Ask yourself the 13 questions below and then ask yourself is the perceived bull market decline based on a change in the facts or on simple sentiment:
- Are the PIIGs reduced their debt burdens? Or have they increased further since recent crises?
- Does the US bond market look healthy or does it look like a 30 year bubble ready to bust?
- Are western consumers debt burdens dealt with?
- Are real interest rates positive or negative?
- Was the Cyprus savings confiscation something that occurs in a financially stable region?
- Are bank’s balance completely sheets largely cleared of bad debt?
- Are governments increasing or decreasing the burden on productive business?
- Are governments increasing or decreasing the burden on productive citizens?
- Are savers suddenly being rewarded for holding paper money?
- Is the public sector increasing or decreasing its influence on society as a whole?
- Why is the stock market hitting new highs if the general economy continues to struggle?
- Who and what exactly is leading the supposed recovery in housing ? Could it have anything (everything!) to do with the Fed buying 85 billion a month of mortgage backed securities?
- Are stocks or bonds or property at bargain valuations compared with historical metrics?
If the questions listed do not give cause for concern then you would be better off holding fiat currencies.
However not one of the answers would convince me that the bull market in metals is over.