A resilient market in the face of bad news is a very bullish sign for investors. The market internals snapped back in rapid fashion last week as the best gains since early November pushed many of the short-term indicators back toward levels last hit prior to the Japanese earthquake.
Many gold investors are getting poorer, ironically, by waiting for a collapse of the dollar to make them richer. While a fall of the dollar against gold makes those around you poorer, it doesn’t make you richer.
The recent tragedy in Japan should remind Americans of what is, and perhaps more importantly, what is not worth worrying about. Preparedness counts, of course, but so does perspective.
On Sunday, February 20, the first of 2011’s seven state parliament elections in Germany took place in Hamburg, an independent city-state and Chancellor Merkel’s hometown. The CDU, Merkel’s party, suffered a crushing defeat, winning just 21.9% of the vote against the 42.6% the party captured in 2008.
Russia is one of the few large economies in the world that stands to benefit from recent global events and higher global energy prices.
Physical demand for gold and silver is strong as investors seek protection of wealth against uncertainty in the Middle East. It has already been reported that Col. Qaddafi has been a wise gold investor, preparing for this crisis by hoarding a large amount of the precious metal to fund his military and to hedge against economic sanctions.
The market has shown a great deal of resilience this year. Political upheaval, natural disasters, oil supply disruptions are just a few of the negative headlines we have had to deal with. The market has weathered several body blows, and we aren’t yet through the first quarter. We all took a few massive left hooks a couple of weeks ago.
The TV is crammed with industry folks and analysts calling for the oil price to fall $20 or $30 per barrel. They argue there is a geopolitical risk premium that is part of the current price. They may be right, BUT no one knows how to measure a "geopolitical" risk premium. We can only guess at it.
The structural flaw at the heart of the E.U. dooms it and the euro to either dissolution or radical transformation.
To understand the structural flaw which dooms the European Union, we need to start with the Union's fundamental financial characteristics.
The Federal Reserve is not only the most profitable company in the world, it is now the largest in terms of earnings. How did society get so dumb to let this happen?