I have argued elsewhere that the risks of being out of the stock market may exceed the risks of being in it, even though a major drop may occur. This article will explore that position. Why You Should Be Concerned? Stock market investors should be wary, very wary. These times look and feel much like 1999 or 2007. The long-term [...]
markets
Look Out For Falling Stocks
Markets make no sense. They literally have lost touch with reality. Divergences between fundamentals, confidence and the valuation of markets are large. These divergences cannot last for long. A convergence will occur. The question is how this convergence occurs and how quickly? My opinion is that there will be little improvement in confidence and fundamentals. If true, then that means that [...]
Freedom and Economic Performance
The rise and fall of countries has everything to do with the industriousness of its people. Wealth is created only by the productive sector, not by government. Governments grow large and powerful only by exploiting the wealth creation of the productive sector. Large and powerful governments are generally signs of wealthy nations. They are also signs of wealthy nations who [...]
QE3 May Be A Surprise
A reasonable synopsis of the ethics and morality of Washington, DC was provided in an article from Before Its News: “Maybe in times past [Washington 'elites' cared], when the power structure was a bit more reserved and less blatant about their corruption and manipulations,” Krieger continued. “They don’t hide that stuff anymore. The “elites” in America today are simply gangsters. [...]
Gold And The Dow Went Separate Ways Today
Today is an interesting day in the stock market. As I write, the Dow is off about 100 points. That is not new, at least for the last couple of weeks. What is new is the move in precious metals — up strongly! GLD is up $3.30, SLV and CEF are both up over 3%. For most of the last [...]
A “Special Election” Is Coming — Brace Yourself
The US economic problems are real and large, but not unsolvable. A reasonably bright economist, unencumbered by politics, could design a solution rather easily. Pain would be involved, but the option for a solution without pain expired years ago. Any solution must involve pain, including the present strategy of pretend and extend. Addressing the problem forcefully now will result in [...]
Private vs. Public Schools in Poor Countries
I am guilty of claiming that markets provide better products for less cost than government. If so, there is an argument for privatizing everything, or at least most things. Here is an example that will not be appreciated by teachers’ unions and big government proponents. The work and findings are remarkable, although should not truly surprise anyone that understands the [...]
Begin A Library
For those interested in learning more about Austrian Economics, look at Mises.org. Arguably it is the best site to learn about free markets and liberty and the advantages that accrue therefrom. There are thousands of articles and books on-line and downloadable. For scholars and laymen it represents an incredible resource. An example of a recent offering of readings is shown here. All [...]
Biderman on Markets
Charles Biderman cannot believe the absurdities he encountered on his recent trip to New York. Can someone tell me why anyone would be long these markets, other than the hope that incumbents will be able to manipulate them up in advance of the election? I don’t think there is much upside even under that scenario. There are limits to what [...]
The Fed Is Pimping For Incumbents
The Fed’s Review Of The Banking System The banking system got high marks from the Federal Reserve on the recent stress tests. Markets responded in Pavlovian fashion. So, what else is new? A better question is why the favorable Fed report was considered a surprise? Matters are bad in the financial system, but they are unable to say so without [...]
Stock Market No Place For Pros
There is, or should be, a great deal of unease with regard to our non-recovery. The average investor has had a nice recovery in the stock market, but the sophisticated investors recognize that recent results are likely much ado about nothing. As the Wall Street Journal reported in an article entitled You Hear That? It’s Quiet…Too Quiet: For many, this year’s [...]
Russell on Markets
The sage Richard Russell said recently (my emboldening): As the world deleveraging process continues, commodity prices turn soft. Deleveraging means that people will be tightening their belts and using less of everything. However, I don’t get the feeling that Americans believe that hard or harder times lie ahead. All one has to do is survey the car-filled freeways or check [...]