Simply put, #silver is more volatile. Also silver is more a commodity than #gold which is more a store of value play. Commodities are heading higher even though it seems like the price increases can't be easily passed onto consumers, thus the weak corporate profits. If oil joins in on the #commodities price rise the #Fed may get what it wants, inflation exceeding US growth which will not stimulate the economy as the Fed chairwoman is implying. Quite the reverse.

Thanks for the chart. The market is on a short term rally. Then I think it will slide back into the trading range again when people figure out that the next worry is the gradual rise in commodities pricing which is good in the fact it causes inflation (the central banks say they love it but shouldn't want it). Given the fact corporate profits have been falling and #oil hasn't yet joined the price rise rally, the next phase of a downturn may be in order. After commodities finish falling then consumer goods are hit and eventually the service sector falls. Then the bubble bursts in asset prices.

My suggestion, buy commodity focused stocks.

Agreed. Many commodities are looking to have bottomed and are poised for recovery, however, the downturn is likely to spread to other parts of the market next which will hurt the US more than the commodities down cycle that really hit oil countries and China more than the US.

I agree there are amazingly good stocks at reasonable, not cheap valuations. Not to say they won't get clobbered in a downturn, but they are reasonable in the long run. Sadly most of these are unloved which makes them a good value. My suggestion is look at commodity players especially. Sure they got clobbered and haven't come back. However, we all know the cycle moves and the first to get hit are these and they recover as the rest of the market then gets clobbered.

I agree that oil companies, in particular that can survive this downwards glut, will perform very well in the future. However, currently short term oversupply lasting as long as a decade is what we face in the short run.

"Recession or not recession doesn’t matter; the economy is clearly malfunctioning and doing so in what appears to be permanent fashion, or what some have called secular stagnation. However, even term itself understates the severity of what we are facing, especially since even those economists who are open enough to recognize the possibility still refuse to see its most obvious correlation and likely cause." We certainly know that Japan's easing and monetary QE led to decades of a bad economy that has morphed into the mess it is now in. Why should we expect anything different as we plunge into a central bank managed economy that is a duplicate of that minus the high savings rate.

Haha you have a point, although the new nuclear plants don't melt down the same way as old ones do with water. New nuclear technology is much better if they build them correctly. That said, I would avoid building them by the ocean and by fault lines.

You bring up a very secret point about the managed economy. You are quite right that TBTF banks and the central bank, although not talked about openly, don't want strong growth which would require an end of QE, Zirp, create inflation, and lower asset prices. That is why Japan's ruling party doesn't want it either.

In effect, it transfers wealth from banks to ordinary citizens. Mon dieu, we can't have that.

Thanks for the insight Steve. It's nice to read someone else honest enough to state the facts which every broker in America doesn't want told to their clients.

I've been stating this for years now. If you have the money buy stocks and manage them as close to whatever index you are following or make a better, safer one. Not only do you pay fees that come out of your profits if you are lucky, but you pay taxes on the theoretical gains as well. This is why the IRS loves them so much as well. If you do own them. make sure they are in your retirement fund protected from capital gains tax.

Although people point out how bad gold is they never look at the chart comparisons to where we are going, which is Japan's market versus gold. Look at the Yen or their stock market to gold and you will see why for Japanese, gold was a great investment and why it may be a great investment if we keep trying to copy Japan into our own lost generation, lost decade after decade, no growth infinite government debt hole.

The question is, besides Yellen being heavily into the socialist managed economy garbage, why are we purposely copying the Japanese failed economy? If indeed Yellen is a socialist, it would make sense. This is a great way to bring low or destroy America's free market capitalism.

Maybe she is following Nikita Khrushchev's wish, “We do not have to invade the United States, we will destroy you from within.”