By Peggy Schlichter

Sunday mornings have always been the part of the week that I look forward to the most.  This morning I caught myself remembering the different Sunday morning rituals that developed and changed over the years.  Having lived in so many different places over the last 37 years it amazes me how the rituals have changed and stayed the same.

Weekly brunches, barbeque’s, ball games, movie matinees and naps all factored in depending on where I was living and what sports I was involved with at the time.  But the one enduring thing I always did no matter where I was living was sit down and read the Sunday paper.  It seemed like that was the only day that I actually had time to sit still long enough to read the paper.  I looked forward to that hour or so every week.

I quit reading the Sunday paper about 8 months ago after I realized that it was no longer enjoyable.  The editorials were weak minded and biased, the funnies were barely so, the TV guide was printed so small that I needed cheaters along with my bifocals to decipher the shows and the size of the paper kept shrinking.   All in all it was more irritating that enjoyable to read it so I just quit buying it.

That does not mean that I do not miss it though.  I do every Sunday morning.  I miss the smell of the ink, the smudged fingers and the tangible feel of turning the page.  All of which you do not get from a mouse and screen.  It just does not feel like a Sunday morning any more…..

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I am happy to announce that I have not had a snake encounter since sweeping the one out of the house a while back.  Knock wood it stays that way.

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As always these are my thoughts and mine alone.  Take from it what you will.

How about those markets?  Here are my thoughts on what is going on in the markets the coming months and years.

The DJIA will continue to rise in a bear market rally to the 9000 to 9600 range.  This is a very good place to get out of the market before the bear continues to march downward.  I do not see it going any higher than that since the last leg down went considerably lower than the 7450 I previously thought.  The next leg down will in all likely hood  get to the 4000 level late this year or early next year.  This is considerably lower than the 6000 level I initially thought would happen.

There is some disturbing news popping up about 401k’s being frozen from withdrawals.  Especially if they are invested in commercial real estate.  Now is the time to check yours out and make sure that you are still in charge of your money.

The oil market is going to be a killer to pocketbooks in the coming months and years.  This rally is just about over.  It should get to about the 75 to 77 dollar range before heading back to the 20 to 25 dollar range in the near term before climbing higher again.  However in the out years it will go as high as 350 to 400 dollars a barrel.  Not a pretty thing to think about.  This climb in price will have nothing to do with scarcity or increasing demand.  It will be the direct result of inflation.  In the last year the Federal Reserve has doubled the money supply in circulation in the US.  They will continue to do so in their attempt to stave off a depression.  It will not work and climbing inflation will result.  In effect the dollar will be worth less and less requiring more and more dollars to purchase the same amounts of goods.  Manufacturers are sidestepping inflation now by packaging smaller amounts for the same price.

Gold will continue its way down.  Now is not the time to believe that gold will hit a new high any time soon.  It is in a bear market also.  Look for it to go below the 680 level before a rebound.  Remember that news is does not create trends.  The trend is lower and will continue that way.  The price of gold will slump along with the economy.