Macro trends and analysis
By Adam Hamilton
Stock bull markets don't rally higher in a nice linear fashion. Their advance is much more chaotic, flowing and ebbing. Two steps forward are inevitably followed by one step back. Today the US stock markets, despite their recent selloff in early March, still look to be in this correction mode. These ebbings present stock traders with awesome buying opportunities, the best ever seen within ongoing bulls.
[[wysiwyg_imageupload:2150:]]By Axel Merk & Kieran Osborne
We believe that continued U.S. dollar weakness may be a consequence of the diverging monetary approaches central banks are taking around the globe. While many international central banks have been on a tightening path, raising rates (i.e. central banks of: Australia, Brazil, Canada, China, India, Norway, Sweden, to name but a few), the U.S. Federal Reserve (Fed) has been conspicuous in its continued easing monetary policy stance. Indeed, while other central banks have been shrinking the size of their balance sheets, the U.S. Fed's balance sheet continues to expand on the back of ongoing quantitative easing policies.
[[wysiwyg_imageupload:2149:]]By Dock Treece
Often when the world is in turmoil, old rules and long-held 'truths" go out the window. This is precisely what we are seeing today with several established theories on investing, including the broad diversification espoused in 'modern" portfolio theory.
The theory behind diversification as been applied according to a [poor] interpretation that it allows investors to build a portfolio that they can simply leave alone for extended periods of time. In a world where many people stress over finances, this theory allowed investors to feel comfortable with the 'safety" of their assets so they could sleep at night and go about their lives.
By The Bourse Theorist
Correlations Remain Strong
Correlations between different product groups continue to be the main theme across financial markets. Be it oil, equities or bonds, over the past 3 years there has been a tendency for many asset classes to move up and down together. Today we are close to seeing all asset classes move down together. The rush to exit will bring the US Dollar back to its "king" status.
[[wysiwyg_imageupload:2142:]]By The Mogambo Guru
I watch expectantly as the national debt again nears the debt limit, and Zero Hour is just a few weeks away, a term I cleverly used to indicate that available credit will be zero. Maxed out.
I let it go at that, as I am not inebriated enough to get up on my high horse to loudly and rudely note that nobody in the corrupt government (including the Federal Reserve) apparently needs any stinking permission from anybody to do anything anymore, including any number or frauds and corruptions, to keep the government wallowing in the oceans of cash it so desperately, desperately needs to keep, you know, wallowing.
By Jordan Roy-Byrne
Over the past few weeks Gold has traded at or near record highs. It has yet to embark on a sustained breakout but that is not because Gold is a crowded trade. In recent months money has moved into equities, Oil and Silver. As a result, some hot money and speculative money has moved out of Gold, leaving the market in a healthier state.
By Doug Casey
Nothing is cheap in today's investment world. Because of the trillions of currency units that governments all over the world have created - and are continuing to create - financial assets are grossly overpriced. Stocks, bonds, property, commodities and cash are no bargains. Meanwhile, real wages are slipping rapidly among those who are working, and a large portion of the population is unemployed or underemployed.
The US should make a 'down payment' this year on tackling its budget deficit, the International Monetary Fund has warned, as it emerged that the world's biggest bond investor is shorting the country's bonds.
By Richard Mills
As a general rule, the most successful man in life is the man who has the best information
The approaching storm I wrote about in last year's article The Rising Cost of Survival has certainly struck many countries with a vengeance. I thought it would be an appropriate time to revisit.