What was I thinking?
Over the past couple of years, I’ve preached caution. Corporate profits were down and unemployment was up. The economy wasn’t growing, but the federal debt was. Iran was developing nuclear capabilities while the entire continent of Europe was going bankrupt. And investors were still shell shocked from the 2008 financial meltdown.
And the federal government’s answer was to spend as much as possible, while printing more money and buying more bonds than at any time in history. After record stimulus spending and $4 trillion in bond buying, common sense would suggest high inflation and a sagging stock market; a good time to invest in gold and other hard assets.