In some respects, the cheerleaders merit their day in the sun. I was certainly personally surprised that more QE was actually announced prior to the presidential election, and utterly flabbergasted that Mr Benanke went so far as to essentially commit to stimulus without an end date. Although any sane observer [amongst whom I hope to be able to count myself, although years of being force-fed crystal meth by GM's harem of harpies has somewhat weakened an already tentative grasp on reality - Ed.] has appreciated for some time that the fiscal debt can only be solved practically through one of three broad policies (dollar devaluation; default; mass confiscation from citizens), it still came as something as a surprise to me that the Fed would be so explicit about their choice of option 1, and then be so aggressive about their mode of implementation.
The meme of "QE to infinity" seems apposite, although it's certainly not a done deal. Regardless, whether gold and silver are the best ways to profit from the Fed's decision or not is another matter entirely: a debate perhaps better left for another day. But let's just say that, although I was pleased with the rise in the d'Arc's gold investments, I was disappointed not to have invested more than I had in the resource companies of Kazakhmys (LON:KAZ) and Vedanta (LON:VED), which have both moved by 10% since Bernanke's announcement - compared with gold's 3.5% and silver's 6% (meaning that Monsieur d'Arc will be getting an especially nice Christmas present this year).
Regardless, the exam question for this post concerns whether or not it is a good idea to immediately throw one's life savings into PMs, resource (and other) stocks, etc. Perhaps the 'Bernanke bounce' was overdone, and Monday/Tuesday will see a sharp retracement. Or perhaps we are now at the start of a serious bull market in stocks that will eclipse the dotcom bubble, and it's best to get on board as quickly as possible.
