I just read Chuck Bulter's :" It's time to batten down the hatches."

http://www.kitco.com/ind/Butler/jun162011.html

There is a quote below which is precisely what I was talking about regarding a potetntially serious downside. It has to do with the delay of qe3. When qe3 is finally perceived as active then things will go back up. Still to ignore this is reckless.

"So, folks… this is what I was talking about when I told you that as non-dollar investors you’ll need to either batten down the hatches (like in 2005, & 2008) through all this dollar strength, or if you were going to sell, you should have already done so… For I told you that the markets wouldn’t wait until the “actual end of June”… And if you want to take advantage of the much cheaper prices of currencies and metals, then the next couple of months should be your cup o’ tea… Because that’s certainly what we have going on today, and most likely for the next couple of months, like I said.

And, you’ll recall that I said this dollar strength would last until the Fed can’t stand to see the stock market losses mounting like they will be, yields rising again on Treasuries, and of course Unemployment remaining a real pain in the neck for them. I know, I know, the Fed members have all said over and over again, that there will be no more stimulus… But, I’m sure they said the same thing after QE1… Once more stimulus is discovered, and I say “discovered”, because I’m of the belief that the there’s no way that the Fed wants to admit (when it happens that is) that they were wrong about not needing more stimulus… So, we could see more back door buying from the Primary Dealers of Treasuries… But, when it’s discovered, I feel that the markets will reverse the dollar buying."