Deja Vu All Over Again

When F-TV flashed the crossing of 1200 by the S&P 500 as breaking news, I couldn't help but think of the Yogi Berra's famous quote "This is like deja vu all over again." Then I thought, does any this blogosphere discussion matter? Honestly, I have my doubts. Give them what they want, a bull market, and they come to embrace you regardless of how it is achieved.

The impressive V-shaped recovery, uncommon for stocks and indicative of currency related problems, has converted many investors into running-into-the-streets, pant-twirling bulls. I have updated the long-term charts to reflect the break of 1200.

U.S. Large Cap Stocks Capital Appreciation Index (LCSCAI); S&P 500


For what it's worth, I continue to urge discipline and understanding towards the nominal trend in stocks. The liquidity-driven illusion can fade as quickly as it started as the real economy remains crushed under the weight of a historic debt burden.

The constant currency or gold adjusted price of stocks reveals the true trend and severity of the economic problems at hand. Once the fourth consolidation within the constant currency trend is over, the hammer will drop on today's pant-twirlers.

U.S. Large Cap Stocks Capital Appreciation Index (LCSCAI); S&P 500 to Gold Ratio: