Financial Sense Blog

A common flaw that we see the average investor make is to follow their investments measured in foreign currencies and at the same time forget to calculate their local exchange rate on those investments. This is a HUGE mistake as the fluctuation of an investor’s home currency has a massive impact on their returns.

According to some experts the U.S. economy is one “event” away from a catastrophic sequence. My own variation on this sequence goes something like this: first, the dollar collapses; second, the government’s response prevents any chance for recovery; third, political unrest and destabilization begins; last, the defensive function of the state fails as external and internal enemies take advantage of the country’s weakness. This sequence would likely be nonsense if it were only my sequence.

Most market observers believe a break above 1,130 is unlikely based on (a) weak volume and (b) strong trading range resistance just a few points above us. We share those concerns. However, we must be prepared for a possible break above 1,130 over the next week or so based on a clear improvement in the market’s technicals (charts and indicators) and recent economic data (weak but not projecting a double-dip).

Let me be upfront: I hate gold (and silver). Hoarding isn’t beneficial to anyone. Yet my faith has been put in 5 G’s: G(religious edit)d, Gold, Guns & Grub. Having absolute faith in the 5th G - (the Government will continue to screw it up) is why I can have faith in the other four. Today I stumbled upon a colossal moron whose website clearly underscores the 5th G.

Just a fast look at where we just were (yesterday) that predicts where we will be tomorrow.

The race to debase only looks set to raise gold's global appeal still further... GOLD is suddenly all about the Dollar again. Or so you might think.

This past week the administration announced its choice for the first credit czar at the new Consumer Financial Protection Bureau. This bureau was created as part of the supposed Wall Street reform bill recently passed by Congress. This new bureau, which represents nothing more than another layer of useless Washington bureaucracy, will be housed within the Federal Reserve-- one of the most anti-consumer institutions in Washington.

In short, gold and silver are looking and feeling toppy here. While I am bullish on them long term, we could see sharp pullback which could take months to regain these prices. I am not short metals yet but very close to taking a short counter trend trade.

Today, we turn to one of the more interesting – and colorful – characters on our team, Marin Katusa. Marin’s bio neglects to mention that he is also the lead singer of a rock band called Era Flair. Why should investors listen to a guy who wears leather pants and plays an electric guitar? Because he’s a bloody genius, that’s why – and he’s dialed into these markets like no one else. So, Marin, what’s hot and how do you make money on energy today?

For a small country with an economy based on shipping, tourism and agriculture, Greece caught the world's attention in April and May 2010, when it edged close to a sovereign debt default and threatened to rend the fabric of the European Union (EU). Supported by a €110 billion credit facility by the EU/IMF, the government implemented a tough economic reform program.