economic and financial volatility.It forces individuals and institutions with cash to buy something…anything. So, this cashis channeled into gold and/or different paper currencies, commodities, equities, bonds,real estate, and consumer goods and services, but obviously with different intensities andat different times. For instance, at some times, such as in 2008, more money will beallocated to gold; while at other times, such as since early March, more money will flowinto equities and industrial commodities. It is well understood that these money flows aredriven largely by speculative activity (and more than a little dose of manipulation). Theresult in all asset markets is very high volatility and price fluctuations that don’t appear tomake any sense to most market participants and observers who don’t understand the newrules of the investment game that were brought about by “money printing”.This is where we are today, irrespective of whether or not you and I like policies of “quantitative easing, massive bailouts, and frightening fiscal deficits” and their long-termconsequences! Another positive factor for stock markets is that a large number of Asianstock markets and individual stocks in the region had already bottomed out in Octoberand November of 2008 and didn’t confirm the new low in the S&P in early March.In Asia, the Taiwan and Shanghai indexes, and Korea’s Kospi Index, are all up by morethan 50% from their late October 2008 lows. (The Shenzhen Index is up 90%.) But it isnot only the Asian equity markets that have outperformed the US and Western Europeanmarkets over the last few months; since late January 2009, the RTS Russian Index is up66% and the MSCI Emerging Market ETF is up by 55% from its early November 2008low.This is not to say that the global economy is about to embark on a strong and sustainablegrowth phase. It also doesn’t mean that a new bull market in global equities à la 1982–2000 has begun. But I think that, at least in nominal terms (inflation-adjusted), the globalprinting presses being run by the world’s central banks and fiscal deficits have begun toimpact asset prices positively. Therefore, in the case of resource and mining stocks, aswell as Asian equities (and, for that matter, most emerging and other stock marketsaround the globe), the lows thatwere reached between October and March of this year arelikely to hold — that is, for now.The markets that have the highest probability of having made major longer-term lows areresource-related equities, emerging markets, and Japan. Conversely, the asset market thathas the highest probability of having made a secular high (such as Japan in 1989, or theNasdaq in March 2000) is the US long-term government bond market.Despite a still-weakening economy and massive quantitative easing, long-term bondyields appear to be on the verge of breaking out on the upside. I have listed again belowall the equity recommendations I have made since December 2008. Some of theseequities have already moved up substantially (resource and mining companies, inparticular) and, therefore, I would only buy most of these recommendations on acorrection.