Debt Crisis

bubble

Are All Assets a Bubble?

Over the weekend I read a Wall Street Journal article about how all assets – bonds, stocks, gold, commodities- were rising and how this was a) an anomaly and b) how it reflects confidence in Central Banks. I got a good laugh out of this because rising domestic asset prices reflect the exact opposite; namely an utter lack of confidence in Central Banks. Are wealthy Europeans purchasing high-end real estate in…

books

To Become a Great Investor You Must Read (Plus Reading Recommendations)

I believe without a doubt we are on the brink of a crisis that will make the crisis of 2008 look like no big deal. There’s plenty of time for me to lay out the case, and I’ll do that in future posts. Today, I wanted to focus on the topic of becoming a successful investor. In the past, I’ve touched upon my views on how to become a great…

buzzy

Is the Timing Right for a Gold Rally?

The biggest problem most investors have is timing. I think a price target of $3000 is conservative, but this does not mean I am backing up the truck yet. A retest of highs is likely as far as I’m concerned, but I am still not going all-in for a 12% gain. I believe there will be better entry levels. This is not the all-in moment in gold. The all-in moment…

The Paradox of Investing

Investing is filled with paradoxes. For example, there is a big difference between the domestic and foreign exchange of real estate. When real estate changes hands domestically, it is not necessarily inflationary because we are talking about internal transfers from one bank account to another. If foreign capital comes to America, it is effectively new money that is inflationary. I am making a bet on real estate in part because I believe…

QE

The Market Implications of More QE

It has been an interesting couple of days. The move by the Fed to buy longer term bonds evidences the debt crisis that is unfolding as investors were shortening their maturities. No one in their right mind is buying 30 year government paper in the midst of a debt crisis; hence the Fed’s need to step in. People are scratching their heads right now at the movement in stocks and…