U.S. Treasuries

Stocks Approach Critical Levels

I’m sure most of you recognize that once market sentiment gets extremely bearish, we rally powerfully. Well this is just the way markets work; they tend to revert to the mean. The S&P downgrades U.S. debt and people think the world is ending. Of course after markets rally people totally…

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…

The Stupidity of Raising Taxes in a Downturn

As I’ve said repeatedly, this crisis will make people’s head spin. The latest mind-boggling move is the rise in Treasuries following S&P’s downgrade. At first this is confusing, but remember this is a global crisis, and if global capital panics, only the Treasury market can handle all that capital. So…

Why Stocks Will Rally

Regular readers of this blog know that I like to take reasonable contrarian stances; I don’t go against the crowd for the sake of it.  That being said, I know people are turning bearish on the economy and stocks, especially with the current impasse on the debt ceiling issue. Although I’m…