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).
Ed Bugos examines the outlook for gold in the short and long term. The government’s spending binge is fundamentally bullish for gold via its impact on inflation and the US dollar. However, it could take time for these negative effects to emerge. And that means another short-term correction in gold remains possible.
Since gold has fallen so far, so quickly, for so little reason, the future for gold looks increasingly good, too, as the future of the dollar and the economy looks increasingly bad, and asset-type things (like houses and stocks) falling in value certainly looks deflationary, like the $30 trillion that has been lost in the world’s stock markets in the last year, which may have been what prompted Howard Ruff of the The Ruff Times newsletter to say, “It is axiomatic that deflation is the spawning ground for inflation, as the government doesn’t know how to fix deflation, depression or recession other than to throw money at it. The creation of all the money floating through the economy will eventually…
President-elect Barack Obama has promised the biggest infrastructure upgrade America has seen since the 1950s. This is great news for those in the nuts-and-bolts business of construction and repairs. Chris Mayer says Astec Industries (NASDAQ:ASTE) and Northwest Pipe (NASDAQ:NWPX) are two strong companies set to benefit from an Obama stimulus.
US Government spending is at record highs, fueled in part by the costs of President Bush’s so-called economic ’stimulus’ package.
Reuters reports that US Treasury spending and revenue reached fresh highs in April.
US government posted a $US159.3 billion surplus in April, helped by the mid-month deadline for individuals meeting 2007 tax obligations, but it was down from the prior year’s surplus, the Treasury Department reported on Monday.
Amid all the gloom investors are feeling right now, South Korea has produced some sunny rays. On April 9, the Asian Tiger suggested that its economy could accelerate and that its stock market could take off.
As long as Pelosi has control of the big chair in the House, you might as well hang up your goal of becoming a rich businessman.
