This is one of the reasons I pay close attention to Jim.
He’ll talk the long-term fundamental story, but when asked about his holdings, he reveals his current hand.

For example, the last time he said “I’m long the dollar, at least in the near term” was a few weeks before the gold smash last year.

Nobody is managing the austerity problems very well, including the United States and Europe. The problem just keeps getting worse and worse. The politicians are pushing the problem into the future.

Markets almost always react to the fundamentals. A lot of the noise in the markets are driven by television hype. In the long term, and even in the medium term, it is the fundamentals that drive the markets.

Everything right now is artificial. Way too much money has been printed, and a lot of the money is being spent by politicians who want to be re-elected.