Ongoing economic trouble in Europe, including a “
“There is QE3 on the way,” said Don Luskin, chief investment officer at Trend Macro. “It’s just going to be at the June FMOC. It’s just going the happen. I don’t know what form it’s going to take, or how big it’s going to be, but it doesn’t matter because the ways of doing it are the same.”
Luskin said that especially in an election year, QE3 will happen because the Democrats need it.
One area to watch is the action in gold, especially after a terrible couple of weeks for stocks, he added.
“Gold is finally getting the idea,” Luskin said. “Gold has been going down with stocks. The same thing happened after the Lehman failure. What was the first risk asset in the world that turned around and signaled that it would eventually be OK? It was gold.”