"The worst rout in the history of commodities may be ending, signaling a replay of the 2006 tumble that preceded a doubling of prices in the next 17 months." — Madelene Pearson, Bloomberg News
Blogger’s note: Depending on which camp you belong to, the recent dip in prices either means the commodities supercycle [...]
Tags: bernanke, bhp, boom, bust, china, Commodities, dominican republic, gsci, index, India, inflation, nestle, nickel, oil, standard & poor's, supercycle, trichet, Xstrata
"With economic growth likely to slow, investors will take a greater interest in firms with clearly visible profitability, operating in strongly growing markets. Here are three examples." — Cedric de Fonclare
Blogger’s note: Each week our friends over at MoneyWeek in London ask a professional investor where he or she is [...]
Tags: Cedric de Fonclare, cyclical, economic downturn, euro, eurozone, fme, fresenius, inflation, recession, syngenta, synn, vallourec, vk
The European Central Bank (ECB) considers inflation its biggest enemy. How successfully are they fighting it? Well, with the German PPI up a whopping 9%, they seem to be doing a bang-up job!
by Nina Koeppen, Wall Street Journal
Baltimore — (TFN): German gross domestic product fell 0.5% in the second quarter from the first three months [...]
"Can the collapse in oil prices save the economy from recession? Sadly not. The rising oil price was a symptom, not a cause, of the unchecked global boom that lead us here. And the fact that it’s falling now is merely a sign that we’re already in the grip [...]
"China and India are two of the fastest-growing investable economies on the planet, and have been transformed into global leaders in both the manufacturing and service sectors. At the same time, Brazil and Russia each has become a cornucopia of commodities, and are emerging as global leaders in the white-hot global energy sector." — Martin [...]
Tags: brazil, BRIC, china, goldman sachs, gs, India, inflation, Martin Hutchinson, natural resources, oil, russia
“Missing out on gold is already costing investors a pretty penny. What’s more, most experts are forecasting gold prices to rise at least another 56% by the end of this year. So, how does one profit from gold? It’s simple.” — Mike Caggeso
Blogger’s note: Mike Caggeso of Money Morning recently compiled a valuable [...]
“I blame high oil prices on gold. Well, I’m not completely serious, but I can’t help but feel that gold isn’t holding up its end of the bargain. Investors are dumping their money into oil because nothing else is going up – including gold.” — Andrew Gordon
by Andrew Gordon
Baltimore — (TFN): I blame high oil [...]
”The move is inconsequential. The harsh realities have not changed in the slightest, and the dollar is set to continue its overall decline.” — John Browne, Euro Pacific Capital
by John Browne
Baltimore – (TFN): This week, we were treated to strong statements by both Treasury Secretary Henry Paulson and [...]
“What is the point of owning a lump of metal that doesn’t pay a dividend, isn’t edible and actually costs you money to keep safe? To understand why gold is the ultimate safe haven in this financial crisis, we have to get to the root of our current problem. [...]
“Most investors think of the international markets only as another place to seek out stocks. But overseas financial markets are a great option for income investing, as well. And here’s why.” — Martin Hutchinson
Blogger’s note: The U.S. markets are detrimental to your portfolio’s health, and that situation isn’t going to change [...]
“Fears that the two U.S. mortgage giants, Fannie Mae and Freddie Mac, were on the verge of collapse has seen commentators shrieking about the end of capitalism as we know it. And perhaps they weren’t far wrong.” — David Stevenson
by David Stevenson
Baltimore – (TFN): If you had to come up [...]
“Inflation is accelerating in the BRIC economies and central banks are responding with tighter monetary policy. While higher interest rates may be the standard remedy to combat inflation, tight money policies usually wind up dealing a death-blow to stock market investors.” — Mike Burnick
by Mike Burnick
Baltimore – (TFN): Don’t look [...]
As global “Caravan Capitalism” seeks out the countries offering the lowest production cost, multinational companies are leaving China for Vietnam. Click here to view..
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“The minimum wage in Zimbabwe last month was Z$3.9 billion, and the average workers monthly salary was a magnificent Z$15 billion. Unfortunately for the worker and his family, his whole monthly Z$15 billion dollar paycheck wasn’t quite enough to buy a bar of soap.” — John Pugsley
by John Pugsley, The Sovereign [...]
“In announcing ‘no change’ in rates yesterday, the Fed pretends that its policy is perfectly calibrated to deal with the current economy. In reality however, the Fed is pinned down by a cross fire of inflation and recession.” — John Browne
by John Browne
Baltimore – (TFN): Cheerleaders will face [...]
Tags: china, dow, europe, Fed, federal reserve, house prices, India, inflation, saudi arabia, stock markets, us
“Soaring inflation means the credibility of the legal tender in your wallet is being called into question. In other words, does your dollar really have any value?” — Jack Crooks
by Jack Crooks
Baltimore – (TFN): All over the world, everyone from market analysts to your average grocery shopper has been buzzing about inflation lately. [...]
“Whether the rest of the country likes it or not, both Wall Street and Washington place enormous confidence in the predictive powers of the Federal Reserve Bank of New York’s Empire State Manufacturing Survey.” — Adam Lass
by Adam Lass
Baltimore — (TFN): As goes New York, so goes the nation.
That motto may seem like typical NYC [...]
“I’ve paid into the social security monstrosity since 1963… Anyone want to give odds as to whether I’ll ever see some Social Security funds returned?” — Russell McDougal
by Russell McDougal, Investor’s Daily Edge
Baltimore – (TFN): Most likely your property values are falling. If your income is rising, it [...]
“Al-Naimi has pumped hope back into the system after last week’s inflation terror hit the markets. Oil prices closed at $134.39 on the New York Merchantile Exchange.” — Stephanie Grimmett
by Stephanie Grimmett
Baltimore – (TFN): Well, at least oil prices are sensitive in both directions. Saudi Arabian oil minister Ali al-Naimi called for a conference [...]
“The vague hope that the financial fallout was over has seen stock markets around the world rally somewhat since their low points earlier this year. But news at the end of last week knocked them for six.” — John Stepek
by John Stepek
Baltimore – (TFN): The markets have [...]