The Charade Is Ending In 18 Days

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You know what the 'silly season' is, right?

We're right in the last 18 days of it and it happens every 4 years. I'm referring of course to the Presidential Election cycle.

Back last summer when the stock market was diving, I reassured Absolute Wealth readers that the market  would rally through the end of the year, and it has rallied to nearly all-time highs.

To the surprise of many who look at the unemployment rate, the decline in housing, manufacturing, and the debt crisis stalemate, this has been a banner year for stocks in spite of the overall economy.

My prediction was a safe bet because over 60% of  Presidential election years see a bull market of some degree.

But anyone with a functioning brain can see that behind the silly season facade, there are looming problems that could slay the bull market without mercy - even beyond the problems I've already mentioned.

There really is no legitimate reason for the stock market to be rising aside from incredibly loose monetary policy pumping liquidity into the financial sector.

The conveniently timed Fed announcement of QE3  right before the election pretty much assured that the market would hold up through early November at least.

But the charade is coming to an end in 18 days.

Whoever wins the Presidency, the lame duck session of Congress is likely to do tremendous damage because of the expiring Bush Tax Cuts, the Defense sequestration, and the possibility of another debt ceiling fight.

One side or the other is going to be very bitter and we should expect zero 'bipartisanship' to solve problems like avoiding going off a fiscal cliff, Thelma and Louise style.

That means there is plenty of opportunity to trigger a whole ton of chaos in stocks, bonds, and gold in particular because inflation has been rearing its ugly head more and more lately.

Gold prices are near all time highs, but even if it sells off substantially it remains your best hedge against a rapid collapse in the Dollar.

I'm not suggesting that you play the direction of the Gold market at all for the purposes of this article. Nor am I suggesting that you should convert all your Dollars to gold coins or bullion, either.

Regardless of what happens on November 6th, the coming year presents numerous daunting economic hurdles.

With there being no further reason to prop up the market and plenty of downside risk, now would be a good time to make sure you can derive at least some of your income from Gold instead of just Dollars.

AbsoluteWealth.com publishes a unique course on how to buy Gold for up to 75% below whatever the current prices are. The main benefit of this approach is to generate current income in Gold, but a side benefit is that you can actually stock up on Gold at essentially wholesale prices, too.

I highly recommend that you check it out HERE.

The simple reality is that in just 18 days the forces that have propped up this crazy market are likely to shift. Keep in mind that most of history's worst sell offs have occurred in October, too. Word to the wise.

Good Investing,

David K. Miller
Managing Editor, Absolute Wealth

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