Monday, January 23, 2017

Market Sentiment - Extreme optimism on stocks and pessimism on Bonds

If you look at the valuation of stocks, they’re high. If you look at the valuation of the U.S. dollar, it is high.

There is a lot of liquidity in the world and I believe that whatever you think, the liquidity will move into precious metals and precious metal stocks in the next three to six months. So I would be long gold shares, silver shares, platinum shares and their underlying. I also think the sentiment is much too optimistic about stocks and far too pessimistic in bonds. I would buy as a trade Treasury Bonds in the US.