Some Highlights
Part 1:
-Lots of stocks & commodites have bottomed out
-Short term overbought
-Escalating deficits and easy money=inflation
-No deflation
-Problem is when economy recovers and inflation pressures arise, US federal reserve should increase rates forcefully
-Federal Reserve will be reluctant to do so because they hold so much bonds
-By being reluctant to do so they will below the rate of inflation, below the rate of GDP growth, that will be very inflationary
-Next 20 years US bonds will be in a bear market
-No green shoots only better bad news-government massaged figures
-Inflationary policies to support asset markets may be temporarily successful –you will get a lot of volatility
-Markets peak out on good news and they bottom out in bad news if someone doesn’t understand that he shouldn’t invest
-Lots of commodities are very attractive
-If they print money they will drive commodity prices up more than equities
Part 2:
-Corporate moves are fragmented, selective opportunities
-Deposit rate is ZERO
-The FED is encouraging speculation
-Credit cycles tend build up over a number of years
-People are beginning to recognize gold as the ultimate cash where supply can’t be increased
-I didn’t sell my physical gold because I don’t trust central banks, I want to be my own central bank, my only worry is that central bankers and governments have now proven how dishonest they are that they will take your gold away one day
-There is enough food in the world it’s the distribution problems and it's the ability to pay for food, but the tragedy is that the world has much money to build total waste of arsenal of weapons to fight and kill each other but they don’t have money to distribute the world equally.
-Lots of mining stocks still inexpensive
-Indices are more overbought and you have to be selective
-Nibble on real estate around the world
-Mr. Obama is a total disaster personally
-The US has really had real bad luck: first Bush and now Obama, normally 2 and 2 equals four, Bush and Obama equals ZERO
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