If you want to do well in today’s market, ignore this rally. Pay all your attention instead to the only class of companies you need to know about. I call these companies the “best of breed.” They’re probably the least-talked about companies in the market. Many investors are missing the boat. And that’s a shame.
Like bank stocks one year ago, REITs look cheap on paper…but very expensive on pavement. Out in the real world of plummeting demand for commercial space and constricting access to credit, commercial real estate is facing a very tough time. And that means the seemingly inexpensive shares of many REITs are not cheap at all.
“Just how can the Fed credibly promise to be irresponsible…?” Here’s a thought—that tiny handful of investors and analysts warning how Fed policy risks hyper-inflation are in fact doing the central bank’s work.
The Fed pulled out its “nuclear” option last week when it announced coming purchases of $300 billion in long term Treasuries (and other similar extravaganzas). This is an act of total desperation.
In a speech before the London School of Economics a week ago, U.S. Federal Reserve Chairman Ben S. Bernanke offered a perverse economic theory in his quest to gather support for never-ending Wall Street bailouts.
It’s Monday morning. The world economy is calling in sick. A Bloomberg report confirms last week’s news: the US economy lost more jobs last year than at any time since the end of WWII.. The jobless rate is now at a 16-year high.
The government is spending like crazy. And the Fed is cranking up the printing presses to keep the money flowing. As the greenback crumbles and inflation returns, Louis Basenese says interest rates will have to rise again. He says the best way for an investor to profit from this trend is to short US Treasury bonds, which are in an unsustainable bubble of their own.
The global credit bubble imploded in 2008. And now we are seeing extraordinary efforts to re-inflate it. But Byron King says we can’t go back to the old system now. Investors today need to protect their wealth with gold and cash. But long-term investors should base their strategy on the future scarcity of energy and mineral resources.
This is no ordinary downturn. After the biggest credit bubble in history, we face a correction on an unimaginable scale. Make no mistake about it: This is a credit-cycle bust that the government cannot stop. The losses are already catastrophic. And the massive unwinding is nowhere near finished yet…
One of the follies of the Bush administration was the notion that the class of money-shufflers who got us into the credit crunch could somehow be trusted to get us out of it. Which is what makes the Obama administration such a breath of fresh — oh, wait, never mind.