Summer is officially here. The kids are out of school and families are beginning to embark on summer vacations. Everyone is in a good mood, particularly investors when looking at equity put to call ratios.
Since we have already seen nearly six years of ultra-low rates, how much longer can they last? Given the magnitude of the crisis, record levels of unemployment and debt, the best way to answer that question is by observing what the Fed did during a similar time period—the Great Depression.
Something extraordinary occurred last week. On Wednesday, the Fed made a routine announcement. That day, the price of silver was rising, but not out of the normal. Fireworks began last Thursday, and in 6 hours, the price of silver skyrocketed by 5%.
After things went off the rails in 2008-2009 the era of the perma-bear guru business started. In the tech bubble, the more obscure the tech name and esoteric the technology, the higher the price target placed on it. That worked until it didn’t. After the last meltdown, humility certainly was not a characteristic of the next leaders in the newsletter writer sweepstakes.
Marc Faber says our society has become so technologically dependent that military drafts are no longer possible. Don Coxe sees recent geopolitical events as coordinated moves between China, Russia, and Iran. Eric Janszen outlines what may lead to another major crisis and, lastly, Keith Weiner explains a largely unknown driver of massive gold imports into China.
It was a very interesting setup leading into the Fed meeting this week. The Consumer Price Index (CPI) has been rising as of late. Expectations were that the Fed would tighten its language over interest rates and inflation as a result of the recent climb of CPI.
With the Fed committed to zero interest rates, significant moves in the stock market and economy are now largely influenced by changes in inflation. With four months now of accelerating inflation data, there is a heightened risk of an intermediate market peak and correction by the fall of this year.
Commodities are the most basic economic goods, providing essential inputs into progressively more complex goods at advanced stages of production. Yet the economic mainstream generally fails to understand commodities, treating them as distinct from the processes whereby they are created and...
In a recent interview with Financial Sense Newshour, Craig Johnson at Piper Jaffray explains how there's far less stocks available to buy in the market today compared to the tech bubble, even though the amount of money has grown immensely with central banks around the world engaged in quantitative easing.
In a recent interview with Financial Sense Newshour, the notable Fed-critic and contrary investor James Grant says India is likely to be the world's next great growth story. He also sees value in gold, gold mining shares, and Russia's Gazprom.