Sooner or later, markets change - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 26 August 2013
Sooner or later, markets change A  A  A

Baltimore, Maryland

There are a few yellow leaves on the trees. The mornings are cool.

"Yeah, and my son started school last week."

"What? Seems awful early for public school."

"They've been moving it forward. Back in the old days the kids helped on the farm with the harvest. School didn't start around here until about the 7th or 8th of September. And we got to go 2 weeks later because we lived on a farm.

"Now nobody does that anymore. I don't know what young people do. Nothing, I guess. That's why they start school earlier."

Our own son Edward headed back to college on Sunday. He goes to school in New England and takes the train - the Vermonter - from Baltimore's Union Station.

It seemed early to be sending him off too.

But the earth turns. And the days grow shorter and cooler. And investors begin to feel the chill wind.

So far, only metaphorically. Later, they will feel the icy winds blowing around the corner of Broad and Wall Streets in New York...or over their own hills and dales. And they will wonder...

---------------------------- Lifetime Access to 4 of our top services... (Closing tomorrow) ----------------------------

As we already told you, Equitymaster's Wealth Alliance let's you get our 4 best research services for a one-time joining fee... and then an unbelievably small annual maintenance fee every year after that.

We've done a complete comparison of costs and the HUGE savings for you in the letter below.

However, the registrations to this membership are closing shortly on 27th August. So you have to sign up quickly to avoid missing out!

Given that we have a 30-day, FULL refund guarantee on Equitymaster's Wealth Alliance, you have absolutely no reason to hesitate.

Click here for full details...


...what's a share in a company really worth? What's a bond worth? Heck, what's the dollar itself worth?

All of these questions will draw the same reply: it depends.

Among the things it depends on is the "trust" in the its its capital structure...and in its future.

When the sun is shining, it's easy to have trust in a society. It's when the chilly winds blow that the question marks begin to fly. You see them picked up by the gusts of wind like plastic bags...floating around until they are snagged on some barren tree.

That's when it gets interesting...when the hopes and hallucinations that undergirded the boom give way. Markets are cyclical. Sooner or later, whether we like it or not, they change. And our guess is that investors are about to go back to school, where they will learn that all three major markets - debt, equities, gold - have changed direction recently. Gold is now headed back up. Stocks are completing a huge, rounded top. And bonds have already begun to fall.

The Fed spoke like a climatologist last week. Maybe the earth will begin cooling off, it said. Then again, maybe it wouldn't.

It said it was still considering tapering off. But it also reminded us that it would only do so if and when it felt like it was kinda a good idea which probably wouldn't be any time soon.

Stocks rose on Friday...barely. Gold, though, got some exercise - up $25 to bring it within a few dollars of $1,400.

How about that gold? Just when you thought it was comes back strong.

What will it do when winter comes and the warm light of trust fades away?

To be continued...

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Get The Daily Reckoning directly
in your mail box.
Just enter your e-mail address » 

Read our Privacy Policy and Terms Of Use.

Equitymaster requests your view! Post a comment on "Sooner or later, markets change". Click here!


Recent Articles:
Mr Trump Has Been Broken
August 24, 2017
Kelly, Mattis, McMaster, Cohn, and Mnuchin are in charge. But these Pentagon bureaucrats and Wall Street hustlers may be worse than a loose-cannon president.
Deep State First
August 23, 2017
Nowhere was the darkness deeper than in the nation's capital. There, no light shone. No flicker of awareness...observation...learning...or reflection appeared.
A Darkness Is Spreading Across the US
August 22, 2017
Today, we are attacked by one preposterous thing after another, each of them even more absurd than the last.
Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working
August 21, 2017
Most Indians who cannot find jobs, look at becoming self-employed.