Archive - 2009 - Blog entry

Here are some arguments why one should think twice before jumping in bed with gold bugs, or at least remain sober while determining gold’s weight in the portfolio .

A big monthly deficit for the Trust Fund. This was supposed to be a 2037 problem. Not any longer.

Debt is like herpes: ignore it long enough and it just disappears on its own.

The market's upward momentum this year has hordes of investors still looking for opportunities with good entry points. With crude prices hovering around the $70/bbl range, even with reduced demand, oilfield services remains one of the more promising sectors still with room to grow.

But even when employment eventually picks up, it will be the most meager recovery ever and the pick-up in activity will likely be in sectors like education, health care, infrastructure and alternative energy.

The thinking of the so-called gold bug often takes on a variation of this form: While in the bunker (or any other variance of the “world-falling-apart” scenario), you cannot pay for food with paper money or a stock or bond certificate.

Project Mayhem reviews the most important financial and geopolitical news of the past week and takes a look at the week ahead.

There is little follow through on either side of the equity markets. Outsize bets in either direction are not warranted.

This is the first in a series of what some may consider as “gold bashing” articles. I am not short gold in any shape or form. I am simply presenting the other side of the argument in response to what I deem to be dishonest, gold-pimping commercials that we are subjected to all day long on TV. I may be wrong, but I am honest.

In the opinion of many, the growing severity of recent financial, economic and military crises suggests that this ability has been greatly reduced and that U.S. hegemony is now coming to an end. The highly publicized nature of these imperial misgivings makes this latest version of the nexus seem persuasive.

We have two choices for what to do with our savings: 1) we can “park it” in existing assets (stocks, bonds, mattresses), or 2) we can invest it in new capital formation. What makes us choose one over the other?

A doubling of the pension rate is terrible news? I got a better idea, why don't we also cap public sector pensions in North America? Any politician courageous enough to propose this idea here? Of course, that means a cut in their own gold plated pensions.

Presently many otherwise intelligent and capable individuals in America do not seem to understand the origins of the financial crisis -- and the multiple aspects (or shall we say 'tentacles'?) of its origination.

A analysis of busted Ginnie Mae MBS. This comes from a Wall Streeter who prefers to remain Anon. Scary stuff.

Financial stocks had a huge run up from their bottom. Many have doubled and tripled, but are they still cheap?