Split between “Real” and “Asset” Economies Never More Clear Than Now

Many average investors like to think that the performance of the STOCK market is closely tied to the underlying ECONOMY. And in most normal times, that’s true. But the current market environment is anything but normal. I say that because we’re in the midst of yet another round of money-printing-driven action. The fingerprints are everywhere … Super-low volume rallies in stocks. Levitation in gold. A slump in the euro first, driven by the European Central Bank’s backdoor money-printing LTRO program, followed by a slump in the dollar, driven by more dovish talk out of the U.S. Federal Reserve. All these clues tell me that the “asset” economy is floating on a sea of liquidity … for . . . → Read More: Split between “Real” and “Asset” Economies Never More Clear Than Now