U.S. Treasuries

Is it Time to Sell U.S. Treasuries?

I am getting awfully close to shorting U.S. government bonds. The debt crisis in Europe is heating up, and I foresee a domino effect globally. I still believe the U.S. crisis will hit last, but this doesn’t mean Treasuries have to rally the entire time. Sooner rather than later, there will be a tradeable long-term top in U.S. government bonds. I don’t think people understand how grave the situation in…

The Declining Confidence of Americans

I account for the real possibility of civil unrest when I make investment decisions. Civil unrest is one of those things that will have an inordinate effect on the gold price. If gold has come this far from good old government mismanagement alone, imagine how high it can go if Americans protest. It has been quite some time since protests due to a weak economy were even a remote possibility….

Record Job Cuts in States

In further evidence that our economy is in the process of slowing, states are projected to make┬árecord job cuts in the 3rd quarter. As I’ve said before, states in the U.S. are indistinguishable from Greece. The arguments that the U.S. won’t suffer a huge crisis since we own the reserve currency and can print our way out of this just do not apply to the states. States need to balance…

Extremes in Assets Developing

If you haven’t noticed, I love trading in extremes. It really doesn’t matter what the asset is or if we are talking about extreme bearishness or extreme bullishness. Extremes are when you can buy or sell assets at favorable levels because people lose their senses. Extremes are great because you can see them developing from a mile away. Usually extreme asset moves culminate in either a spike low or a…

Real Estate for Boomers

Yesterday I posted an article on my facebook page about how banks were building a real estate empire of foreclosed homes. As we all know, banks are in the business of making loans, not owning and managing homes. Although home prices have dropped considerably, the housing crisis is still alive and well. Here’s a graphic from the article that will help you to visualize the foreclosure crisis: The way I…