Inflation

Disagreeing With Deflationists

The ability to change your position at the blink of an eye is very important in investing. While you all know I am a gold bug, I would turn bearish on gold if we found a mounumental gold mine that quintupled the supply of gold. Yes gold will still be an anti-government trade. Yes gold will still be a currency. However, the massive supply spike in gold will probably counteract…

Rising Assets in a Downturn

As someone who shuns economic orthodoxy, I’m sure I say a lot of confusing things. When I view the economy, I try to be as objective and independent-thinking as possible. I don’t label myself and then pull out a checklist of everything I’m supposed to be bullish or bearish on. I mentioned yesterday that I believe not many people are going to invest profitably in the turbulent years ahead; and…

Gold and Inflation

It’s interesting that when I state a fact that gold is not an inflation hedge I get so much flak. This just shows you how close-minded a lot of people are and why it is easier than you think to make money investing if you are objective. I don”t understand why I must believe gold is an inflation hedge to be bullish on gold. Yes gold will probably rise along…

No Signs of Deflation

The 1st quarter is coming to a close today with some interesting results. The Dow is up 6.6%, oil is up 17%, and gold (the ultimate  “bubble”) is up 2%. As you can see, these are some truly explosive moves in gold relative to other assets, so the popping of the bubble must be near! All kidding aside, these asset movements clearly indicate that an inflationary trend is upon us. I have…

Real Estate Depression Continues

The real estate market holds the key to an economic recovery. More people invest more of their life’s earnings in real estate than in other asset class. Stocks can rise 100% in a year and people are still justified in questioning the economic recovery. If home prices rose 100% in a year, economic activity would reach a feverish pitch. Housing should be your focus because it is the government’s focus…