Jackson Hole: make or break for the markets

Positive action will send the S&P500 skywards as the markets would delight in another boost to the money supply. Investors, speculators, traders and fund managers alike will be glued to their flat screens at the end of August, hanging onto every word that the Chairman Ben Bernanke utters. They will be looking for some positive action on behalf of the Fed in terms monetary stimulus or Quantitative Easing Part Three. Every angle, inference, real or perceived meaning, will be analyzed to the fullest extent with the view to positioning ones portfolio accordingly. Positive action will send the S&P500 skywards as the markets would delight in another boost to the money supply, some of which must surely find its way to the stock exchange. Happy days would indeed be here again, even if only for short while. You will note that in the last month or so the markets have rallied possibly more in anticipation of whats to come than by any signs of an economic revival. Monetary stimulus would not only boost the stock market it would also send our two favourite investment vehicles, gold and silver into rally mode with gold prices hitting all time highs by the end of the year. Continue reading this article

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