“The bulls will buy stocks believing that we have another bull market on our hands. After having lost 50% of their money since 2007, they’ll lose another 20% – 30% when this rally collapses.
The bears, meanwhile, are convinced that there is worse to come. They think the stimulus spending programs will cause inflation. So they’re buying gold and commodity stocks sure that when inflation comes, it will cause mining and oil stocks to soar. Maybe it will eventually. But the first big move will probably be down. They, too, will lose big.
That could be the Big Surprise of this depression. It will kill the stock market bulls when the bear market rally collapses… then it will kill the stock market bears when the mining and commodity stocks collapse… and then it will wipe out the middle-class savers when inflation increases and the dollar collapses.” – Bill Bonner, writing in the Fleet Street Invest newsletter