What would the optimal portfolio allocation in gold have been according to Modern Portfolio Theory over several different periods of time? This article has a look at how an investor could have combined gold and equities to enhance risk-adjusted returns.
Read More »Bonds & Gold Will Eventually Rally OR Stocks Will Crash – Here’s Why (+3K Views)
While the stock market is the only game in town - for now - stocks will not continue to out perform all other asset classes indefinitely. Eventually either bonds and gold will rally or stocks will crash very hard. It is one, the other, or even more likely a mixture of both.
Read More »Take a LOOK: U.S. Gov’t Debt Tracking of Rodrigue’s “Bubble Model” Suggests Treasury Bonds Could Be the Short of the Century (+2K Views)
The US Treasury Bond market is the longest unbroken bull market known to the financial world [thanks in large part to the Fed who is] buying up every penny of newly issued government debt. [In doing so] this issuance of debt is following the exact path of the Jean-Paul Rodrigue' "bubble model". Words: 290; Charts: 4; Tables 1
Read More »Believe It or Not: U.S. Treasuries Could Be Best Performing Asset Class in the Next 1-2 Years – Here's Why It's Quite Possible
Could U.S. Treasuries be the best performing asset class of the next one-two years? It's quite possible. I am sure this article is bound to stir up controversy, but I'd like to spend some time analyzing several drivers that could buoy bond prices in the coming months. Words: 1053
Read More »Dow 20,000 (and 2,000 for the S&P 500) Likely Within 5-10 Years! Here's Why
A new position paper by Seth J. Masters, chief investment officer of Bernstein Global Wealth Management, entitled “The Case for the 20,000 Dow” is startling. Masters maintains that the odds Dow will rise by more than 7,000 points - an increase of more than 50% - by the end of this decade are excellent. [Below is his argument for such a lofty expectation.] Words: 715
Read More »Dow 20,000 (and 2,000 for the S&P 500) Likely Within 5-10 Years! Here’s Why
A new position paper by Seth J. Masters, chief investment officer of Bernstein Global Wealth Management, entitled “The Case for the 20,000 Dow” is startling. Masters maintains that the odds Dow will rise by more than 7,000 points - an increase of more than 50% - by the end of this decade are excellent. [Below is his argument for such a lofty expectation.] Words: 715
Read More »Where Do U.S. Bonds Rank in Safety Compared to Other Countries? Not 1st, Not 5th, Not 10th, Not 12th, But…
Natixis, the French investment bank and asset manager has determined that the safest country - the country whose bonds are really risk-free - is Sweden, the only one to score a perfect 5. Where do the U.S., Canada, the U.K., Australia and other major countries rank. Take a look.
Read More »Current Distortion of Interest Rates is Unsustainable & Will Have Dire Consequences (+2K Views)
Interest rates have been manipulated to keep them extremely low in an attempt to stimulate the economy but...unless deficits are dramatically reduced.... interest rates will eventually rise and government interest expense will double or triple from the amounts being paid today. That potentially triggers a debt death spiral, where government has to borrow more than otherwise expected. It also raises the credit risk and could ratchet interest rates up again. It has happened to Greece, Portugal, Spain and other European countries already this year and could well happen in the U.S. too. Words: 595
Read More »Current Distortion of Interest Rates is Unsustainable & Will Have Dire Consequences
Interest rates have been manipulated to keep them extremely low in an attempt to stimulate the economy but...unless deficits are dramatically reduced.... interest rates will eventually rise and government interest expense will double or triple from the amounts being paid today. That potentially triggers a debt death spiral, where government has to borrow more than otherwise expected. It also raises the credit risk and could ratchet interest rates up again. It has happened to Greece, Portugal, Spain and other European countries already this year and could well happen in the U.S. too. Words: 595
Read More »Charles Nenner’s Cycle Analysis Predicts Dow to Peak in 2012 and Then Decline to 5,000 – and Much More! (+2K Views)
Charles Nenner has been accurately predicting movements in the liquid markets for more than 25 years, and his most recent cycle analysis predicts that the current stock market rally is going to last through Q2 and then begin a major descent in 2013 - with the Dow eventually reaching 5,000! Read on to learn how Nenner's unique system works and what he forecasts for commodities, currencies, bonds, interest rates and more. Words: 435
Read More »