My View...

Stocks in a bear market? Agreed. No-brainer. I think it stays weak for while - probably into the election which may resolve some of the uncertainties. Long term outlook is we are in a wave A on a weekly chart of an ABC correction in a longer term bull market. In the meantime we are in a bear market and should see a low shortley with a choppy dead cat bounce into the spring. That's when the next leg down really gets going. I expect the Dow to crawl up to a %50 retracement of the drop from 14000. That would be wave B. The C wave down will be at least as significant as the drop from the 14K top. So if it crawls back up to 10-11000 in the Dow the subsequent C wave will be signalling a major depression. That's a technical look at the Dow based on Elliott wave theory.

The dollar is in overbought territory here technically looking at the stochastics. It's nearing a weekly high so it could be a good time for the gold bulls to get back on board again. The shake-out in hedge funds is taking the air out. But more life should come back.

As for the the statement regarding the real estate bubble - "When it finally bursts" it makes me wonder when this was written? the bubble burst already! As the US economy tanks so too will foreign stocks. This meltdown is global and we should not expect much in the way of 'safe havens' for capital. Take a look at the middle eastern markets today. Puke-ola! Ouch!

I believe that gold will make a comeback and it could go much much higher from here. It's why it will be a great trading opportunity. Don't discount silver either. I believe trading silver contracts will be highly profitable. My first target for silver is 15.

I heard from an investor friend over the weekend that this house of cards in the banking industry may reach as far as Switzerland. Yes,that inpenetrable fortress of solidity and safety! Even the greedy banks in Switzerland have overleveraged themselves and are entangled in this mess. Watch out if that happens.