Excess liquidity is causing people to get overly excited and bullish about different areas of the markets.
The risk is that people tend to get bullish after weeks and weeks of the rally have gone by and they end up buying at a top.
For the most part, liquidity is flowing into the energy sector. I think oil is going to 200 or $250, but there's going to be some corrections along the way. People are also becoming over-the-top bullish on uranium.
Even though the correction in gold has been very mild, because it's gone on for so long, sentiment has become bearish. People think it will never rally. Too many months have passed with frustration after frustration due to a long stretch of trading sideways.
When gold's correction or consolidation is done, gold's going to break out above all-time highs.
Gary Savage is a 57-year-old retired entrepreneur living in Las Vegas. He has been investing in stocks and commodities for 15+ years. He is a self-made multi-millionaire and attributes his financial success to savvy investments made in owning/selling several businesses, real estate, and, more recently, the stock market. He is also an Olympic weightlifting champion, and world record holder. Gary’s stock market investment philosophy and success owes to an unusually disciplined and keen understanding of market cycles combined with cutting edge sentiment data which allows him to anticipate and articulate how larger trends are likely to unfold. His analysis is almost always in strong contrast to what the public is thinking – and, provocatively, several steps ahead of the crowd. Gary’s renown as a recognized trading/investment expert in the areas of precious metals, stock market, oil and currency markets is demonstrated by his numerous internationally published articles in these market areas. Gary publishes the Smart Money Tracker, a market newsletter available online by subscription only, and also the SMT free blog.
