With the Obama administration and most of mainstream media singing the praises of a recovery that is really nothing more than governments around the globe throwing unsustainable amounts of “stimulus” money at various problems, I am wondering when the global imbalances finally start to matter.

Was today the day?

Here are some charts to consider.

Gold Up, Silver and Nonprecious Metals Down

Energy Sector Down

Financials Up

US Dollar, Yen Rally

European Equities Hammered

Asian Equities Down, China Leads the Way

US Equities Down


Today’s action is certainly a flight to safety phenomenon with gold, US treasuries, and the US dollar all rallying strongly with nearly everything else selling off.

Silver is primarily an industrial metal, while gold is best viewed as money or a currency. Moreover the entire energy complex took a hit.

Another One Day Wonder?

Inquiring minds are no doubt asking if this is another one day wonder, buy the dip decline, or the start of something far more serious.

I do not know nor does anyone else. What I do know is risk is high, risk-reward is skewed to the downside, and if this recovery was real it would show in housing, jobs, and termination of global stimulus plans.

Instead housing is in the dumps, the official unemployment rate is near 10%, and in spite of massive property bubbles in China, the China Business Newspaper says Another $586 billion “Stimulus” Coming to China.

Meanwhile, Ken Fisher is a huge fan of emerging markets and tells the bears to “Get In Before It’s Too Late“.

Get in before it’s too late?!

Flashback: December 13, 2005: It’s Too Late

I think it’s too late.
In fact I know it’s too late.
How do I know?
The following Email I received tonight should explain it nicely.
When you see stuff like this, not only is it too late, it’s way too late.

Did Ken Fisher just ring the bell?
Time will tell.

Mike “Mish” Shedlock
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