Institutional investors tend to prefer investments that are thought to contain the potential for growth, growth = sprouts. An investment has to produce a growing revenue stream - if it doesn’t grow it doesn’t compound. Gold is rejected as an investment because it doesn’t produce sprouts, meaning the steady income and systematic growth so sought after by institutional investors just isn’t there.
To fully understand the Eurozone's financial-debt crisis, we must dig through the artifice, obfuscation and propaganda to the real dynamics of Europe's "new feudalism," the Neocolonial-Financialization Model.
Facebook was the most over-hyped issue I have seen in the past 20 years. That’s saying something, because new issue pump and dumps are the norm.
The other day the IRS announced new rules for settling tax liabilities for individuals. It’s a sweet deal. I thought that was interesting. Then yesterday we get an announcement from Altria (MO) that they too have cut a deal with the boys at the IRS. Coincidence? Leading indicator?
There’s been a lot of excitement in the past year over the rise of North American oil production and the promise of increased oil production across the whole of the Americas in the years to come.
Under current law, the federal budget deficit in fiscal year 2013 will show a drastic decline from fiscal year 2012 as a result of scheduled increases in taxes and reductions in government spending. The Congressional Budget Office (CBO) estimates that the federal budget deficit of $1.17 trillion in fiscal 2012 will shrink to $612 billion in fiscal 2013.
A month ago we warned that AAPL($602) had broken down from a parabolic rise. Despite near universal love for this stock, the failure of that pattern was a warning that a much lower price was the destiny for this purveyor of electronic toys.
We would equate the current market environment to the events that precede a declaration of war. Prior to the declaration markets sell off due to the fears of uncertainty that precedes the breakout of hostilities. Once the war begins, and the bombs start dropping, the market stages a recovery because it is the beginning of the end. That is where we are now.
Four years ago, when I was still chief economist at CIBC World Markets, I forecast that global economic growth was on pace to send oil prices to $200 a barrel by 2012. In short, the argument was based on a supply-driven analysis that weighed...
Currently there is a lot of disparity between behavior in stocks and the outlook for the US economy. Sooner or later these two will have to come into line.
