All Posts Tagged With: "Market"

Back on the 24th August I warned of an imminent sell off because the market was resting on some important technical levels. This view turned out to be wrong. The market found support at these levels and has rallied strongly since. So does that mean I have changed my view on the markets and become bullish?

Recently, the US Treasury Department released data showing an 11% decline in official Chinese holdings of US government bonds during the past year. For US dollar holders, this is a troubling trend. Not so much for those holding gold. To put it simply, the Chinese government isn’t adding to its US bond position…

What’s your take on technical analysis? The idea that prices can be forecast from charts seems counterintuitive, let alone at odds with the Daily Reckoning philosophy. Well, working alongside Murray Dawes, our trader here in St Kilda, would change your perception rather quickly.

John Williams, who keeps track of what is really going on in the economy at his “ShadowStats” outfit, says to expect hyperinflation within 6 to 9 months. Seems too early to us. But a major turn in the bond market and much higher inflation rates are coming. And you don’t want to be holding US bonds.

There are many myths about the stock market. No one is exactly sure what the stock market is or how to make money from it consistently. We all have to come to our own understanding of what it is and do the best we can from there.

Buffett, in his role as aloof spokesman for a bygone era, said, “I am a huge bull on this country…We will not have a double dip recession at all. I see our businesses coming back almost across the board.” All of that is interesting. But only some of it is relevant. Berkshire Hathaway’s shareholders would be more concerned with the actual performance of its units than how Buffett feels about America. But to the extent that Buffett himself has become a brand (cliché)…

The Fed came out with a report from its regional banks. Almost all the indicators showed a slowing economy. Not that we’re headed into a double-dip. We haven’t even gotten out of the first dip yet. Here’s Bloomberg with the news:Banks: ‘Widespread Signs of a Deceleration’ in Economy…

The next few days should be telling ones for both gold and equities. Gold has come off its new highs. But you haven’t seen a huge amount of selling either. As our friend Phil Anderson pointed out the other night, you often see two to three days of lower closes after a new high. That gives you a good time to enter into a position.But so far, September hasn’t been the historical disaster we’ve come to expect. Mind you, it’s early. Yet outside some whisperings of capital raisings by major European banks…