We don’t normally discuss our views on the stock market except in relative terms vis-a-vis bonds or commodities, but in this edition we take a direct look and conclude that the stock market is now not only fundamentally overvalued but at risk of a major correction. In all probability, should that occur, commodity prices are likely to correct in tandem, yet also outperform on the downside. Why?
Precious Metal bulls will tell you to buy the dips. This means, wait for the price to temporarily deflate, and then purchase your position. It is a way to maximize dollars for gold and silver purchased while maintaining a steady buying program in that metal. The same concept could be used for any fund or stock, as well.
If an oil company drills in Africa only because the Chinese government agreed to build new roads in the region, the company does not actually stand on its own two feet. The firm succeeds only due to the government’s actions.
What started as an exciting announcement for Goldman Sachs – that it would lead a major investment round in fast-growing social network Facebook with its renewed focus on banking is quickly turning into a public relations nightmare for the firm.
In a report released by the World Economic Forum ahead of its high-profile annual meeting in Davos, the organization claimed that the global economy will need access to an additional $103 trillion in “credit” to sustain normal economic growth. The question naturally arises: How will the creation of more “debt” help our debt-ridden global economy? It will not. However, it will directly benefit global financial institutions and the banking community… and that is what matters most these days. The more money they can lend, the more interest they can earn.
The long-standing stance of Mr. Treece that the manufacturing jobs will return to the US seems to be coming to fruition, and not a moment too soon. It is becoming increasingly obvious that such a shift is the only hope for America to return to its place as THE global economic superpower.
History offers no guarantees. If America plunges into an era of depression or violence which by then has not lifted, we will likely look back on the 1990s as the decade when we valued all the wrong things and made all the wrong choices.
With US house prices down about 25% from their peak, American real estate is looking cheap. But it's still not quite time to buy, says Dominic Frisby. Here, he looks at the real price of US property
