All Posts Tagged With: "bear market"

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When People Fear Inflation or a Falling Dollar They Find Refuge in Gold

Gold is also a target of greedy speculators sometimes, even when the going is good. According to a study done by the World Gold Council, you never know what gold will do.

October 5th, 2009 | | 1 comment | Continued
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Most People Think a Rising Housing Market Makes Them Richer

House prices seem to be stabilizing. In some areas, they are going up. Of course, in some places you can get a house at half the price it sold for two years ago. That lures buyers back into the market.

October 1st, 2009 | | 11 comments | Continued
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Should You Buy Gold Now?

The Trade of the Decade is still buy gold/sell stocks. And the decade isn’t over. If you have US stocks, this is a good time to sell. The Dow went up 63 points yesterday – a weak bounce after several days of losses.

September 7th, 2009 | | 0 comments | Continued
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Bear Markets Do Not End With Stocks Still Trading at Nearly 20 Times Earnings

What’s more, stock market trends tend to follow long cycles. The last bear market bottom was in ’82. It came after 14 years of disillusionment and disappointment. By the time stocks were ready to go up investors were sick of hearing about them.

September 4th, 2009 | | 2 comments | Continued
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China, the Miracle Economy

There are some other ways of keeping score that tend to tilt the game in China’s favor – at least, on paper. When you add up all the scores – it shows China a big winner. But by the end of the day, it isn’t at all clear that China’s economy is growing at such a breakneck speed.

August 13th, 2009 | | 5 comments | Continued
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Investors in China Have Learned Nothing From the Crash of ’07-’08

With no barriers to entry, profit margins are always squeezed by competition. And growth is limited too – other builders are always starting up. If the investor paid 40 times earnings, he can only get 2.5% on his money…

July 31st, 2009 | | 0 comments | Continued
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Japan: A Morality Tale of Banks and Government Refusing to Deal With Debt?

This may puzzle some people. Wasn’t the Japanese economy roaring into a bubble in the late 1980s? Indeed it was – driven in part by the 300 basis point decline in interest rates that resulted from the soaring yen.

May 27th, 2009 | | 0 comments | Continued
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Debt Built Up to Levels Even Obama Says Are “Unsustainable”

And then, all that debt that they built up over the last quarter century is a problem. It has to be paid down to the point where it isn’t a problem. And that means the obvious thing – people have to cut back on their spending.

May 20th, 2009 | | 0 comments | Continued
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USA Follows the Same Downward Slide As GM

The experts say the company is going broke. “Chapter 11 looms,” says a Bloomberg report. Investors sold the stock down to $1.15 – a price GM hasn’t seen in more than 70 years. At that price you can buy the whole company for $700 million.

May 14th, 2009 | | 0 comments | Continued
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The Very Large Bubble of Government Debt

All those bubbles are popping. You do not wipe out twenty five years of credit and leverage excess in a mere eighteen months. We are barely halfway through the liquidation/loss realisation phase. The essential question is which assets are going to perform the best as governments inflate and create a new bubble in government debt?

May 12th, 2009 | | 4 comments | Continued
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When Gold Ruled the Earth, Part II

“It took three generations,” wrote a professional metals consultant in Feb. 2009, “but we now seem to have reached the point in the world’s history where, for the first time, gold is valued only for jewelry use and speculation.

April 27th, 2009 | | 0 comments | Continued
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Deception of the Bull and the Bear Markets

Which makes us think that the rally is probably NOT over. It’s too soon to hammer the bulls. Not enough of them yet. This market should rise more…in order to draw in more suckers.

April 9th, 2009 | | 0 comments | Continued
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Jim Cramer Says The Depression is Over

But as far as we can tell, the rally is still underway. The G20 meeting is widely seen as a triumph. The money is flowing. People think we’ve seen the bottom.

April 8th, 2009 | | 3 comments | Continued
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Every Bear Market Has a Surprise

“The primary trend is down,” says he. In the end, he continues, no matter what Obama and Bernanke do, the primary trend will have its way. The bear market will continue until it “has fully expressed itself.”

April 7th, 2009 | | 6 comments | Continued
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A Period of Positive Collapse

The commentators have it all wrong. Look on the bright side. The world economy is not in a period of negative growth. It’s in a period of positive collapse! That’s why the Great Depression was so great, after all. What’s positive about this depression is that it is clearing away a generation’s worth of mistakes, misallocations of resources and misplaced confidence.

March 10th, 2009 | | 0 comments | Continued
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