The conventional view looks at the domestic credit bubble, the trillions in derivatives and the phantom assets propping the whole mess up and concludes that the only way out is to print the U.S. dollar into oblivion, i.e. create enough dollars that the debts can be paid but in doing so, depreciate the dollar's purchasing power to near-zero.This process of extravagant creation of paper money is also called hyper-inflation. While it is compelling to see hyper-inflation as the only way out in terms of the domestic credit/leverage bubble, the dollar has an entirely different dynamic if we look at foreign exchange (FX) and foreign trade. Words: 1675

The conventional view looks at the domestic credit bubble, the trillions in derivatives and the phantom assets propping the whole mess up and concludes that the only way out is to print the U.S. dollar into oblivion, i.e. create enough dollars that the debts can be paid but in doing so, depreciate the dollar's purchasing power to near-zero.This process of extravagant creation of paper money is also called hyper-inflation. While it is compelling to see hyper-inflation as the only way out in terms of the domestic credit/leverage bubble, the dollar has an entirely different dynamic if we look at foreign exchange (FX) and foreign trade. Words: 1675

A new position paper by Seth J. Masters, chief investment officer of Bernstein Global Wealth Management, entitled “The Case for the 20,000 Dow” is startling. Masters maintains that the odds Dow will rise by more than 7,000 points - an increase of more than 50% - by the end of this decade are excellent. [Below is his argument for such a lofty expectation.] Words: 715

A new position paper by Seth J. Masters, chief investment officer of Bernstein Global Wealth Management, entitled “The Case for the 20,000 Dow” is startling. Masters maintains that the odds Dow will rise by more than 7,000 points - an increase of more than 50% - by the end of this decade are excellent. [Below is his argument for such a lofty expectation.] Words: 715

Some of the most rewarding set ups in investing come when extremes have been reached. Currently the Gold Miners Bullish Percent Index has dropped to 7.14% - an extreme reading, one rarely ever seen, and not since the panic drop in March of 2009. Following that signal, GDX rallied for the next 2½ years increasing over 4 times in value. As such, a move up in the Gold Miners Bullish Percent Index from these historically low levels could signal another major move in gold mining stocks....[Let me explain further.] Words: 1078

Some of the most rewarding set ups in investing come when extremes have been reached. Currently the Gold Miners Bullish Percent Index has dropped to 7.14% - an extreme reading, one rarely ever seen, and not since the panic drop in March of 2009. Following that signal, GDX rallied for the next 2½ years increasing over 4 times in value. As such, a move up in the Gold Miners Bullish Percent Index from these historically low levels could signal another major move in gold mining stocks....[Let me explain further.] Words: 1078

Some argue that the Fed is inorganically manipulating free enterprise while others maintain that all the Fed is trying to do is create a balanced economy. This infographic looks at how the Fed's actions are actually impacting the economy and just what information is still being kept from us.

The U.S. is about two years behind Europe’s pernicious path. We are now over 100% debt to GDP, and if we want to know our future, all we have to do is look across the Atlantic because that’s exactly where we are headed.

The American Association of Individual Investors (AAII) released its latest sentiment readings yesterday...[which showed that] bullish sentiment dropped a full eight percentage points to 22.19%, the largest weekly decline since April 12....Now that virtually no one is optimistic about the stock market, that’s all the more reason we should be bullish. You see, during the current bull market, when bullish sentiment drops below 25%, stocks (almost) always rally over the next three and six months. Take a look. Words: 384

The American Association of Individual Investors (AAII) released its latest sentiment readings yesterday...[which showed that] bullish sentiment dropped a full eight percentage points to 22.19%, the largest weekly decline since April 12....Now that virtually no one is optimistic about the stock market, that’s all the more reason we should be bullish. You see, during the current bull market, when bullish sentiment drops below 25%, stocks (almost) always rally over the next three and six months. Take a look. Words: 384