Buy the Gold Dips?

As we approach the end of the year, the outlook for the global economy is murky, but the outlook for gold remains strong. That being said, I think gold will at least retest its all-time highs in the next couple of months. I am adding selectively to gold stocks, but I will probably lighten up as we approach $1900 and $2000. Long before there was any clear direction in gold,…

The Inevitable Contagion

We are on the verge of severe political and social volatility, and we are ill-prepared for it. No doubt Keynes if he were alive would pen a sequel to the “Economic Consequences of the Peace”; perhaps he would call it the “Economic Consequences of Government Stupidity”. Our leaders have had over 3 years now to think of ways to get out of this mess, and there are no intelligent ideas…

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…

Another Great Depression

I’ve been getting a lot busier lately, so I haven’t had the time to ponder larger issues, but when I do get the chance to think about our future, I get very concerned. This crisis will affect our whole generation, much like the Great Depression affected people from that era. This is why they were buying bonds even though America was embarking on one of the great economic booms in…

Stocks Can Rally In A Recession?

Hey all. Just wanted to apologize for the site being down the past couple of days- I’ve been having some technical difficulties. To access my content in case the site goes down again, I recommend subscribing for email notifications on the right sidebar (if you haven’t already). Anyway, back to matters of the economy. People are just confused by what’s happening now. GDP figures come in relatively strong and corporate…

Stocks on a Roll, Surprised?

Don’t look now, but stocks are in the midst of their biggest one-month gain since 1987. I’ve always said that the moves in markets won’t make sense logically. Throughout this panic about the debt crisis and Europe, I’ve consistently said to buy the dips in stocks. I am the biggest bear out there, but I understand that economic conditions aren’t the only driver of asset prices. Where is capital flowing?…

gold1

Gold to Retest Highs?

If there is anything I’ve learned over the years of trading/investing, it is to fade the crowd. When gold was rallying to all-time highs, I was warning of a¬†monster correction. This wasn’t a “rational” call since the debt crisis in Europe was intensifying, but then again, markets are not rational. You must feel out markets and go with your instinct You must constantly adjust your forecasts to account for price…

What Does a Collapse in Confidence Mean?

As we so obviously descend into the abyss, I still feel this is a crisis people don’t quite grasp. I’ve said from the very start that this is not only a debt crisis, but also a crisis in confidence. Case in point: A recent poll¬†shows Americans’ approval of Congress is at an all-time low of 9%. Believe me, we are in unprecedented times and a 3rd party candidate will win…

Gold and Precious Metals

Gold at Inflection Point

I am really enjoying the volatility in markets, which I believe will lead to a short-term bottom in gold, silver, and stocks, and a long term top in U.S. Treasuries. The great thing about markets is that you are constantly receiving information. Last week I put out a feeler bet in gold. What followed was a pretty decent rally that had gold testing its all-time highs. This morning we experienced…

Will Higher Interest Rates Derail Gold?

Over the past couple of years, a lot of popular theories related to the demise of gold have been proven false. A popular theory in 2009 was that a “green shoots” economic recovery would cause gold prices to collapse. That was a good one. Then there was the popular “contrarian” argument that the real threat was deflation, and that gold would sell off as a result. That theory is now…

Is Gold Flying Under the Radar?

It’s hard for Americans to understand that gold is an asset that reflects global confidence, not just confidence in America. So arguments against gold that are focused just on America are not entirely valid to me. Even if we solved our debt problems, which is unlikely, there still would be huge sovereign debt crises in the Euro zone and Japan. Although gold would not rise as much as it would…

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…