FORT LEE, N.J., April 16, 2009 /PRNewswire via COMTEX/ -- The National Inflation Association today released the following statement to its http://inflation.us members: "Today, hyperinflation is the last thing on most Americans' minds because they can't see it yet and they don't know it's coming.
Imagine taking a bottle and putting into it a bit of bacteria that you can only see under a microscope. Now let's say this bacteria doubled in size every minute and after 55 minutes, you still don't see any bacteria. But then, five minutes later or one hour since the bacteria started doubling, the entire bottle is full of bacteria.
Massive monetary inflation is already taking place today. Nobody can see it yet because temporary forces have pushed consumer good and commodity prices down, which has tricked economists into believing deflation is the real problem.
However, almost every action President Obama, Congress, and the Federal Reserve take every single day is sowing the seeds for hyperinflation. You need to invest today as if hyperinflation is already here, because once it arrives it will be too late.
People often ask us, how to invest in gold and how much gold is too much to have. There is no such thing as having too much gold. Although you should never put all your eggs in one basket, it is much better to have all of your money in gold than to have it all in U.S. dollars. The U.S. dollar will inevitably return to its true value, which is zero. Gold will always retain its value; unless huge new gold discoveries are made, which is very unlikely.
Many Americans are afraid to invest heavily into gold because of its volatility.
Today's volatility in gold is nothing but noise that should be ignored. Many short-term traders buy gold for the wrong reasons. They buy it as a safe haven from stocks, and when stocks rally they sell their gold to buy stocks.
Full Story: http://www.cnbc.com/id/30252116/
The rally gets the benefit of the doubt for now.
SO MANY OF US HAVE BEEN LOOKING THIS GIFT HORSE OF A RALLY in the mouth, we enter the weekend with the smell of nag's breath in our noses.
It isn't simply a lack of gratitude that is leading many investors to find flaws with the Dow's 25% run-up in the past six weeks. Many plainly wish this move to be another ill-fated bear-market triumph of hope over experience.
This is another way of saying lots of folks wish they had bought in, want prices to fall and hope that if stocks oblige by cracking lower, they will have the fortitude to be aggressive bidders.
If this widely shared sentiment is reason enough for the market not to stumble, other aspects of the rally leave us scratching our head. For one, many stocks have had a great year in the past six weeks, auguring a rest or retrenchment at minimum. The equal-weighted version of the Standard & Poor's 500 -- a proxy for the average big stock, represented by the Rydex Equal-Weight S&P 500 exchange-traded fund (ticker: RSP) -- is up 40% since mid-March. The straight indexes to date have outperformed every lift-off rally that came after a major bear-market low. So even if March 6 represented a decisive low, which is unknowable now, this move has gotten awfully far, very fast.
Under the surface, this rally has been driven not so much by economic stabilization or banks' revival or government stimulus, or even short-covering, but the surge in buying of extremely low-priced stocks. So conclude quantitative strategists such as Matthew Rothman of Barclays Capital, who notes that in March stocks under $5 essentially doubled in price.
Rich Repetto, analyst at Sandler O'Neill, calculates that in March the five most active stocks on the NYSE had a volume-weighted average price near $5 and accounted for 25% of all volume, compared with 8% of volume and an average price close to $20 a year earlier.
Online-broker customer volumes were up around 15% last month. The Direxion Financials 3X Bull ETF (FAS), which delivers triple the daily move in the Russell 1000 financial sector, began trading 300,000,000 shares a day and more as the rally got underway.