Kip Herriage

I've been on the road for a while. A combination of exciting WMI business...next level stuff....to due diligence for WMI m2/m3 conferences, and of course for the VRA.

As I've been writing, Dow 10,000 was a certainty, and it doesn't look like this rally is close to being over. There is simply too much strength in the primary leadership....the techs and financials. How much higher can this rally take us? Quite possibly to 10500 or even 11000. Folks, with interest rates at essentially zero, and with the 30 year Treasury paying not even 4%, money managers around the globe MUST chase performance...or risk losing their jobs. On top of this, the next 5-6 months are historically the best time to be invested in stocks....in fact over 90% of all market gains occur during this time frame.

As I've been saying since the March lows, fighting the tape and fighting the FED is almost always a losing battle. This bear market rally is truly one for the record books, and it will end....but not for a while longer.

My best guess is that in the first half of 2010 we will begin to see the damage done by $100 trillion in debt, a crashing dollar, rising rates and inflation. We are in fact seeing the early stages of hyperinflation right now...and don't be surprised to see stocks continue to head higher even when interest rates begin to rise....stocks historically rally through the first 3 times that the FED raises interest rates. However, once rates once again begin to skyrocket (due to a crashing US$), our scary reality will begin to sink in.

Precious metals

Gold continues to make new all-time highs and silver is following closely behind it. Don't listen to those that say that they have moved too far too fast because this move has only just begun. We are headed to $2500 in gold sooner than just about anyone will believe...and it won't stop there.  

Continue to buy gold and silver coins and bars. Buy them every chance you get and don't concern yourself with the price you have to pay....these prices will be a bargain in the months and years to come.

I first recommended gold and silver in 2002 and I will likely be recommending it in 2012. Hyperinflation is going to change everything folks....its nothing short of the largest transfer of wealth in history. Unfortunately for those of us in the U.S., we will be the target of this once-in-a-century event.