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higher interest rates
While it is true that the average consumer isn’t (and won’t soon be) spending as much as he used to, it’s not because he’s waiting for bargains. No, it’s because he’s out of credit, he’s unemployed, his house, car, motorcycle, boat, and plasma television have all either been repossessed or foreclosed upon, and his wife just left him. He’s not exactly in the mood for shopping. He’s not waiting for bargains. He’s waiting for a miracle – and I don’t think they sell those at the mall. Words: 1582
August 15th, 2011 | Posted in Economy,Inflation/Deflation | Read More »
At the beginning of 2011 USA Today reported…[that] Ned Davis Research says the S&P 500 will make a run at the 2007 high of 1,565, hit a “midyear peak” [and] then it will crash as interest rates rise…concluding that “the midyear peak could mark the end of the cyclical bull market that began in March 2009 and the start of a new cyclical bear market.” Words: 637
July 30th, 2011 | Posted in Investing,Stock Indices | Read More »
You think the problems are bad now? You wait until we don’t have any more credit. You wait until the currency is collapsing. You wait until interest rates are going through the roof and inflation is going through the roof. It’s not going to be a pretty picture. There will be social unrest. [See below for the link to the interview.] Words: 477
July 29th, 2011 | Posted in Economic Overview,Economy | Read More »
Right now, interest rates are near historic lows. The U.S. government is able to borrow gigantic mountains of money for next to nothing. U.S. consumers are still able to get home loans, car loans and student loans at ridiculously low interest rates. When this low interest rate environment changes (and it will), it is going to absolutely devastate the U.S. economy. Without low interest rates, the U.S. financial system dies. [Let me explain.] Words: 1529
July 14th, 2011 | Posted in Debts/Deficits,Economy | Read More »
To move up from the current 12,600 level to 20,000 by the summer of 2014, the Dow would need to rise about 16.5% each year or about 58% in a three-year period and in the past 25 years the Dow has risen by this much on at least 13 occasions. During those times, there was only one period of sustained annual gains, when the Dow rose an average of 26% from 1995 through 1999. The key question: what would it take to justify a three-year, steady, robust gain? It all comes down to corporate profits [and the extent to which] multiple investors are willing to assign [dollars] to these profits. [Let me explain.] Words: 761
July 10th, 2011 | Posted in Investing,Stock Indices | Read More »
While Washington debates raising the debt ceiling and cutting spending to achieve $1 to $2 trillion of savings over the next decade, it’s worth pointing out that these savings may never materialize because the existing official budget numbers are too optimistic across several fronts. [Let me show you some numbers that will both surprise, concern, and enlighten you.] Words: 1070
July 1st, 2011 | Posted in Debts/Deficits,Economy | Read More »
Corporate America has been flying high since the recession, barely looking back since March 2009. The 70% rally in the S&P 500 in just under 2 years has been astounding to say the least – but are we really in 70% better shape as a nation since March 2009? No way! The dollar has continued to decrease in value, investments that feed off fear like gold and silver have soared….housing prices are still as low as in 2009, when they “crashed.” The signs of a major market correction…[are] right in front of us… no one seems to notice [but I do]. I believe we could soon experience a market correction of from 15% to 20%. Let me explain why. Words: 913
June 10th, 2011 | Posted in Investing,Stock Indices | Read More »
Inflation is the big ‘sword of Damocles´ hanging over our heads and the higher interest rates that may arrive with it over time. We believe that one of three scenarios is probable in the months and years ahead and in this article we provide a summary of these scenarios and give a brief glimpse into the respective investments/asset classes that we consider most suitable in each scenario. Words: 1331
April 24th, 2011 | Posted in Asset Allocation,Investing | Read More »
In the long run developments in the financial markets and around the world seem to conspire to whip up a perfect storm for the gold price, taking it up towards $2,000 and further. That new upleg, however, could very well start from a much lower level than now. There are quite a few developments that could easily send the gold price lower in the coming months. Is $1,200 in the cards? Words: 774
April 1st, 2011 | Posted in Gold/Silver,Investing | Read More »
2012 is shaping up to be the blockbuster main event of the ongoing financial crisis. Massive amounts of new debt, vast quantities of additional digital dollars and the spark of higher interest rates will set off version 2.0 of the credit-driven financial implosion. Let me explain. Words: 1954
March 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
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