The stock market sold off after being extremely overvalued, says Fund Manager David Kranzler, but is still overvalued.
The stock market is bouncing, but not based on fundamental strength of the economy. The current volatility in the stock market is a sign of instability. Markets have further to fall, he says, so be wary of talk about a strong market.
Precious metals are on the rise, and Kranzler is hoping this trend to continue. In his opinion, there's a good probability of an extended bull move that began in late 2008. He believes the minings stocks will lead the way and outperform.
Dave Kranzler spent many years working in various Wall Street jobs. After business school, he primarily traded junk bonds for a large bank. Dave graduated from Oberlin College with majors in Economics and English and he also has an MBA from the University of Chicago, with a concentration in accounting and finance. Currently, he co-manages a precious metals and mining stock investment fund in Denver. He has nearly thirty years of experience in studying, researching, analyzing and investing in the financial markets. His daily articles can be found at his site, Investment Research Dynamics.