This Man Thinks the Stock Market Could Fall 70%
Region: MarylandMeet Albert Edwards, an investment strategist for Societe Generale (or "SocGen" for short). Though SocGen is a French bank, Mr. Edwards is based in Britain. It is there he has developed a reputation as "the City of London's best-known permabear" (via The New York Times). Also via the NYT, Mr. Edwards has called for "a stock market collapse of at least 60 percent, followed by years of inflation of 2... more
Views: 591The Next Market Bubble Is Forming and No One Sees It
Region: MarylandThe mass media is obsessed with bubbles. They see market bubbles everywhere, like in crude oil, soft commodities or China... Granted, there are some serious issues with all three, especially with China and its consumption of the other two. According to a report from a colleague of mine, there could be something happening with regard to China and its crude oil that could have a larger impact than what mainstream media ... more
Views: 679Why Gold Does Well Other Investments Don't
Region: MarylandI came across another anti-gold column this week. The author doesn't spring to mind, but the gist was easy to recall. It was the tired old argument that "gold is not an investment" because you can't value it like a traditional investment. Because gold does not have cash flow, or offer some form of intrinsic asset comparison, it has to be a "speculation." (With speculation implied as a dirty word.) ... more
Views: 591The Phantom Growth of China's Ghost Cities
Region: MarylandBloomberg has a new video series out called "China's Ghost Cities." (You can watch the first segment here on YouTube). The reporter, Adam Johnson, describes how the Chinese government is building massive cities that no one lives in yet. The expectation is that China is going to "grow" into these cities. A remarkable idea, really. The authoritarian planners in Beijing or wherever decide it would be go... more
Views: 1727Divergent Growth Rates Could Tear the Eurozone Apart
Region: MarylandDo you hear that ripping, tearing sound? It is the duct tape of the eurozone being pulled apart at the seams. Last week, first-quarter growth rates came in for the various euro-area economies. France and Germany, two "core" countries, were impressively strong. Both surpassed growth estimates. Germany in particular is a growth powerhouse. The periphery countries, however, are in a world of hurt. (No surprise there.) D... more
Views: 799Gasoline Futures -- Flash Crash du Jour
Region: MarylandThe "flash crash" phenomenon seems to be going around. Last week marked the anniversary of the first flash crash -- May 6, 2010. That was the day some high frequency trading (HFT) algorithms went haywire, sending a slew of large-cap stocks like Procter & Gamble (PG:NYSE) down 30% in the space of minutes. This year, crude oil experienced its own flash crash on Thursday, May 5, as the futures dropped $10 per ba... more
Views: 867The Silver Lining in the Real Estate Thunderclouds
Region: MarylandIn fact, I'd like to dedicate this to a reader (and new Millionaire's Circle member) by the name of Vincent M. He joined about the same time Japan had its rumbles. In other words, the world (including the Earth) was correcting and he was stepping right into the mix. So, Vincent M., while equities have been less than kind to you and everyone else over the past 60 days, let me point you in the direction of ... more
Views: 696Is It Time to Buy Silver?
Region: MarylandUnless you have been hiding under a rock, you probably know that silver has had a major correction over the past week. The precious metal plummeted about 30% from a high of almost $50 an ounce to less than $35 yesterday. This six-day drop is one of the largest since 1983. Silver has given back just about all of its gains for the past month and some traders are thinking it might be time to get long. But before you run ... more
Views: 988Should You Stay Invested in Finanical Stocks?
Region: MarylandWarren Buffett held a press conference on Saturday in Omaha, Neb. He answered questions about the trading scandal with David Sokol and Lubrizol. The public has been really focused on this story. No surprise, really. David Sokol was on the short list of people who could take over for Buffett when he retires. But there was another announcement that might be more important to investors. ... more
Views: 422What We Learned From Ben Bernanke's Speech
Region: MarylandFed Chairman Ben Bernanke held his first press conference after a Federal Reserve meeting... ever. Traditionally, the Fed releases minutes to the meeting about three weeks later. That's not what other central banks do around the world. Most give a press conference. And now the Federal Reserve will be giving these conferences after every meeting. It's an effort to offer a clear view into their decisions. ... more
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