Financial Sense Newshour
Jim welcomes John Butler from London, Amphora’s CIO and author of The Golden Revolution. John notes that central bankers are not taking accountability for their mistakes, which is leading to unintended consequences. He also sees the concentration of wealth continuing to grow in the financial sector, as "too big to fail" institutions grow ever bigger. John also believes we will see banks begin to charge fees on deposits at banks, as banks pass along higher fees on cash charged by the Federal Reserve. As to gold and commodities, John sees hard assets as the most undervalued sector today, with gold more underpriced today than during the financial crisis of 2008. He stresses that investors need to own hard assets, but exercise extreme due diligence when choosing commodity funds or ETF’s.
Jim welcomes back Marin Katusa, Senior Market Strategist at Casey Research to discuss energy and political tensions in Saudi Arabia. Marin sees the aging Saudi royal family in jeopardy, and losing support with the Islamists in Saudi Arabia. If the House of Saud were to fall to the Islamists, Marin sees the possibility of $300 oil. He also believes there are currently unrecognized opportunities in energy equities.
Jim welcomes back Bud Conrad, Chief Economist at Casey Research. With the Fed now committed to open-ended Quantitative Easing, Bud believes investors need to own tangible assets, with gold and silver topping the list. He also thinks it may be time to consider investing in real estate once again. Bud also warns that the Fed’s easy money policy is going to translate into significantly higher inflation eventually, leading to the potential for civil disruption.
Jim welcomes back technician Ron Griess, founder of The Chart Store. Ron and Jim discuss some of Ron’s charts that illustrate that US debt is not contracting, but in fact total credit market debt in the US is still growing, reaching a new record high of $55 trillion in the second quarter of 2012. Conversely, household net worth peaked in 2007 and household real estate values are down 25.8% since the peak in Q4 of 2006. Also in this segment, Ryan Puplava has this week’s Market Wrap-up and Rob Bernard looks at the credit markets in the Fixed Income Report.
In the first segment of this week’s Big Picture, Jim takes an in-depth look at the so-called Fiscal Cliff that is due to arrive in January 2013. Jim discusses how we got to this point, and what it means...
In this segment of the Big Picture, Jim begins with “Don’t Fight the Fed”, and discusses the recent decision by the Fed to move to “open-ended” Quantitative Easing, spending $40 billion a month buying mortgage-backed securities, indefinitely.
In this week’s edition of The Lifetime Income Series, Jim offers a retirement planning case study on the factors that go into taking a lump-sum distribution or...
Jim welcomes back JKC de Courcy, Chief Executive of Courcy’s Intelligence Service in London, and publisher of Courcy’s Intelligence Brief. Mr. de Courcy sees more evidence of an Israeli strike on Iran ahead, and likely without any assistance from the United States.
Jim is pleased to welcome back Brian Pretti CFA, Managing Editor at ContraryInvestor.com. Brian believes that the markets are now driven by Fed Chairman Ben Bernanke, and P/E multiple expansion is driving stock prices higher. Brian notes that the Federal Reserve is going for asset inflation, which should make investors in CD’s very nervous. He asserts that we are heading down an economic road with no return, and when the bond vigilantes finally revolt, they’ll be trading in paper for real assets.
Jim is pleased to welcome back David Rosenberg, Chief Economist & Strategist at Gluskin Sheff & Associates Inc. in Toronto. David discusses a new phase in monetary policy, as the Federal Reserve pushes investors out on the risk curve in seeking to reflate the American economy. David also looks at China, and mentions that it is one of very few countries that has room to ease and lower interest rates. He also notes that it’s a big mistake to underestimate China’s ability to grow. As to where to invest in this new monetary landscape, David lists gold, gold stocks, corporate bonds, dividend-paying stocks, and exposure to hard assets.