Debt Crisis

  • bubble

    Are All Assets a Bubble?

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  • buzzy

    Is the Timing Right for a Gold Rally?

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Why Cash Is King

In investing, the hardest thing to do is nothing. There is always the hot new stock or sector that demands our attention. In investing as in life, the hardest thing to do is usually the right thing. Significant trends, where the big money is made, always appear to be moving in slow motion. This is what we’re seeing in the U.S. dollar. The fundamentals were in place long ago for the…

Let the Capitulation in Gold Begin?

Since my last post, gold has dropped over $60 in a matter of weeks. This is not good, especially because the “mandatory” dollar rally appears to have arrived. To review, the dollar became the carry trade currency of choice due to artificially low interest rates. This creates a situation where the slightest uptick in the dollar forced investors to buy back dollars to unwind their trade. This, of course, leads to…

U.S. Stocks: The Only Game in Town

There is widespread disbelief of this rally in U.S. equities, which is exposing myths about stocks. One such myth is that equities are tied strictly to economic growth. This intuitively makes sense, but the market does not care what we think should be true. Remember, equities rallied over 300% from 1932-1937 in the midst of the Great Depression. Warren Buffett understands this phenomenon, which is apparent from his Op-Ed in the New…

Gold: It Is Not Time

I was at a used bookstore  the other day perusing the business and investing section when I saw a couple of books about the next Great Depression of America. Of course I had to take a look. The arguments in these books were pretty sound, and I nodded my head often…. that is, until I realized these books were from 20 and 30 years ago! These authors (still doom and gloomers today)…

The Cost of Being a U.S. Citizen

I’ve written before about the record number of people choosing to renounce their citizenship. Well the cost of  renouncing your citizenship just went up over 400%. This isn’t a coincidence- the government knows about the crisis that’s coming. They are on a crazed hunt for revenue that is going to prevent a quick recovery. We are on the path to a drawn-out Japanese-style lost decade at best. For now most people have no clue what’s going on; these…