The aftershocks of the Japanese earthquake are still being felt around the world. People everywhere are reeling from the triple whammy of a massive earthquake, a terrifying tsunami and now the prospects of a nuclear accident.
Why do value investors hate gold? Does that mean that you should hate it too? To understand this, let's first look at how value investors think, and then understand why they hate gold.Value investing is based on the premise that financial securities -- or really any kind of asset or business has two prices: the market price and a theoretical price arrived at through analytical methods known as intrinsic value.
The technical landscape of the market has deteriorated significantly over the past few weeks. Only 60% of stocks in the S&P 500 are either basing or advancing, down from 77% the week prior. This is the lowest reading of market strength since early October 2010. Expect the 1302 level to be stout resistance.
We believe in investing in long term bull market trends. To illustrate this point consider the following. In theory, with only two trades and two and a half long term trends, an individual could have turned only $10,000 into more than $47.6 million dollars.
Monetary Base is rising exponentially. The current total is 2.35 trillion dollars. The increase since Jan 1/11 is 15.7%. The annualized increase is almost 65%! This increase is providing fuel for gold and silver to rise!
Most of the debate over the rising cost of food and fuel has centered around its potential inflationary impact on the economy. What many observers seem to be missing is that within the context of the long-wave cycle, a rising oil price is actually deflationary and can be devastating to the economic outlook. In this commentary we’ll see how deflation is the real threat to the economic recovery.
What happens when the Fed is finished with QE2? I have been letting that filter into my thinking lately as I look at the economic landscape and the data we have seen the past few weeks. Correlation is not causation, as I often say, but all we can do is look back at what happened last time and speculate about the future.
For months and months I've been warning investors that the dollar was going to come under extreme pressure sometime this year. I expected it to probably happen in the spring. Many people thought I was nuts.
Japan is being replaced on the news by events in North Africa. Few if any journalists are writing about what will soon impact the US. We share the problems with the Japanese, it is just tht no one is talking about it.
