pierced ever increasing all-time highs, and is beginning to show some resistance. It seems that this Bull has run its course. Higher? Maybe, but the margin is definitely to the negative.

* Don’t even mention the Credit and Derivatives markets. Billions is no longer in the equation. were talking a half on a quadrillion dollars! 480 Trillion. 10 times the US economy. To say that can cause a serious shake up is an understatement. I don’t know much about the sector but I would strongly speculate that many will rake in fortunes while others will be completely wiped out. Futures have dates. and when those dates expire, you either won or lost.

* AND coupled with all the excitement sentimental indicators show record low volatility and high optimism for the future of equities. It seems that investors and speculators alike have forgotten all fears.

“Be fearful when others are greedy, and greedy when others are fearful”

Good luck and have fun investing! And remember, hard-assets no market can take away from you.

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