The Average Investor's Blog

A software developer view on the markets

The Weekly Update

Posted by The Average Investor on Apr 30, 2011

All is good in the world markets. Last week most indexes surpassed their recent heights thus confirming the upwards trend.

Asset Symbol Position Date In Gain
US REIT VNQ Long 2010-07-23 23.81%
S&P 500 ^GSPC Long 2010-09-30 19.49%
Emerging Markets EEM Long 2011-03-25 5.62%
Nasdaq 100 ^NDX Long 2011-03-25 3.79%

One can’t help but notice the advance of anything in dollar terms. Most currencies, most socks, most commodities, etc. Right or wrong, I do see a trend – all currencies are losing their value (buying power for real stuff), the worst among the bad being the US dollar. So we have replaced deflation in nominal terms with inflation. Right now we see the inflation only in non-Fed watched goods, but I bet, it’s coming to the US (it is already roaring around the world).

Make no mistake, in real terms there is no difference – the large middle class who has mostly nothing (but debt) is again being financed by the people who did nothing wrong and lived within their means. So much about the great society we have build.

In real terms however the story is quite different. Ignoring the details I mentioned above, we have avoided the Great Depression, we have broken the neck of deflation which devastated the world in the 30s, we are back to business as usual. Big political success!

Only time will tell, but I promise to keep the political and fundamental rants on this blog to a minimum – this blog is all about technical trading and investing. Nothing else. I guess it’s the election bug that got me …

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