Last Sunday, the world found out about the death of Osama bin Laden in Pakistan... And Monday, one would have thought the markets would have been flying on the news. They weren't.
Instead, the markets finally woke up to the economic situation they had been ignoring for months.
A falling dollar, an overwhelming amount of government debt and high unemployment haven't been hitting the markets as they should. Indeed, the markets have been largely ignoring this news, trending higher and higher.
Is this rally sustainable?
Probably not. And this week has shown that markets are vulnerable... All markets. We've seen commodities get thumped, too.
So let's take a look at our research on where to go from here.
Financial Stocks Are Shaky
Last weekend, Warren Buffett announced that he was holding his Goldman Sachs (GS:NYSE) warrants, even though he had a big gain on them. He intends to exercise them before they expire. This is good news for financial stocks, right?
Maybe in the long term, but financial stocks might have a tough few months ahead of them. Read Monday's Smart Investing Daily article for why financial stocks are shaky.
Markets Closed Lower After bin Laden Death?
Monday's markets opened higher, than erased gains, finishing in the red. This should have been a banner day for markets after the death of Osama bin Laden. What happened? Analysts realized that terrorism doesn't end with bin Laden, and that there are more relevant reports to focus on...
Like jobs numbers, inflation, slowing GDP... The markets had been largely ignoring these reports, and have been on an unsustainable ride higher. Read Tuesday's Smart Investing Daily for more details.
Is the American Turnaround for Real?
Now that the markets are focused on the economy, should we be talking about the American Turnaround? One editor is... Michael Robinson, editor of 180 Trader, was our guest contributor on Wednesday. His article talks about momentum of an American Turnaround.
We warned you that this type of ground-floor investing isn't for everyone, but the potential gains are incredibly exciting, and a bit irresistible. Read Michael's article for more information.
Expect a Weak Job's Report
Thursday, Jared warned you that we could see a weak jobs report on Friday. Bad jobs news could weigh down markets, and we could see a bit of a pullback. But after the jobs report, investors should watch the government and the Fed for their reaction.
Could this be the reason Bernanke needs to start a third round of government debt buying? Maybe... Read Jared's Smart Investing Daily article for what will happen next.
Should You Invest in Silver... Again?
Earlier this week commodities took a huge hit. Gold fell below $1,500, and silver dropped from $50 to $35 an ounce. Does this mean it's time to buy more silver? While the drop certainly looks like an opportunity, Jared says to wait before you pull the trigger.
There are a couple of factors at work here that you should take a look at before jumping in right now. He's outlined them in Friday's Smart Investing Daily.
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