Arrears in pension funding are about to move to the front row of the State and Municipal financial problems. Bankruptcy will be a primary means to get out from under the liabilities... But who will be the first to seek protection?
If that should be the case one would have to expect that a drop in demand for equities (and other things) is going to have to occur at some point this year. It could be as early away as four months (the last month of QE will be of no significance). This creates a problem for policy makers. They can’t let stocks find their own level. After all, it is now proven that we need stocks going up for the economy to expand, it must work the other way round. Right?
This week’s letter is a result of two lengthy conversations I had today, which have me in a reflective mode. Plus, I finished the last, final edits of my book, all of which is causing me to mull over the unsustainability of the US fiscal situation. There is a true Endgame here, and it may happen before we are ready.
Depending what type of trader you are and what you focus on the most for trading you could be either bullish or bearish on the stock market right now. The charts below show how the Dow Jones Industrial Average is bullish while the Small-Cap Russell 2K is bearish. Options expiration last week really mixed the market up as the market makers and the big money players manipulate stock prices in their favor.
There can be little doubt that Fed Chairman Benjamin Bernanke has been a very, very good friend to gold investors. However, some of those who have benefited from his largesse now fear that the recent selloff in gold indicates an imminent end to Bernanke's monetary high-wire act.
Good morning. Although the DJIA powered on to its 8th straight weekly gain, the rest of the market indices went the other way with the Russell 2000, Midcaps, and the NASDAQ notably weak. And for the most part, Friday's action continued the trend as the Dow finished up +49 while the NASDAQ, Russell and Midcaps all declined. So what do we take away from this divergent behavior? Perhaps a review of the big picture will help, so let's see where we're at.
Platts last week that China's crude oil demand reached record levels in December, rising 18% year over year to a record 9.6 million barrels per day (b/d) average. Oil demand in December was up 7% from November's the previous record high – so it appears demand continues to ramp upward in a significant manner. The continued increase in demand has been labeled as ‘astounding’ by industry analysts.
In spite of its impressive run up in price, silver is still undervalued and misunderstood. The popular delusion of cheap, industrial silver will be difficult for holders of the white metal to overcome, but it will happen someday. And when it does, as far as the silver price, it will be clear, blue sky.
