The financial markets endgame is 'binary' with a likely outcome of 'one of two extremes'. This is an extremely important thing for everyone to think about. Below is more of what Mohamed El-Erian believes investors ought to be considering in these prevailing uncertain times and my comments/expansion on those views.

These days any time anyone shorts the yen—or any currency with below average interest rates for that matter—it gets referred to by some strategist or equity investor as ‘the carry trade’ - but it is wrong. Below is a clear description of what a carry trade is - and isn't - and why it is so prevasively misunderstood. Words: 714

The S&P 500 is trading at near record high levels on the back of liquidity glut in the financial system. I mention the liquidity factor because all other fundamental factors do not support current levels and valuations.

Out of control spending by a government is always the cause of hyperinflation. The debt ceiling had been the last remaining roadblock to unlimited federal government spending. By suspending the debt ceiling, the U.S. government has given itself a blank cheque, taking one giant leap down the road leading to the hyperinflation of the US dollar. Words: 632

Going forward, if gold can break $1,478, the next level of interest is the closing price of $1,501 from April 12. If you are looking to get long gold, it would probably be best to wait until the commodity can get back above at least one of these levels before making a commitment.

We are seeing signs of a bottom...in gold...but... prudence calls for waiting for some signs of stabilization before getting long. I would rather miss the first 10-20% move than lose another 50% should I get long prematurely. [Let me show you some charts that illustrate my caution.] Words: 288; Charts: 6

Many articles have been posted today, May 1st, regarding the investing adage "sell in May and go away". Below are links to 10 such articles on the subject to help you decide what course of action you should take.

Some times in history, investors feel so confident about the future of stocks, they actually use up all their available cash and then borrow money to invest in the stock market. Now is one of those times - and it suggests that now is the time to lower one's stock exposure. Here's why.

The Securities and Exchange Commission is worried that municipal bankruptcies, combined with an expected spike in interest rates, means that the muni bond market could face "Armageddon" with devastating consequences for the individual investors (74% of the total) who hold the paper of which many are retirees. Words: 490

Year-to-date, the dollar index, a trade weighted index comparing the U.S. dollar to a basket of six major currencies (Euro @ 57.6% weight, Japanese yen 13.6%, Pound sterling 11.9%, Canadian dollar 9.1%, Swedish krona 4.2% and Swiss franc 3.6%) is up 2.95% as of April 29, 2013 - but the U.S. Dollar Index is not the U.S. Dollar. To ascertain what may happen to the U.S. dollar, let’s look at the greenback from a couple of different angles