J.P. Morgan Asset Management has developed a chart showing the past two cycles in the S&P 500 highlighting peak and trough valuations. At face value it is very alarming as it suggests a potential decline of somewhere in the vicinity of 60% over the next year or two and concurs with previous innovative trend analyses included in this article. Charts: 4
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Dr. Faber and I Concur: There Are Major Reasons to be Very Cautious in 2013 – Here’s What To Do (+2K Views)
Dr. Marc Faber, the author and publisher of the "Gloom Boom And Doom" report is one of the most well-read economists out there. I am of the opinion that his suggestions and investment advice are more realistic than any other economist or analyst we hear and read regularly. The summary of Dr. Faber's latest monthly report suggests that he views 2013 as a year of capital preservation. In other words, Dr. Faber is not very bullish on risky asset classes for 2013. This article discusses Dr. Faber's views and the reasons to remain cautious in 2013. Words: 1494; Charts: 3; Tables: 1
Read More »If You Think Silver Is Going To Increase In 2013 Here's How to Best Maximize Your Return
I am not normally a big fan of precious metals but in 2013 I am an unabashed fan of silver. If SLV were to return 15% next year there is a 95% probability that a ProShares Ultrashort Silver ETF (ZSL) put option on SLV would return 80%+! [Let me explain how I have come to that conclusion.] Words: 985
Read More »U.S. Debt 101: If the U.S. Were A Stock Few Investors Would Own It – Here’s Why (+2K Views)
There has been a lot of media coverage about the United States' debt issue these days. Why should we care? Because as U.S. citizens, we all own stock in this "company" called the United States of America (let's say the ticker symbol is USA). We purchased this stock through the various taxes we pay every year (income tax, payroll tax, corporate tax) and we receive dividends through the various benefits we receive every year (security provided by defense budget, Medicare/Medicaid benefits, Social Security benefits, etc.). This article attempts to explain the U.S. national debt in simple layman's terms by analyzing the United States and its debt issue as if it were a stock investment. Words: 1929; Charts: 5; Tables: 1
Read More »Gold Bullion: A Lasting Gift Any Time of the Year – Here’s Why
We can all speculate about when the next leg up for gold will kick in, but the point for now is to take advantage of the weakness, like many of [the individuals, central banks and financial institutions are doing/suggesting. When the price breaks out of its trading range, are you sure you won't wish you'd bought a little more? Here's a sampling of this year's "gold bugs" and what they've been doing about precious metals recently. Words: 1449
Read More »The Big Mac Index Reveals the REAL Facts On U.S. Inflation! (+8K Views)
A look at the trend in prices of the Big Mac clearly shows that investors are being penalized with higher inflation, lower income from bonds and certificates of deposit and being led to believe that the economy is growing better than it really is. [Let me explain.] Words: 1012; Charts: 2
Read More »The Most Important Questions (and Answers) Regarding What the Futures Hold for 2013
Since 2012 is rapidly coming to a close, I’m fielding questions about what the future holds for 2013. My hope? That my answers will be both informative and instructive, and ultimately profitable, of course. Words: 1588; Charts: 2
Read More »These 6 Charts Illustrate That Hyperinflationary Pressure in America Is Growing (+2K Views)
The six charts I provide in this article illustrate why the hyperinflationary pressure in America is growing. This is not necessarily a forecast for hyperinflation - this is simply a demonstration that some of the precursors to a hyperinflationary cliff are building. (Words: 1001; Charts: 7)
Read More »QE4 Will Continue Until "The Cows Come Home & the Fat Lady Sings" But It Too Will Fail!
[The just announced] QE4 will see the Fed buying $85B per month in U.S. Tbonds and Fanny/Freddie bonds with newly printed dollars - essentially debasing the dollar by 1 $trillion per year. The cold reality, however, is that each time QE is launched we get less wealth-effect bang for the buck and more inflation and, IMO, by the time it's switched off in mid-2014, we will have a real-world inflation rate of 5%+. (Words: 863; Charts: 2)
Read More »7 Indications That Gold & Silver Bearishness Most Likely Will Continue
This article looks at 7 reasons why gold and silver should experience further weakness over the days/weeks ahead. (Words: 206; Charts: 5)
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