Gold and silver investments are looking great in 2011.

December 22, 2010 – With gold and silver investments looking great in 2011, it is surprising that the Wall Street Journal’s Richard Barley should proclaim that “Stock Markets Are Poised to Steal the Show Next Year.” It would be nice to get some performance out of that part of the portfolio for a change, but don’t hold your breath.

Barley’s comments, which for the most part compare stocks to a deteriorating bond market and pertain only to the trader elite, are more like a warning to the average investor. Barley touts “cash-rich corporate balance sheets [and] strong earnings” as sure signs of a banner year for Wall Street, which it well might be for those siphoning off corporate wealth for M&As and private equity schemes. There is certainly no indication that Wall Street has had a change of heart and will now forego trader greed for the betterment of investors or even the economy.

To really steal the show the stock market will need cash from investors, and to win them back they must convince us that the tide has turned. Showing us Scrooge McDuck frolicking in his vault and promising us that we will soon be invited in will not work. It will take putting a sizeable portion of all that cash and earnings back where it belongs – in returns to investors.

Barley also states that “global growth [is] looking good,” a feeble attempt to drum up optimism that boggles the mind. A more realistic evaluation would be that global growth is modest, shored up only by the tumultuous emerging Asian economies. Barley concedes that point and hedges his claim by saying that “volatility is likely [and] politics and policy are big risks.”

“These hazards will likely drive periods of risk aversion,” Barley concludes. With that we can agree – it is why gold and silver investments are looking great.

Shannon King

Senior Staff Writer –

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