Justice Litle is Editorial Director for Taipan Publishing Group. He is also a regular contributor to Taipan Daily, a free investing and trading e-letter, and Editor of Taipan's Safe Haven Investor and newly introduced research advisory service, Macro Trader.
America may be banged up, but Europe is teetering on the edge of flat-out fiscal disaster… which helps explain the bizarre action in gold and the dollar as of late.
America is in a real pickle these days – but just how did we get here? Jim Amrhein reminds us, in signature pull-no-punches style, that the man who just left the White House had an eight-year hand in this mess…
The gold-to-oil ratio is at ten-year highs – a single ounce of gold can now purchase 22+ barrels of WTIC crude. But what does it mean?
The much-vaunted stimulus bill has turned out to be a nauseating, pork-laden mess. Score one for the cynics as President Obama’s credibility takes a hard and early hit.
As you read this, huge supertankers filled with oil are moored off the coast of Scotland and the Gulf of Mexico. The question is why… and what it could mean for oil-related profit opportunities in 2009. I came across a great line in Barron’s the other day. You know all about bull markets and bear markets… what we have now is a “Jim Morrison market.”
Hope and expectation is high as Obama becomes president. But Justice Litle says saving the US dollar is one miracle he cannot perform. America has spent and borrowed itself into a hole that it cannot get out of. And that’s why the writing is on the wall for dollar hegemony.
The news for US retailers is grim to say the least. But Justice Litle says investors can still make profits by shorting the most vulnerable firms in the industry. He picks three retail stocks that look overvalued in today’s climate.
The money-printing hand writing is on the wall, says Justice Litle. A severe inflation threat is on the horizon. But the bond market is still pricing in a bout of deflation. And that makes Treasury Inflation Protected Securities (TIPS) an amazing deal right now.
Economic turmoil and geo-political turmoil go hand in hand, says Justice Litle. That’s why the threat of war is rising in many parts of the world. And that’s why defense stocks could be in for a good year. Justice says AeroVironment (NASDAQ:AVAV) – which develops hi-tech military equipment – should be on investor’s radar screen right now.