Dear Members,
This week’s newsletter will be not detail one, I went to drop my daughter to collage and I am on the way to Santa Barbara and unpleasant news came about my Grandmother, she ended her life journey and departed for good. I have to fly to India so I will keep this newsletter small, but I will try to cover all the areas briefly. In our Hindu tradition we don’t work for 11 days but I will break this rule and write a brief newsletter here.
The European financial crisis has been getting more attention now, it looks like EU policy markers, financial authorities and bankers are rushing now and looking for an immediate solution. I still call this crisis ‘self created’, Mr. Tichret is to be blamed as he behaved very arrogantly during the last two years, earlier this year he raised rates when Greece, Spain, Ireland and Italy’s debt crisis was on the head. The Tichret policy was very simple and that was keeping Euro higher and remaining pro-Euro. His actions have done too much damage and more is on the way. Anyway, the future of the Euro zone and Euro look ugly, I don’t recommend holding onto euro as euro is heading towards a par value in the medium term.
Once again believe Barnanke is doing great job, he is going to put USA on the right path, and that is the reason we see Dow reaching 32,000 in three years and 13,500 by end of this year, so almost a 2,000 point rally will be seen in the next three months.
Here is a brief out on all major markets:
Gold/silver...