U.S. stocks are rallying on hopes on some sort of deal coming out of Washington. Just like we have witnessed over the past several years, lawmakers will come to some sort of last minute deal to kick the debt can down the road. Over the next week look for some sort of move to avert a default. The markets could rally short term on such a deal, but over the longer term the equity and housing markets appear to be ready for a major correction after rallying for two years. We are witnessing bubbles in certain areas of the market which I encourage investors to steer clear from especially banks, housing, social media and biotech as these are very crowded trades filled with promoters, snake oil salesman, charlatans and day traders. Overbought bubbles end up in devastating losses. Stay away from these high flying sectors and instead focus on the historic discounts in the mining sector.
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Take Profits In These High Flying Sectors and Consider The Historically Undervalued Miners
