Archive for April, 2011

Silver has entered a third growth phase, with the price increasing at about a 2,000% annual rate. Clearly, those gains are unsustainable. The question is, at what point will the trend reverse? This article is posted on SeekingAlpha.com. »

The Fed issues its statement on Wednesday (April 27). What will be the outcome? More importantly, how should we invest as a result? This article is posted on SeekingAlpha.com. »

With all the talk about the Fed’s easy money actions, there remains one subject that is largely ignored: Who’s paying for the Fed’s largess? With low interest rates, lots of money and good intentions (increase employment and bolster the economy), the Fed’s easy money policy seems like a win-win situation. The only “cost” appears... »

During the Fed’s easy money policy, official money supply growth looks moderate. Therefore, there seems to be little indication of high inflation risk. However, the easy money policy has caused money supply dislocations. When adjusted for these, money supply growth increases appreciably, thereby raising inflation concerns. Here’s the situation… This article is posted on... »

In “Easy Money (1): Fed Touts Flawed/Risky Rationale,” we discussed the Federal Reserve Open Market Committee’s (FOMC’s) weak rationale for easy money. Today, we’ll cover how the FOMC dismisses clear signs of 4% inflation. This article is posted on SeekingAlpha.com. »

Federal Reserve Vice Chairwoman Janet Yellen, attempting to explain the wisdom of the Fed’s easy money policy, instead exposed its weak reasoning. To understand what is going on, we need to come at it from three points of view: Easy Money (1) – Fed Touts Flawed/Risky Rationale Easy Money (2) – Fed Dismisses Inflation’s... »

A key indicator is flashing a warning for the Federal Reserve Open Market Committee (FOMC) to back off its easy money policy. But the signal goes unheeded. How important is the indicator? Very. Here’s the situation… This article is on SeekingAlpha.com »

The year 2011 is a new environment for stock investors. Recession and recovery are diminishing factors for many companies’ earnings. The good news is that we can look forward to more reliable growth estimates and, therefore, more confident use of valuation measures. The bad news is that we are losing the rebound growth boost... »

One of the most troubling questions to non-owners of gold is what gold’s value should be. They have watched the price climb in puzzlement. It just traded at $1,460. Last year at this time it was $1,140. In 2009, it was $880. Investors hear that gold is an inflation hedge. But that 65% increase... »

In “Screening for Technology Stocks: 30 Finds to Consider,” we were left with a list of 30 possible “new” technology stocks. Now we need to decide which are worth further analysis and consideration. When studying any high growth companies (including technology), starting with their stock price graphs is worthwhile. Here’s why and how …... »

Nasdaq committed an error and now has to pay the price. The penalty? Having to publicly announce a dramatic “rebalancing” of its noteworthy Nasdaq-100 (QQQ) stock index. No, there is no admission of guilt. In fact, after the rebalancing, the same flaws will still be in place. Ironically, all this is taking place in... »

In January I wrote, “Be Contrarian; Believe a ‘Real’ Bull Market Is Starting.” It looks like it’s begun. There are still reports using “but” to offset good news, and The Economist is still happily pointing out where the rain is falling or could fall. However, the continuing economic and financial improvements are forcing a... »