The Federal Reserve has decided to leave its target interest rate unchanged at a range of 0.25% - 0.5% while suggesting that a hike later in the year was very likely. This article presents the differing points of view of two former Fed officials as to whether it was the right call or not.
Read More »The Value of Education Is Almost Off the Charts!
What is the value of education for household income? The Census Bureau's annual survey data for 2015 published last week gives us some interesting insights into this question.
Read More »A Must Read! The Many Ways to Invest In Gold and the Pros & Cons of Each (+2K Views)
I’m actually short gold as a short-term tactical trade given that the Federal Reserve itching to raise rates and inflation is still very muted but, if you insist on owning gold, here's a look at 5 ways to own gold and why you might choose one way over another.
Read More »We’re In A Bubble! It’s Time to Take Profits, Increase Your Cash Position or Buy Some Protection (+2K Views)
A bubble is the state of a market before the crash. It is a situation in which assets trade at a price that is considerably higher than their intrinsic value and, in my view we're currently in a bubble. The current S&P 500 P/E is at 25.09 (when the historical average is 15.61). The question is, "When will the market crash?" and I see worrying signs that this could happen soon.
Read More »Stockman on Trump & “The Revolt Of the Rubes”
Economic expert and best-selling author, David Stockman, offers a dire view of the deep financial trouble America faces in his new book titled “Trumped!” in which he is quoted as saying "The rubes are revolting, and they are revolting because they can see the system is rigged. These people are fed up, and they have had enough, and I think this is where Trump is coming from. I think we are at an inflection point where someone is finally challenging the Wall Street/Washington elites. Trump is kind of a wild man in some ways, but he hasn’t spent the last 30 years in Washington drinking the Kool-Aid."
Read More »Here’s Donald Trump’s Economic Plan “to save the U.S. economy”
Donald Trump is promising change, and many of his proposals sound good (and, yes, there are also some areas to be concerned about), but Trump's plan stops well short of the fundamental overhaul of our economic and financial systems that is required. That being said, what he is proposing is vastly superior to Hillary Clinton’s plan so he should definitely be applauded for at least moving in the right direction. Below are some of his economic proposals "to save the U.S. economy."
Read More »Top Silver Stocks for 2016: September Update
Right before the start of the year, I wrote an article outlining my top 5 overall silver stock picks for 2016. I may not be as bullish on these picks as I was back in December 2015 so here's an update including the performance of my picks and my current recommendations.
Read More »Calpers’ $139 Billion Pension Shortfall Might Actually Be As High As $500 Billion – Even $1 Trillion!
Calpers, the nation's largest pension fund, recently reported a $139 billion shortfall - but is the actual shortfall more likely to be $500 billion to $1 trillion when we adjust their investment assumptions - that ignore how the Federal Reserve has changed the markets - for our current reality. If so, then there is an explosive increase in pension obligations - and taxpayer obligations - that greatly exceed what is being reported by the governments or in the media.
Read More »Crude Oil: Will It Collapse Into the $30s – or Soar to $70 – 90? 5 Points of Views (+2K Views)
Below are 5 different takes on what we can expect to see for WTI crude oil prices from a fundamental perspective and from a technical perspective. The range is considerable - from as low as the $30s to Fibonacci projections as high as $93. Who's right? You be the judge.
Read More »Efforts of Financial Consultants to Institutions Are “Fruitless” Reveals New Study – Here’s Why
According to a research paper from the latest issue of the Journal of Finance, there is "no evidence that the recommendations of financial consultants to institutions add value, suggesting that the search for winners, encouraged and guided by investment consultants, is fruitless". This article identifies the reasons behind why that shocking revelation is the case.
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