The price of gold has had a solid triple since about 2001, when an ounce would set you back a mere $300 or so. (Remember that? Oh, the good old days!) For the past year or so, however, gold has been stuck, trading in the $900-980 range. It goes up a bit, down a bit.
Since the Obama administration took office in January, we’ve seen hundreds of billions pumped into the economy and the U.S. budget deficit now forecast to top the one trillion-dollar mark in the coming years. Many believe it’s only a matter of time before we also see much higher inflation – perhaps even hyper-inflation.
States on the brink… hard numbers on another crisis yet to come… Chris Mayer on a recent energy crossroads, centuries in the making… The end of an impressive streak… popular commodity rises for 54 days in a row… Commodities and stocks sell off… Rob Parenteau on what’s gotten into Mr. Market… Plus, Dan Amoss on the credit crisis: Can the free market be blamed?
I suggest you only purchase companies that have a history of consistently raising their dividends. These companies will survive and thrive no matter what happens in the economy.
Hugo Salinas Price, at plata.com, really had me going when he wrote, “Several years ago – I don’t remember the date – I read an interesting comment”…
I thought I was still asleep and merely dreaming when I opened up Barron’s and saw that the earnings of the S&P 500 dropped to $28.75, which is down from last week’s $45.95, which is down from last year’s $78.80.
As the worst financial crisis since the Great Depression continues to worsen, decades of deregulation and the growing independence at the state level are being reversed as a deteriorating national economy forces the federal government to increasingly take on responsibilities that no other institution has the power or resources to handle.
A boom is coming, says Ted Peroulakis. Unfortunately, it’s a boom in inflation. It looks increasingly like the Fed will have to print its way out of this economic crisis. And the huge national debt burden will need to be inflated away. Ted says investors can protect themselves against this trend by holding the ultimate currency: gold.
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.
The battle between inflation and deflation is the most important thing for investors to watch right now, says Adam Lass. Fears of falling prices are rife in Washington today. But the inflation cycle will come around again soon, especially with all the new money being pumped into the economy by the Fed. Adam says that’s why investors should buy the PowerShares DB US Dollar Index Bearish ETF (NYSE:UDN).