Monday There is a complete disconnect between the economy (business), and stock markets. It is a worldwide phenomenon. The world economy was dealt a death blow by the closing down of businesses, supposedly because of a virus. In truth, the economy was already on its last legs – over-regulated to the point of grinding to a halt. The stock market is … [Read more...]
The Big R
Saturday The history of economics and war tells us that the world is in a bad place. Empires are in collision. It is 1914 – with nukes. The West’s softest and silliest ever generation, is about to get a real life lesson in Reality – the Big R. It will be an unrecognisable concept to most. Despite the giddy euphoria of the stock market, we have … [Read more...]
What’s Happening to the Price of Gold?
Thursday With the US$ (and other currencies) gaining in strength in the last 36hrs, I’ve been busy answering my phone and emails. “What’s happening to the ‘price of Gold’?” I’ve almost given up trying to explain that Gold is a store of stable value and that it is the currencies that are going up and down as measured by Gold. It is because they cannot grasp that … [Read more...]
Shorting the Market
Sunday Stocks exist in Australia that allow one to short the market – i.e. bet that the market is going to go down. I own some – BBOZ. Please do not take what follows as any sort of investment advice. I have a record as a stock tipper almost as bad as that of my picking winners of the Melbourne Cup. I have no idea from whence BBOZ’s income is derived, nor do I really … [Read more...]
Stock Markets – A Time for Prudence
Thursday It is easy to call a top too early and look a damn fool. Nevertheless, stock markets are wildly overvalued by any measure and it is time to take advantage of the prices. The economies of the world are precariously poised. The central bankers who brought about this situation are now trying to put off the inevitable results of their actions. To this point, in … [Read more...]