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Worried about Future Inflation? Don’t Be. Just Prepare and Prosper
By: Lorimer Wilson
www.PreciousMetalsWarrants.com and www.InsidersInsights.com
As the table below depicts, commodity related stocks and their associated warrants are wasting little time recouping the major losses they incurred in 2008 and are already up 30% and 74%, respectively, YTD, even though they are currently suffering from the summer doldrums.
What is most impressive is that all this is being accomplished without inflation (we are presently experiencing marginal deflation), without a major increase in the price of gold (it is only up 3% YTD and down 4% over the past month) or other commodities and without a declining U.S. dollar In fact, the USD is actually up 5.3% YTD vis-à-vis the Canadian…
17Jul2009 | Lorimer Wilson | 0 comments | ContinuedThe U.S. Recession Will Be Painful, But it Could’ve Been Lots Worse
The U.S. economy is entering a recession. With each day that passes and each indicator we see, that eventuality becomes more and more clear.
Even so, we can take some real comfort in knowing that we’re likely going to avoid the “bottomless pit” of a Great Depression II. A substantial recession with accompanying inflation – roughly along the lines of the downturns of 1974 and 1980-82 – seems the most likely scenario we face.
The last two U.S. recessions – the 1990-91 downturn touched off by Saddam Hussein’s invasion of Kuwait and the subsequent recession in 2001 – were both short and…
22Oct2008 | Money Morning | Comments Off | ContinuedEuro Shows Its Real Colors
If you would have told the "economists/analysts" on CNBC or Bloomberg six months ago that the next interest rate move by the Fed would be down, you would have most likely been laughed at. You see, market capitulation in any market is often relative. For many, just when you feel comfortable with a trading range, or trend, it changes. When we slashed rates down to 2%, many individuals (even the doves), said that’s more than enough.
A couple bank failures, takeovers, bankruptcies, and bail out later and the markets were screaming for a rate cut. This time it was a…
9Oct2008 | Oxbury Research | Comments Off | ContinuedRising Tide of Level 3 Assets a “Disaster Waiting to Happenâ€
In the first quarter, Goldman Sachs Group Inc. (GS) packed another $27 billion worth of illiquid assets onto its balance sheet – a 39% increase that brought the total to $96 billion.
And Goldman wasn’t alone. Morgan Stanley (MS) reported that these hard-to-value/hard-to-sell assets soared 45%, reaching $32 billion. For Lehman Brothers Holdings Inc. (LEH), the first-quarter increase was $500 million, bringing its total to $42.5 billion.
The balance-sheet holdings in question are known as “Level 3″ assets. And with the smoke from the subprime-mortgage crisis still hanging over Wall Street like the fallout from a nuclear missile strike, some industry observers…
21Apr2008 | Money Morning | Comments Off | Continued
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