Americans are clearly unhappy with the slate of candidates the two major parties and the news media have shoved in their faces fifteen months ahead of the election. Nor, evidently, do they trust that the economy is nearly as robust as the spinmeisters and Fed shills would have us believe. They undoubtedly understand at a gut level that the supposed recover is a fraud, one bought with massive new debt and which at this point rests solely on inflated stock prices and real estate valuations. A bear market would quickly destroy the delicate illusion, one that the Fed has worked tireless to sustain. It could happen literally overnight, with a 1000-point drop in the Dow for some reason that none of us can imagine right now. In fact, we believe the bear market has already begun, corroborated by a top in the NYSE advance/decline line in late April. Time will tell, and the wait may not be long. Click here for a free trial subscription to Rick’s Picks, along with access to a report that explains why we are as bullish on T-Bonds as ever.
