Financial Sense Blog

I was asked recently for our official opinion on the topic of stock market valuations. My answer, in short, was, “yes.” Yes, the topic of stock valuation can become complicated and/or heated. Yes, stocks are clearly overvalued by some measures. Yes, stocks are only moderately priced by other measures. And finally, yes, they are even undervalued by others still. Thus, I’m of the opinion that this topic tends to be used by those analysts looking to either make headlines or to justify their positions.

The stages and the timing of the coming bond bust are to a large degree unpredictable. However, if history is any guide, these bond busts typically last for 10-20 years.

Exactly how high do oil prices have to rise before Saudi Arabia will start using it supposed three million barrels of spare capacity?

Nothing is cheap in today’s investment world. Because of the trillions of currency units that governments all over the world have created – and are continuing to create – financial assets are grossly overpriced. Stocks, bonds, property, commodities and cash are no bargains. Meanwhile, real wages are slipping rapidly among those who are working, and a large portion of the population is unemployed or underemployed.

Over the years, gold has proved an excellent store of wealth. As a medium of exchange, however, it's been found wanting. But Dominic Frisby believes there's a future for gold as a currency, and a return to the gold standard is entirely possible.

While the bears picked up the pace of selling on Tuesday, the market has been basically asleep since April 1 with tight trading ranges and low volatility. Periods of low volatility are often followed by periods of higher volatility.

How will the electric vehicle reshape the world we live in and how can we leverage the knowledge of this change into money making strategies?

Things are about to change. Moves are being made to stiff investors who are not paying attention and actions are being taken that will have great consequences in the market place. Be aware...

To suggest that the theoretical end of QE2 has been and continues to be widely anticipated by investors is an incredible understatement. Opinions on the financial market as well as real world economic outcomes diverge widely. The two QEs have been an unprecedented journey in the annals of Fed and US economic history.

Assets compete. If you create a huge volume of non-interest bearing money, somebody somewhere has to hold it. So long as close substitutes such as Treasury bills offer any competition at all, investors try to shift out of the non-interest bearing stuff into the interest-bearing stuff.