You have t-bill yields falling to near record lows again as investors rush to the "safety" of US government debt (that alone is kinda funny, considering we're bankrupt), with investors apparently thinking deflation and depression are coming and are happy to earn essentially a negative interest rate on their cash.
Then at the same time you have investors bidding up gold to multi-decade highs, apparently fearing that the dollar is being debased and inflation is about to rage out of control. With a sprinkling of flight-to-safety store-of-wealth as well.
SO WHAT THE HELL IS GOING ON OUT THERE?
Well, one thing is that people are scared and trying to find a place to keep their wealth. And the second big thing is investors placing bets, very different bets, on the Inflation/Deflation thing.
If t-bills are in a bubble that could suddenly unwind, and gold is an asset that can be suddenly sold off to raise cash, and both are paying essentially no interest, that does lead us back to one thing, one sentence, one time-tested piece of advice:
Cash is King.
That said, I am using some cash now to buy very selected and targeted non-REIC buy-and-hold stocks that I see as unwisely and temporarily beaten down. CEOs and insiders were net buyers of stocks last month for the first time since 1995, and short levels are the highest since 1931, if that gives you some guidance as contrarians.
But keep these three words in your mind as it all continues to fall apart:
Cash is King.
Bubble Trouble: Could the Treasury Market Be Due for a Rapid Price Deflation?
Investors' raging demand for safe assets over the past six months may have created a bubble in the Treasury market -- and some onlookers expect to hear a bursting sound any minute now.
Insider Buys Exceed Sales, Signaling Market Bottom
The last seven times insiders bought more than they sold, between 1988 and 1995, the Standard & Poor's 500 Index rallied an average 21 percent in the following 12 months
While executives step up buying, short sellers are betting against U.S. companies like never before. The amount of short selling -- when traders sell borrowed shares expecting to buy them back after prices fall -- grew to 3.7 percent of the total shares on the NYSE last month, the highest since at least 1931.