Oil prices are bouncing around quite a bit these days but we think oil has a lot of long-term strength and a strong case can be made for $100 oil.
Recent weeks have not been kind to any commodity investments. The Silver bubble had encouraged an unstable narrow focus for investing funds. With the coming of the Great Silver Crash of 2011, contagion caused commodity prices to move lower.
Jim Puplava and Felix Zulauf discuss a wide variety of critical economic issues, including the rising risk of inflation, the future of the European Union, China and the developing world, and the potential revolt of the bond market to massive debt creation.
Is China currently rebalancing? The currency has been appreciating, the PBoC has hiked interest rates four times, and wages have been surging. Because of all of this I am often asked if China has finally begun the long-waited rebalancing process and whether we have yet seen an improvement in the underlying economy caused by a rising consumption share.
The Fed justified the current round of quantitative easing "to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate" (full text). In effect, the Fed is trying to increase inflation, operating at the macro level. But what does an increase in inflation mean at the micro level — specifically to your household?
Bill Gross of Pimco made major news last month when it was learned that they—the world’s largest bond manager—were shorting US debt in its flagship Total Return Fund. Of course, it’s not hard to understand why they'd be shorting U.S. Treasuries—one merely has to look at the government’s indebtedness and lack of political willpower to reach such an obvious investment conclusion. However, it is likely Gross will be early on his call as the possible exceptions he provides for why US debt may rally appear to be gaining steam.
Correspondent E.M. responded to $6.5 Trillion Lost, One House at a Time with this succinct account of housing's role in declining household wealth.E.M. is not a realtor or in a housing-related profession; his report on housing valuations in the Atlanta area is that of a knowledgeable observer and does not claim to be a complete statistical survey.
Only two weeks ago, the price of silver was rapidly appreciating in a parabolic advance. Back then, sentiment towards the white metal was extremely bullish and its price was approximately 78% above its 200-day moving average. Furthermore, on the 25th of April, silver registered a key reversal whereby its price tested the all-time high recorded in 1980 but failed to hold on to its intra-day gains.
The stock market is in good shape. It’s the commodities and the commodity producers that have given back some. While silver and gold bullion have been capturing headlines in the great sell-off as of late, the producers have been in decline weeks before. In fact, many have been consolidating in a trading range since December last year.
We're at the beginning of a very long period of treacherous economic and financial disruption.