Bitcoin Goes Mainstream

Barron's: Picks from the Pros

http://online.barrons.com/article/SB50001424052748704377904578072611505011562.html#articleTabs_article%3D1

Barron's: What does your portfolio look like?

Marc Faber:  I'm 25% in gold, 25% in equities, 25% in bonds, 25% in cash, and 25% in real estate. I use the same accounting standards as the U.S. Treasury.

Barron's: US Will See Run on Treasurys, Hyperinflation

http://www.moneynews.com/StreetTalk/US-Run-Treasurys-Hyperinflation/2011/01/05/id/381925

The disconnect between the market rally and the jobless economy

I've always posited this recent strong rally, while good for account values, was a bear market rally--a sucker's rally, if you will. While a 40% rally is legitimate by any measure, it's within a secular bear market. Why? Any recovery will be tepid, as industrial output is plummeting, cash- and credit-strapped consumers aren't spending, banks aren't lending, and the private sector isn't hiring. Barron's has a good article on the true measure of the state of the economy, tax revenue:

http://online.barrons.com/article/SB124579469824143923.html#mod=BOL_hpp_dc

I don't know when the market will wake up and realize how dire the prospects for worldwide economic growth are. But as long as central banks continue to print currency in an attempt to stimulate their respective economies, I suppose asset values can continue to rise. Aside from pivotal event-driven biotech stocks, and a few precious metal plays, I am on the sidelines, even if it means I miss the next 10 or 20%. It's never wrong to take profits.

It's been a good ride, but I am not going to fall in love with this market. I don't want my heart to be broken.

Sector Performance during a Bear Market

This is another Barron's data sheet gathered by Mark Lundeen depicting stock performance among different industry sectors. Between 1963 and 1975, gold mining stocks were the biggest winners, by far. Other winners were the drug sector stocks. Bringing up the rear were installment financing companies, utilities, and airlines.