- A Historic Rally in Gold Stocks – and Most Investors Missed It
Buy Low, Sell High?
It is an old truism and everybody has surely heard it more than once. If you want to make money in the stock market, you're supposed to buy low and sell high. Simple, right?
Successful stock market investing in two simple steps
Photo via slideshare.net
As Bill Bonner once related, this is how a stock market advisor in Germany explained the process to him:
Thirty years ago, at an investment conference, there was a scalawag analyst...
- Gold and Negative Interest Rates
The Inflation Illusion
We hear more and more talk about the possibility of imposing negative interest rates in the US. In a recent article former Fed chairman Ben Bernanke asks what tools the Fed has left to support the economy and inter alia discusses the use of negative rates.
We first have to define what we mean by negative interest rates. For nominal rates it’s simple. When the interest rate charged goes negative we have negative nominal rates. To get the real rate of...
- Why is the Stock Market so Strong?
Dismal Earnings, Extreme Valuations
The current earnings season hasn't been very good so far. Companies continue to “beat expectations” of course, but this is just a silly game. The stock market's valuation is already between the highest and third highest in history depending on how it is measured.
Photo credit: Kjetil Ree
Corporate earnings are clearly weakening, and yet, the market keeps climbing. The rally is a bit of a “all of worry” type of...
- Cultural Marxism and the Birth of Modern Thought-Crime
What the Establishment Wants, the Establishment Gets
If a person has no philosophical thoughts, certain questions will never cross his mind. As a young man, there were many issues and ideas that never concerned me as they do today. There is one question, however, which has intrigued me for the longest time, and it still fascinates me as intensely as it did back then: Does spirit precede matter or is it the other way around?
In other words, does human consciousness create what we...
- Why All Central Planning Is Doomed to Fail
[ed. note: this article was originally published on March 5 2013 – Bill Bonner was on his way to his ranch in Argentina, so here is a classic from the archives]
We’re still thinking about how so many smart people came to believe things that aren’t true. Krugman, Stiglitz, Friedman, Summers, Bernanke, Yellen – all seem to have a simpleton’s view of how the world works.
A bunch of famous people with a simpleton view of how the...
- Gold Stampede
The mass impulse of a cattle stampede can be triggered by something as innocuous as a blowing tumbleweed. A sudden startle, or a perceived threat, is all it takes to it set off. Once the herd collectively begins charging in one direction it will eliminate everything in its path.
Better get out of the way... stampeding bisons
Photo credit: Surface Niusance
The only chance a rancher has is to fire off a pistol with the hope that the shot...
- Russian Aggression Unmasked (Sort Of)
Provocative Fighter Jocks
Back in 2014, a Russian jet made headlines when it passed several times close to the USS Donald Cook in the Black Sea. As CBS reported at the time:
“A Pentagon spokesperson told CBS Radio that a Russian SU-24 fighter jet made several low altitude, close passes in the vicinity of the USS Donald Cook in international waters of the western Black Sea on April 12. While the jet did not overfly the deck, Col. Steve Warren called the action "provocative and...
- US Economy – Ongoing Distortions
Business under Pressure
A recent post by Mish points to the fact that many of the business-related data that have been released in recent months continue to point to growing weakness in many parts of the business sector. We show a few charts illustrating the situation below:
A long term chart of total business sales. The recent decline seems congruent with a recession, but many other indicators are not yet confirming a recession - click to enlarge.
- Getting it Wrong on Silver
Erroneous Analysis of Precious Metals Fundamentals
We came across an article at Bloomberg today, talking about silver supply troubles. We get it. The price of silver has rallied quite a lot, so the press needs to cover the story. They need to explain why. Must be a shortage developing, right?
At first, we thought to just put out a short Soggy Dollars post highlighting the error.
Then we thought we would go deeper. Here’s a graph showing the price action in silver since the...
- Political Pundits, or Getting Paid for Wishful Thinking
Bill Kristol - the Gartman of Politics?
It has become a popular sport at Zerohedge to make fun of financial pundits who appear regularly on TV and tend to be consistently wrong with their market calls. While this Schadenfreude type reportage may strike some as a bit dubious, it should be noted that it is quite harmless compared to continually leading people astray with dodgy advice.
To answer the question posed in the picture with the benefit of hindsight: not really.... (look...
- 100 Years of Mismanagement
Lost From the Get-Go
There must be some dark corner of Hell warming up for modern, mainstream economists. They helped bring on the worst bubble ever… with their theories of efficient markets and modern portfolio management. They failed to see it for what it was. Then, when trouble came, they made it worse. But instead of atoning in a dank cell, these same economists strut onto the stage to congratulate themselves.
The scalawag himself. Keynes provided governments with the...
- Double Whammy Economics
What’s up with U.S. consumers? They seem to have come to their senses at the worst possible time. They can no longer be counted on to push economic growth up and to the right. Specifically, they’re not spending money on stuff.
A little public service on etymology: “Double whammy” was reportedly first used in a 1941 Oakland Tribune article related to boxing. It means a devastating blow, setback or catastrophe. In today's economy, it often...