Rethinking the China Bubble

“It’s the only place we could take a company in a developed industry and double our business each year for five years. Where else can you start out with $5 million in sales and be making $35 million in practically no time?”

That’s what one of the world’s leading Chinese financiers told me over dinner last night.

It has caused me to rethink the growing bubble in Chinese markets. And that we may have thought a bit too much, looking too closely at key economic fundamentals like electricity consumption and age demographics in the past.

As we’ve professed throughout this rally at…

Gold Outlook: Explosion in the Price of Gold Imminent

Six months ago, at the Prosperity Dispatch, we had the opportunity to sit down with John Embry, the chief investment strategist at Sprott Asset Management. He is one of the world’s leading gold experts.

That was March though and not too many investors were interested in buying anything. But Embry said to look past the short-term and focus on the big picture.

At the time, Embry predicted:

I think the major development is going to be ongoing issues of currency debasement. The value of paper money against real tangible assets is going to fall considerably. Right now, we are going through this deflationary scare.…

Is Now the Time to Buy Gold?

Just a few months ago the race was on for gold. In March, gold blew past $1,000 an ounce. Commentators were jumping over each other to make a more attention-getting prediction than anyone else.

$1,500 an ounce…$2,000…$3,000 – they would say.

The gold bulls were getting very aggressive. Some even started adding a time element to their predictions (i.e. “gold will hit $1,500 an ounce within a year” – that really only happens when bullishness is at an extreme high). I even saw a few – back of the envelope – calculations to justify $10,000 an ounce gold…or higher!

At the time, inflation…

Good News for Some Long-Term Potash Investors

By Andrew Mickey, Q1 Publishing

It’s been a wild year for fertilizer stocks. Many investors who have been loading up on agriculture stocks right along with the hedge and mutual funds have taken some big lumps over the past couple of months, but it looks like the panic selling period is behind us.
When overleveraged traders and hedge funds are forced to sell anything and everything, we’re all forced to relearn that fundamentals mean next to nothing in a bear market. But that could be slowly starting to change right now. And if it does, the long-term outlook for fertilizer and potash…

What to do During a Market “Adjustment”

“I know Americans are concerned about the adjustments that are taking place in our financial markets.” – President Bush

Adjustment!?!

What on earth is a financial market “adjustment?”

Despite the sugar-coating, President Bush did get one thing right, Americans are concerned. More like afraid. Fear has taken over the markets. And I’ve got to tell you, I’m loving every second of it…and you should be too.

The U.S. economy has plunged into recession. Unemployment has surged more than 50% in the past two years. Multi-billion dollar investment banks like Bear Stearns, Lehman Brothers, and Merrill Lynch that leveraged themselves against the housing market…