Life and times, An Assessment

This past year has been tumultuous to say the least on the economic front. Looking back and recalling the news headlines as we lurched into recession, I get the feeling that most pundits and politicians don't have a clue what to think about what lies ahead, yet they spew much rhetoric regardless. One week the sky is falling and the next week we're screaching forward with surging stock prices. Here is what we know for sure. There has been a significant up move in commodity prices. Oil has been a stellar performer and natural gas seems to be skimming near a bottom. Junior equities have bounced hard from their November 2008 bottoms and hence those that held their noses and bought before Christmas are looking like market magicians. This influx in capital as injected by G8 governments is definitely starting to take effect but the jury is out whether this infusion will do more harm than good in the long run. I'm still a believer in holding junior gold producing companies given the difficulties facing fiat currencies right now.