Sunday Evening

I am postponing my post on the proposed 'Bretton Woods' discussions; George Bush has promised to host a summit in the very near future and a lot of information is likely to surface soon. I will post this as soon as we have enough information in the public domain.

What should we expect overnight? Well, the central banks continue to pump billions into the world's money markets on a daily basis. Governments are talking about underwriting all debtors, public and private, massive new spending on public works as well as pumping billions into the banks.

I see no fundamental basis for investing in equities at the moment. Stocks are likely to continue to be highly volatile - a daytrader's dream but an investor's nightmare. I believe that we still have much deeper falls to come - another 30% off of present stock prices seems likely.

I continue to believe that the Euro has bottomed in this present cycle and expect the dollar to start to retreat. It could be that the US Treasury will maintain the dollar until after the election on November 4th. That is certainly within their power.