You need to make sure you have a safe harbor for your money. Yes, I know it’s been a good year for the market, but what is supporting it? Take a look at the Baltic Dry Index. It shows the cost of transporting bulk goods across the world’s oceans. It’s up 27% YTD as shown in the first chart, but down 93% compared to its May 2008 peak. How much of this year’s gain is thanks to the money printing by the Federal Reserve? $85 billion a month goes a long way to keep markets afloat. Hedge funds loved trading the BDI until the crash in 2008. It’s hard to believe that there’s much substance supporting this current run.
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