Europe continues discussing short term fixes for its debt problems. The fact is that none of these fixes solve the underlying problem of to much debt and slow growth. Sooner or later, Europe will have to deleverage; and deflation will take place.
This week, the stock markets continued to rally. I am looking at a peak in the next three weeks - at the latest first week of January. The probable S&P500 target is between 1,300 and 1340. After this rally, There is the likelyhood of a substantial stock correction in the first half of 2012 and an economic slowdown.
Gold consolidating. It is too early to tell whether the up trend will continue or reverse.
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