Inflation, Deflation, or Hyperinflation?

In the following post, I’m just going to make a couple of points concerning the inflation vs deflation vs hyperinflation debate. I’ll try to write something more thorough in the future. Americans often throw around arguments along the lines of “real estate is down, but commodities are up, so we have biflation.” Ok let me get this out of the way first:  U.S. real estate is a domestic market; commodities and…

Gold Investing

Since I am often asked by people how to invest in this gold bull market, I wanted to take some time to address these questions in a post. My main focus as an investor isn’t worrying about choosing between gold juniors, gold seniors, physical gold, or other minor aspects of gold investing. My primary concern is knowing that I am investing in the right asset class. If you pick the right…

Understanding the Big Picture

You are all starting to see that it is the rare person who can block out all the noise and objectively put the pieces of the puzzle together. People are so damn biased they cannot see the truth.  When it comes to the markets, I love it that people are biased, because this is exactly why 90% of people lose money. But in terms of the country I live in, the…

Let the Gold Rush Begin

The annals of history are littered with examples of collapsing confidence sending the public flocking to gold. A collapsing currency is actually the norm in history. I think back to the Romans and how rising levels of expenditures and taxation led to a debasement of the currency and an utter collapse in confidence.  I think back to John Law in France, whose moronic exploits as a central banker are rivaled by…

The Smart Money

From the inception of this blog, I have been trying to explain to you the psychology of the so-called “smart money.” Now the smart money is not the same as the big money. Pension funds are about as big as they get, but they are slow, behind the curve, and on the brink of entering crisis-mode. The smart money was the smart money first, then they became the big money….

Great Interview with Hedge Fund Manager David Tepper

I’ve actually never heard of David Tepper, but I like his style. Tepper apparently has a long track record of making 30% compounded annualized gains, which is pretty impressive. Tepper makes a couple of really great points in the following interview that I want to address. But first, here’s the interview. The first point I want to address is Tepper’s bullish stance on stocks. Being bullish on stocks has turned…

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Riding Bull Markets: The Difference Between Pros and Speculators

Most people do not have what it takes to crush markets. They complain that the stock market is rigged and that it is a form of gambling. This is mildly amusing to me since the very people who complain that stocks are a form of gambling are the same people who don’t read annual reports; don’t do their due diligence; know nothing about accounting; and get their investment advice from CNBC….

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Dollar Debasement and Gold

Economic events continue to play out more or less as I expected. Home prices have declined on a seasonally adjusted basis for two straight months, with prices down 3.3% year-over-year. New mortgage applications continue to come in weak amidst record low mortgage rates. Gold is knocking at the door of $1300. The dollar is weakening substantially and testing critical support. It’s pretty clear folks: the next round of this debt crisis has begun….

Gold and Precious Metals

Yamana: Thinking Trades in Gold

Investing is not only about finding the right stock or asset class, but also finding good entry points. This is especially true of a volatile asset such as gold. Knowing what timeframe you want to invest in is also critical, as gold often shakes out weak hands in the short-term right before huge upside moves. For Yamana Gold Inc. (AUY), notice how MACD has been a good indicator of both…

A Primer on Gold Stocks

Now that a generation of stock gains has been wiped out by the big bad Bear Market 0f 2008, investors are more skeptical than ever of bull market hype. Lets face it, in a bear market most stocks go down. Nonetheless, I believe there is a huge bull market brewing under the surface in gold stocks that will explode no matter what happens in the stock market. Gold stocks are…

Gold on the move?

Gold just spiked 15 dollars in the last couple of minutes, stopping at resistance at about 940. We’ll see what the Fed announces today. Apparently the market sees more quantitative easing in our future. When all the paper shorts in gold are taken out, you will see parabolic moves in gold. I will keep banging the table about this- we are still in the early stages of this bull market….

Gold: Accumulate before liftoff

If you follow the gold market at all, you know that days like today are normal. Gold falls out of bed in the overnight market, weak hands get shaken out, and gold bashers come out of the woodwork. Now take a look at this chart. Notice the 200 day is still trending and the 50 day has yet to be violated. We’re in a bull market folks. The longer gold…