Investing

We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments. Thus most of these assets are also worth-less and the world financial system is a house of cards where each instrument’s false value is artificially supported by another instrument’s false value. The fuse of the world financial market time bomb has been lit. There is no longer a question of IF it will happen but only WHEN and HOW. Words: 1650

The return of the Euro debt contagion and drop in the bond markets across the world is pushing interest rates higher and it has investors concerned and rightly so - and nowhere has the concern been more prominent than in gold. [Let me explain.] Words: 759

It is fascinating to be living during the greatest Precious Metals (PM) Bull Market in history – and to be entering its Seasonal Strength - and I look forward to keeping you informed on a regular basis throughout 2011 as it unfolds. Words: 1119

From a historical standpoint, the dividend yield of 2% on the S&P 500 is too low. It smacks of a stock market top and underscores the point that the market is too optimistic in the sense that investors are willing to forgo yield because they assume that they will get the return via the capital gain. The last time S&P yields were around this level was in the summer of 2000, and we know what happened shortly after that! Words: 888

These days it is almost impossible to find anyone who is long-term bearish on [the U.S. dollar], the stock market or the economy but I think they are all going to be wrong - horribly wrong. I believe that in 2011 inflation will spike horribly, the dollar will collapse, the stock market will begin its third leg down in the secular bear market and the global economy will tip over into the next recession that will be much worse than the last one. Words: 555

The Holiday Season often tends to usher in strength for the Precious Metals Sector and this is especially true for those Holiday Seasons which are related in a fractal pattern. Indeed, we expect to see a sharp rise (approx. 70%) in the HUI Index starting the week after Christmas with a secondary run-up into May of 2011. Words: 360

While growth of the global economy is sluggish and the outlook for meaningful improvements looks bleak, in a world with few options, muddling along doesn’t look so bad - and the U.S. is doing just that, due in large part from the aggressive stimulus policies. The question is, however, whether or not it will continue. Words: 761

There are plenty of reasons to be concerned about the U.S. economy in 2011 [but not for U.S. stocks if the history of] the Presidential Cycle is any indication. The third year of a president’s [four year] term is typically the strongest producing an average annual gain of 14.12% for the S&P 500 and, under Democratic leadership, that number moves even higher to an average gain of 17.7%! Words: 436

We appear to be at a very interesting juncture in the precious metals sector at this time. As I noted in the last editorial, at this juncture in the 70's fractal gold made a vertical move that would suggest a rise up into the $1,600s over the coming 4 or 5 weeks. Furthermore, I have a potential target for gold to rise up to $1,800 to $2,100 into May/ June of 2011 with a median target of around $1,950. Words: 610

Since the dawn of this financial crisis, my portfolio has included an allocation to gold. I viewed this as an important element of stability and protection and I believed in a longer-term story taking hold. Last week I kissed the precious metal goodbye for now and this is my explanation as to my reasoning. Words: 1382