Salient to Investors:

Expect the market to consolidate before the next QE-driven euphoric market advance.

The market does not necessarily react immediately to liquidity-driven catalysts. Stocks traded higher for nine days after Lehman collapsed before the sell off began. Stocks initially trade lower once they receive QE from the Fed.

A slowing global economy, European crisis, unrest in the Middle East, a Presidential election, and a fiscal cliff all imply declining stock prices, but QE enables the stock market to rise in thin air, detached from all rationale. Economic fundamentals do not support stock prices anywhere near current levels.

Chinese stocks are attractive relative to US stocks.

Like commodity stocks.

Gold and silver stand to benefit most from more QE by the central banks.

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