Monday , 23 December 2024

Yearly Archives: 2011

Why the USD Index Could Fall to 65 and Gold Rise to…

At present the USD is at yet another major inflection point and what it does from here will have direct implications for U.S. investors, not only asset allocation (bonds, stocks, commodities, currencies) but also sector allocation (cyclicals, non-cyclicals). [Let's take a closer look at the situation.] Words: 2102

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Higher Interest Payments on Debt = Higher Prices for Gold and Silver

Historically the price of gold rises when there’s an increasing percentage of federal revenues going to pay interest on the national debt and...declines when US interest payments move down as a percentage of federal revenues. [Given what is currently unfolding,]...the forecast for the price of gold is simply up, up and away. [Let me show you in graphic form.] Words: 451

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Dow 20,000: the Latest in Hype, Happy Talk and Irrational Exuberance

Hot headlines about the Dow “storming back soon,” soaring to the “Next Stop, Dow 20,000” is nothing more than a new cycle of irrational exuberance. After losing an inflation-adjusted 20% the last decade, a prediction that the Dow will roar back 80% anytime soon is misleading, pure speculative hype. Reminds me of book titles like “Dow 36,000” and “Dow 100,000” back in 1999 - and memories of those mutual funds selling with absurd multiples over 40, with annual returns in excess of 100%. Worse than the tulip-bulb mania of the 1590s. What’s really roaring back is hype, happy talk and irrational exuberance. Words: 531

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Increased Productivity Has Benefited Your Employer – Not You! Here's Proof

In the past 20 years, the US economy has grown nearly 60 percent. This huge increase in productivity is partly due to automation, the internet, and other improvements in efficiency but it's also the result of Americans working harder—often without a big boost to their bottom lines. Oh, and meanwhile, corporate profits are up 20 percent. [Let me show you exactly what I mean.] Words: 550

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Global Systemic Crisis Coming THIS Summer!

This summer will confirm that the US Federal Reserve has lost its bet: the U.S. economy has, in fact, never left the "Very Great Depression" which it entered in 2008 despite the trillions of dollars injected... Unable to launch a QE3, the Fed will helplessly watch interest rates rise, US government deficit costs explode, the world dive into an intensified economic recession, stock exchanges collapse and the U.S. dollar show erratic behavior before suddenly losing 30% of its value. Words: 1157

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Stock Market is Due for a 15-20% Correction – Here's Why

Corporate America has been flying high since the recession, barely looking back since March 2009. The 70% rally in the S&P 500 in just under 2 years has been astounding to say the least - but are we really in 70% better shape as a nation since March 2009? No way! The dollar has continued to decrease in value, investments that feed off fear like gold and silver have soared....housing prices are still as low as in 2009, when they "crashed." The signs of a major market correction...[are] right in front of us... no one seems to notice [but I do]. I believe we could soon experience a market correction of from 15% to 20%. Let me explain why. Words: 913

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Will the S&P 500 Rally or Fall Off a Cliff?

In the face of lackluster economic growth and no hopes for new stimulus anytime in the near future, the global tightening cycle may force the market back into a deflation scare. Either way, caution remains warranted in such an environment. [Let me explain further.] Words: 568

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