A summary of the most popular posts for March, 2011
The economic recovery is a weak, jobless recovery that masks the true amount of joblessness. This could lead to a double dip recession, making stocks crash and bonds go up in value.
An interesting article in FT today about copper buying in China mentioned that the spread between 3 month versus 15 copper futures dropped from a 3.5% premium to almost zero which implies plenty of supply. The article quoted a metals analyst that the risk to prices was “firmly to the downside”.
People ask about QE2 investment advice; what are investments for surviving the devaluing of the dollar, and how does that affect today’s bond market?
Two great articles printed in WSJ today: Home Prices Continue Descent by TESS STYNES and KATHLEEN MADIGAN. They quoted David Blitzer, chairman of S
Investors seek to know about imperfect markets in real estate and how the housing crash affects CPI. Some people wonder if they should buy junk bonds. They also ask, will the dollar be devalued?
The Economist magazine on March 24 had an article titled and subtitled “America’s property market On a losing streak The effects of America’s worst property crash go very wide”
In today’s news there are a lot of articles that support my bearish views. For example: An article in today’s WSJ Real Time Economics Blog “Housing Becoming Policymakers’ White Whale” by Kathleen Madigan is full of quotes that support my opinions and yet shock me even though I’m a housing bear. For example: “Those (home) sales are at their lowest since records began in 1963 — despite the fact that the U.S. population is 122 million residents larger than 48 years ago. …the sector remains an intractable foe for policymakers. The gap between supply and demand means prices have started to fall again…but housing wealth is still half of what it was in 2005. The lack of demand suggests
Investors have enquired about devalued dollar investments, investments for a dollar collapse, and have asked “will inflation cause a crash?” The standard answer that most advisors offer is that to protect from a possible collapse of the U.S. dollar one should invest in gold, silver, precious metals, oil, energy stocks, stocks of companies that save on the cost of fuel such as railroads, etc.
Gary Shilling was interviewed today on Yahoo Finance made some important points that coincide with what I have been saying for a long time.