Financial Sense Newshour
In this week’s edition of The Lifetime Income Series, Jim discusses how to plan for incapacity, specifically looking into disability and long-term care options. In the next topic, Jim interviews Kevin Matsukado, Director of Safety and Security with Palomar Pomerado Health to discuss emergency preparedness at home and how to best plan for the unexpected emergency.
Jim is pleased to welcome Ian McAvity CMT, editor of Deliberations on World Markets since 1972. Ian sees all the Quantitative Easing by central banks as nothing but a banking bailout, and believes the world is heading toward a global currency crisis. Ian believes gold is the best investment alternative, but doubts the public will become engaged until the price reaches the $2200-$2500 range. Ian also believes the precious metals equities have bottomed, and gold is the key driver of silver. Ironically, the biggest current buyers of gold are the central banks themselves.
Jim welcomes back Kurt Wulff CFA, Independent Energy Analyst at McDep LLC. Kurt notes that in terms of new supplies of oil and gas globally, North America is currently the one bright spot. He also mentions that the foreign oil majors, particularly European, are a bargain, due to their focus on dividends versus stock buy-backs. For income investors, Kurt discusses where to invest now. For growth investors, he feels they should stick to shale and small cap names for now. In general, Kurt sees energy as still a good value, despite the recent rise in energy equity shares.
Jim welcomes Don Coxe of Coxe Advisors LLP to discuss the Commodity Super-Cycle. Don believes that because most commodities are no longer priced primarily by Europe and North America, they are less risky than conventional Wall Street economists understand. Don strongly feels that investors need to invest where the demand is, and will be, for coming decades. That means economies whose consumption of commodities per unit of GDP is still far higher than ours. Since 1998, Don has advised clients to "invest in companies which produce what China needs to buy."
Jim welcomes Axel Merk, founder of Merk Investments LLC. Axel discusses the potential risk to the US dollar, beyond the issues of the Fiscal Cliff. He also discusses three scenarios that put the bond market at risk going forward.
Jim is pleased to welcome back noted technician Charles Nenner, founder of Charles Nenner Research Center. Charles sees the S&P index close to another top and expects stocks to be lower over the next 12 months.
The title of the first topic on this week’s edition of the Big Picture is taken from a famous Paul Simon lyric, "A man hears what he wants to hear…and disregards the rest." This is part-two of last week’s Big Picture with John Williams, who questioned the accuracy of the government’s unemployment numbers.
In this week’s Lifetime Income Series edition, Jim focuses on the younger worker with many years to retirement and hoping to retire comfortably. Jim looks at ways that the younger person can plan now and use the advantages of time to build a sizable retirement nest egg. In the second segment, "From Gloom to Boom: Avoiding the investment bunker-mentality," Jim urges investors not to panic, and totally reorient their investments based only on fear and uncertainty.
Jim welcomes back Russell Napier, consultant with CLSA Asia-Pacific Markets. Russell sees bank credit contracting, and a dearth of borrowers globally. He also notes a weakening in money-supply growth among the emerging market countries, and money exiting China as labor costs rise dramatically. Russell believes the days of China funding the US budget deficits are over, and that the environment of "financial repression" will last for decades.
Jim welcomes back Dr. Peter Warburton, Director at Economic Perspectives Ltd. in London. Dr. Warburton offers nine compelling arguments for higher inflation coming our way. He sees global markets becoming more oligopolistic, leading to more concentration of production and higher prices. Dr. Warburton predicts the future will likely hold an agonizing cycle of false hopes and disappointments, which will repeat until the cycle ultimately triggers an uncontrollable inflation.