After what has likely been a painfully long stretch of one way road, it appears that our furry friends may have spotted the one road sign they've been aching to find on their journey: Two Way Traffic Ahead. As we've been saying for many moons now, the current one-way market is indeed rare. This type joyride to the upside has definitely happened before, but it has also clearly confounded anyone expecting to see a more traditional two-steps-forward-and-one-step-back type of bull market environment.
The Silver Train. Are you onboard? Just about six weeks ago, at the January highs for Silver, the average daily movement for Silver was about 50 cents a day. What is it now? It’s 50 cents an hour!
An interesting article from the Sydney Morning Herald regarding Hyundai. HY is the fifth largest producer of cars globally. A solid Korean company. Of interest is that the company changed its articles of incorporation last Friday in order to...
Good morning friends! In the news today: The showdown between the unions vs. taxpayers continues in Wisconsin, tensions continue to flare in the Middle East, and more…
Perhaps we are beginning to discover that if we look not only to U.S. interest, but also to the interest of poorer nations, we find that their best interest is in our best interest.
Last week, the Financial Crisis Inquiry Commission (FCIC) presented its results to the Financial Services Committee. As with most other politically-appointed commissions, the results of the FCIC's investigation were easy to predict. Established by the same congress that gave us national healthcare and with a majority of its members appointed by those who seek to solve every problem with more government intervention, it was no surprise that the commission's findings would favor increased government intervention in the economy.
Bernanke is playing a dangerous game of dominoes.
The following is commentary that originally appeared at treasurechests.info for the benefit of subscribers on Tuesday, February 8th, 2011.
Factors that should contribute to this outperformance include (1) an accommodative monetary and fiscal policy, (2) investors returning to the equity market (see note below on the ‘torrent’ of funds returning to the equities market), (3) reasonable valuations of stocks in the sector, (4) a positive and improving business outlook, (5) price momentum/persistence/relative strength in the equity markets, and (6) merger, acquisition and deal making activity.
In the long term, QE2 is obviously not a sustainable course. Nonetheless, QE2 can continue as long as (1) the United States remains politically stable, (2) the U.S. dollar remains the world reserve currency and (3) the value of the U.S. dollar strengthens, remains flat or decays in a controlled manner, i.e., at a relatively stable, gradual rate. Although Bernanke clearly believes that the risks are contained, the Federal Reserve’s policies are, in fact, debasing the U.S. dollar and have already guaranteed the end of the U.S. dollar as the world reserve currency.