“The S&P will continue to improve.”
“Lot’s of good buys here. Market rotation suggests industrials.”
“Don’t buy industrials.”
“Best Quarter since 1998.”
“There is a lot of risk going forward.”
“This wave is not over yet.”
The above chatter from CNBC on Friday [...]
The Daily Capitalist welcomes new contributor John Butler of Atom Capital in London. John has 18 years’ experience in the global financial industry, having worked for European and US investment banks in London, New York and Germany. Prior to founding Amphora Capital he was Managing Director and Head of the Index Strategies [...]
Jim Rogers on the state of the world.
“With the US economy showing signs of recovery and fears about the eurozone sovereign debt crisis easing, investors are putting their money into equities and other assets geared towards economic growth rather than havens such as gold.”
— Jack Farchy, Financial Times, 23rd March.
“Growth gloom bolsters government debt
Despots and democratic majorities are drunk with power. They must reluctantly admit that they are subject to the laws of nature. But they reject the very notion of economic law … economic history is a long record of government policies that failed because they were designed with a bold disregard for the laws of [...]
The March silver futures contract first entered backwardation on Mar 9 and with a few zigs and zags has not only remained there but has gone deeper and deeper in. The April gold future just entered backwardation today. See the graph (backwardation is when (Spot (bid) – Future (offer) > 0).
We shall see [...]
A “little” inflation will destroy capital, rob you of your savings, disrupt all of your long-term financial planning, create market instability, and leave you unprepared for retirement. You can protect yourself and you must.
The Bureau of Labor Statistics released their official Consumer Price Index for February on Friday (up 0.4% MoM; up 2.9% [...]
“We have involved ourselves in a colossal muddle, having blundered in the control of a delicate machine, the working of which we do not understand.”
— John Maynard Keynes.
An engineer, a biologist and an economist are washed ashore on a desert [...]
No government has ever commanded the resources at the disposal of our ungodly Leviathan, which consumes about 25% of the product of the world’s richest country. It is driven by a voracious alliance of government’s own employees, and those who receive benefits from the state. At least 90 million Americans either [...]
Sir Mervyn King, Governor of the Bank of England, appears to have had a meeting of the minds with Ben Bernanke, not surprising perhaps given they had adjoining offices at M.I.T. back in their academic youths. The Telegraph reports:
Sir Mervyn insisted he understood the problems facing savers, but made clear he believes he can [...]
Playing with expectations works temporarily. The risk-on trade is in a mini bubble, as today’s, buyers want to be ahead of the slower ones. The buying trend is sustainable only if the global economy strengthens, which is unlikely. The stocks aren’t cheap. Desirable consumer stocks are selling for 20 times earnings. Banks are cheap [...]