Gold Price Fundamental 2012

October 22nd, 2011
in contributors

by Guest Author Andrew Butter

If the fundamental value of gold measured in US-Dollars wasn’t a mystery before; then the past few weeks have added another dimension to the confusion.

Supposedly gold is a “safe haven”, so when the rumors of Armageddon started circulating about the Euro, the price “ought” to have gone up? It didn’t, it went down…by 20%...so much for that theory. Is the latest story that the Euro-refugees figured the 10-Year Treasury was a better bet than gold…even after the downgrade?

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Gundlach: Markets Aren’t Cheap Enough Yet

October 21st, 2011
in contributors

by Robert Huebscher, Advisor Perspectives (bio end of article)

Jeffrey GundlachPrices for risky assets are straddling the extremes of two potential outcomes.  A “hurricane” may hit, in the form of a blow-up in Europe or a move to put the US federal government on an austerity program, driving prices lower.  Or world economies will plod along, in which case optimistic pricing makes sense.  But prices should be “truly cheap” against those parallel problems, according to Jeffrey Gundlach (pictured), and that is not yet the case.

The euro, for example, is now trading at 135, but could rise to 200 if the Eurozone breaks up and the euro is retained only by the core countries. Or, if the peripheral countries’ struggles are dragged out with ongoing bailouts, it could sink to par.

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The Great Escape, Part 2: New Update

October 20th, 2011
in b2evolution

by Chris Kimble of Kimble Charting Solutions

Originally posted at Advisor Perspectives/dshort.com

We witnessed a Great Escape from equities in 2008 when the dollar broke out and the CRX broke down. We have a near clone situation on our hands right now in the Dollar and CRX. I saw the first inklings of a second Great Escape this past spring, which occasioned my May 5th commentary (with a hat tip to Steve McQueen). And I shared an update in Great Escape II on September 9th.

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Click for a larger image

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Retail: Pain in the Middle

October 19th, 2011
in contributors

by guest author Dee Gill, an editor for the YCharts Pro Investor Service

retail1 September retail sales figures released Friday seem to indicate that consumers are too afraid to spend $150 on a new coat but happy to lay down $35,000 for a new car. Rather than illustrating a trend in nonsensical budgeting, these figures may be showing us a more fundamental shift in the economy:  a growing divide between the haves and the have-nots.

The confounding data come from Commerce Department numbers showing modest (0.6%) growth last month unless auto sales are included. With autos, September’s retail sales growth was the fastest in seven months.

 

US Retail Sales (Excluding Motor Vehicle and Part Dealers)  Chart

US Retail Sales (Excluding Motor Vehicle and Part Dealers) Chart by YCharts

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Profiting from the Collapse of Europe's Lehman

October 17th, 2011
in contributors

Money Morning Article of the Week

by Keith Fitz-Gerald Chief Investment Strategist, Money Morning

Back in July, I warned you that Europe probably had its own Lehman Bros. - an unstable financial institution on the brink of a collapse.

At the time, I didn't know exactly which institutions were most at risk.

Now I have a pretty good idea and want to share that with you.

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