It seemed as though everyone with functioning financial sensibilities was aware of and understood the many factors driving up gold. Everyone, that is, except America’s top financial expert: Bernanke Puzzled by Gold Rally Federal Reserve Chairman Ben Bernanke says he’s a bit puzzled by surging gold prices. The 30% rally from a year ago, on [...]
Economic anxiety is taking a toll on risky assets so far in August… Source
Now that almost every Wall Street economist is looking for the arrival of a Great Deflation, we think investors should begin looking the other way. Keep an eye out for inflation, we say. You will recall that during the bottom of the previous bear-market, most of the pundits were shunning ‘risky assets’ (stocks and commodities) [...]
June was another rough month for risky assets, although the losses were considerably deeper with U.S. stocks from a dollar-based return perspective… Source
We’ve seen an almost complete reversal of market momentum, with the ‘deflation trade’ of late 2008 once again growing popular: Thing is, moves to the downside often unfold five or 10 times faster than rallies – a sign that there’s little desire to buy into weakness. The decline in risky assets has been violent. Treasury [...]
Monetary incentives were dramatically altered with the founding of the Fed in 1913. This new regime ushered in a primary tendency for inflation that is not very detectible on a year-to-year basis, but has been extraordinarily high as its effects compound over time. The compounded annual average growth rate of consumer prices has been just [...]
Equities and other risky assets will likely sell-off hard fairly soon… Source
Many investors are blissfully unaware of the fact that many muni funds use leverage to pay high distributions. This added layer of risk makes these funds subject to the same liquidity concerns that plague other risky assets — and as such, many muni bond funds act similarly to stocks. Original Source
January was a rough month for risky assets. For the first time since the financial crisis raged in late-2008, the red ink that spilled… Source
Major indices managed to end the session in positive territory as energy related stocks helped to offset the weak outlook from retail giants. Stocks opened lower but managed to end the session marginally higher. As the interest rates are at historical low, cheap money is been put into risky assets, driving up the prices of [...]
