From a technical analysis perspective things don’t look promising for equities or precious metals for the next 4 weeks. Below is a look at various patterns – Symmetrical Triangle, Broad Market Instability Index, Three-Peaks and a Domed House, Bump-and-Run Reversal Top and Horizontal Channel – which tell the story. Words: 1200
As investors look for safe havens in a potential market panic, I am reminded of the adage, “In the land of the blind, the one-eyed man is king.” Today, I see several metaphorical one-eyed men in this land of the blind that could serve as safe havens were there to be a market panic. All of them have significant flaws. In this post I would like to discuss them one by one. Words: 780
Financial pundits have been cheering the declining U.S. trade deficit, but they should be careful what they wish for. Once the U.S. is no longer running a huge trade deficit, then all those exporter nations will no longer have hundreds of billions of dollars floating around, looking for a home in Treasury bonds. Interest rates are about to start rising, and will continue rising for a generation Words: 782
The bond market is signaling that rising prices are just ahead and you should be worried. Don’t be deluded into thinking that inflation “might be coming” in the future and that once you see the signs you can protect yourself. If you wait too long to take precautions, this silent thief will most certainly steal your wealth and savings. Words: 853
Secretly, the Fed is in a panic to ward off a bond market collapse! They know that, sooner or later, they MUST send the message that they’re serious about cutting back on their mad money printing. The danger of course, is that foreign investors will get an entirely different message: that Washington’s efforts to fight the most severe recession since the Great Depression are waning. If that happens, you could see turmoil — not just in the bond market, but in every asset class imaginable. Words: 770
Optimists expect mild inflation in a decent recovery. Pessimists fear the feds may have waited too long; they think they see higher rates of inflation coming. Here on the back page we see no recovery…nor any inflation. At least, not yet. Instead, we are blind. We see nothing. As for what is coming…a slow motion depression wouldn’t surprise us. Neither would the collapse of the public debt market. Words: 594
FACEBOOK
TWITTER