Today both major stock indices finished higher, and I believe at record highs. I checked the Shiller PE ratio today, and it’s sitting at a frothy 32.71. It has only been this high twice before. The first was right before the Great Depression (1929) and the other was just before the dot com bubble burst in 2000. That is pretty scary stuff.
Anyways, the bond market sold off some today before being propped up right before the closing bell. This will be something to keep an eye on tomorrow because when bonds sell off in this environment, it is negative for stocks.
The biggest story of today for me is the dollar continuing its slide down. It is now approaching its 52 week low of just over 91. The falling dollar has been boosting almost all commodities and especially Gold and Silver. If the dollar breaks down below 91 it could get very ugly. I’m still holding my position in SLV which has performed nicely and I’m watching to see if the dollar keeps falling.
Bitcoin has had a significant recovery since my last post. It is back over $15,000 and appears to be starting a new uptrend.
Happy Trading