In a global crisis sovereign debt fears have the ability to be contagious destroying investor confidence in the capital markets of troubled countries and the overall global economy alike and when confidence wanes, capital flees it is a surefire recipe for falling dominoes. That's especially true today in the wake of a deep global recession that has left many countries with bloated deficits and debt loads. Words: 707
Read More »Why a 'Crash Back' to Autumn '08 Lows is Likely By End of 2011
The key concern for analyzing trading/investing opportunities for the rest of 2010 is whether we are facing a major pullback or 'crash back' to Autumn 2008 or March 2009 lows, or to see markets continue in their “risk on / risk off” pattern of the first quarter. Words: 516
Read More »Check Out These "Hedge Funds for The Little Guy"
You've probably heard about hedge funds, those super-secretive private pools where millionaires stash their money. Yes, sometimes they blow up. But many hedge funds have a long history of good returns in all market conditions. They do this by combining sophisticated trading techniques with long and short positions in various markets. The problem is that the best hedge funds aren't available to everyday investors in small amounts. Words: 1078
Read More »Beware: Government Claim of Low Inflation is Just B.S.!
Our leaders in Washington are so detached from reality it begs the question, "What are they smoking?" I'm not talking about the insane amounts of spending that's going on in our capital, or even about the patently unpayable debts and promises they're making to all of us and our foreign creditors. Although I think these things, too, result from whatever drugs they're on inside the beltway I am referring the way Washington manipulates its official statistics. Words: 1107
Read More »9 Ways to Invest in the S&P 500 – With a Twist (+2K Views)
Many ETFs now present unique approaches to stock and bond investing by tweaking popular and widely-followed benchmarks. The very first ETF, the S&P 500 SPDR (SPY), remains by far the largest U.S.-listed ETF, reflecting investor familiarity with the underlying benchmark, but there are now approximately 30 other issuers now competing for a slice of this still-growing pie. Words: 789
Read More »IMF on China: Steady as She Goes!
While there will be some corrections in the medium term as Beijing tries to balance growth and inflation to curb potential bubbles these pullbacks should prove to be good entry points for long term investors. Words: 631
Read More »Believe it or Not: The Huge Federal Debt Burden Does NOT Threaten an American Debt Crisis
Looking forward, our formula for working out of the current deficit pattern would be to have the Republicans regain control of one house of Congress (but not both houses of Congress plus the White House). The economy fully recovers. I’m not ready to forecast surpluses to come, but I can envision the deficits coming down to reasonable magnitudes. Words: 1438
Read More »A Sustainable Recovery Will Necessitate Higher Taxes, Higher Savings, Stronger Dollar, Lower Standard of Living
The final phase will be a time of higher savings and flight back to the U.S. dollar, i.e. more aversion to risk. It's also a period that begins the healing of economies and it's driven by austerity. This means higher taxes, higher savings, a stronger dollar and a lower standard of living. In short, it's a period of rebalancing and rebuilding. Words: 555
Read More »5 Asia-Centric but Non-Chinese ETFs (+2K Views)
Since the economic recovery began, many investors have looked to Asia to drive growth and stimulate global demand. China has grabbed most of the headlines, as tremendous growth in the world’s most populous nation has essentially pulled this emerging market into a tie with Japan as the world’s second-largest economy. While China’s growth has been impressive, however, recent data releases have shown that Asia isn’t a one-trick pony. Words: 781
Read More »Forget the Doom and Gloom! TIPS Yields Say NO Inflation or Stock Market Decline
Real yields on TIPS are very good indicators of the bond market's growth and inflation expectations. Currently they are telling us that the bond market expects sub-par growth and no significant increase in inflation. Words: 401
Read More »