Yesterday's FOMC statement can be read in its entirety. Just as we noted yesterday, it contained no surprises. Essentially it was a carbon copy of its predecessors, although it adopted – not unexpectedly – a somewhat more cautious tone regarding the state of the 'recovery'.
Where are investors to turn for profits? U.S. and global stock markets are in corrections, producing losses for investors, and they do not look like their declines have ended yet.
So far, 2011 has been another good year for gold. Yet the same can’t be said for gold mining stocks. There are several reasons why, from the weak dollar to the popularity of exchange-traded funds. But one of the main problems is the mining companies’ tendency to fall for slick sales patter, reckons Dominic Frisby.
This week, in the second in a series of less-than-impressive press conferences, Fed Chairman Ben Bernanke offered market observers little hope that any additional quantitative easing programs are on the horizon. The Chairman continues to cling to the position that the economy is improving (with the recent "soft patch" attributable to external forces) to the extent that additional Fed support will be unnecessary. Left unsaid was any guidance as to who the Chairman believes will buy the massive amounts of Treasury debt formerly swallowed up by the QE II program?
The following is a partial transcript of my interview with legendary investor and analyst James Dines. Some of the topics discussed related to rare earths are its importance for alternative energies, like wind and solar, and fundamental factors driving prices higher.
The Weekly Leading Index (WLI) Growth indicator of the Economic Cycle Research Institute (ECRI) declined to 2.9 from last week's 3.6 (a downward revision from 3.7). This is the ninth consecutive week of decline from the 11-month interim high of 7.8 for the week ending on April 15.
Russia loves being in control of other countries' energy needs. The nation supplies a quarter of the natural gas consumed in Europe, owns 40% of the world's uranium enrichment capacity, and rivals Saudi Arabia for the top spot on the list of global oil exporters.
The best weapon the amateur investor possesses to protect himself from stupid or ill-conceived action is technical analysis. For instance, if you own a stock, and you watch your stock "walking" up and above a rising moving average, then as long as that action continues, the amateur knows he's on the right track. But the higher the stock climbs, the more enthusiastic the amateur becomes.
There’s a saying in Chile: “La vaca engorda bajo el ojo del amo” —“The cow grows fat under the watchful eye of the owner.”
I’m surprised by the move by the President and the IEA. What’s this about? Is it about the price of oil? Before the announcement WTI was sitting around 95. That’s a solid $20 lower than it’s peak eight weeks ago. Why would Obama & IEA act today? A very big price adjustment has already been made.