Author Archives: Jason Kelly

We put a trailing stop on our hedge that has risen nicely in this newest leg down in the market. Conditions are wonderfully oversold here, and I expect a countertrend rally soon. The advantage of a trailing stop is that it will rise with the hedge to catch any final spikes the market throws off, […]

It’s no secret that the global economy is in trouble, that governments everywhere are enacting massive stimulus plans for their economies, and that such massive stimuli often result in high inflation. Put differently, there looks to be a global currency devaluation underway, where the value of all fiat currencies becomes questionable. They’ll fluctuate relative to […]

Wednesday’s article, Japan’s Recession, elicited many emails. One of the best came from Kelly Letter subscriber Tom Glass in Redding, California. I’ve separated his note into sections, and address each individually below. How do families pay mortgages and rent as they lose their high-paying jobs? Taking a second job selling noodles would not cover the […]

The VIX is on the rise, and the following chart annotated by Arthur Hill at StockCharts.com illustrates what that has meant to stocks recently:

You think things are bad in America? You should see what we’re going through here in Japan. For the past few years, commentators have described Japan’s economy as closing in on two decades of recession. Two decades! That was bad enough, but on Monday the government reported that the economy is now performing at its […]