Tag Archives: China

Understanding Recent Equity Market Mayhem: A Tidal Wave of Liquidity Creation Meets a Cavernous Trench of Debt

Over the last couple of weeks we have witnessed a series of conflicting reports from all over the media complex as to why equity markets are under pressure. Predictably, as soon as the markets recover a bit these same pundits come up with all sorts of reasons to cheer.  Needless to say these hysterical reports, bullish or bearish, are entirely […]

Healthcare Vote Drives the Equity Markets Higher?! U.S. – China Trade War Brewing

The equity markets move higher responding to the results of the healthcare vote Sunday? If you can’t see through that illogical logic then no amount of reading this blog will help you. Please stop reading this post, don’t pass go and choose a card from the community chest as that seems to be the order of the day. For the […]

Credit Markets Warning Signal, Foreign Demand for US Treasury Falls

The following story represents perhaps the largest obstacle facing equity market integrity today.  The previous statement is not hyperbole. The collapse of equity prices in 2008 was presaged by a python-like constriction of credit. If the private sector cannot access credit then business grinds to a halt and as we saw in 2008 economic cataclysm ensues…  Credit markets flash hottest […]

FED Will Not Reduce Liquidity, Stock Market Investing, China Theme Continued

That’s it! I’ve had it! Enough! Let’s dispense with the absurd, ludicrous, vacuous debate about “imminent” Fed tightening.  The financial airwaves and print are full of this idiotic expectation that the Fed will reduce liquidity soon.  Allow me to be clear: THE FED WILL NOT REDUCE LIQUIDITY AT THIS TIME. The Fed cannot reduce liquidity because the economic environment is […]

Investment Strategy 2010, Welcome to Our Research Room, US$ vs.Yuan

Investment strategy: Many factors will affect our investment strategy in 2010 not the least of which will be the continued development of the Chinese dragon. The transformation of China into an economic powerhouse will lead to many dynamic investment opportunities for those who can separate the proverbial wheat from the shaft. I can think of no better international combine driver than our own research guru, […]

Giddy-up! Buffett, Berkshire Hathaway Climb Aboard Coal Bandwagon

Berkshire Hathaway’s recent acquisition of rail operator Burlington Northern Santa Fe Corp has generated a tremendous amount of dialogue within the investment community.  For one, the deal involves Warren Buffet, Berkshire’s iconic CEO and legendary value investor.  The 79 year-old sage, whose succession plan remains one of the most tightly bound secrets in the industry, invited the rail operator to […]

Chris Nelder. logi Energy-China: The Vampire Squid of Commodities. Part Two

Well, I have explained it: America has no energy plan, and we won’t have one until we give up our fantasies about energy independence or drilling our way out, admit that oil is peaking, and get serious about planning accordingly. Continue reading

Stock Market Investing, Investment Strategy, Precious Metals Thesis, IMF Sells Gold to India, Conversation with Gary Rosenthal

Stock Market Investing: The equity averages continue to languish, however, as anticipated, the relative strength of precious metals investments soars. The Dow, S&P500 and the NASD all sit at or near their respective lows of the last two weeks while Gold hits a new high for the year at $1,085.65 and Silver crosses $17. Investment Strategy: We have used the […]

Sept. Housing Data, PPI, Russia and China Talk of Replacing the US$ on energy Trade, UK Real Estate Heats Up

More economic numbers out this morning that suggest a continuation of the status quo. The Fed can point to the PPI numbers and pretend there is no inflation… September Core PPI Y/Y +1.8% vs +2.0% consensus, prior +2.3% September PPI Y/Y -4.8% vs -4.3% consensus …So rates can remain low to help the listless housing market… September Housing Starts 590K […]

Hawkish Fed Comments From Warsh, Bullard, Plosser Why? Terrible Economic Numbers, Chicago PMI, MBA Mortgage Applications

U.S.$ weakness of late has spurred a cacophony of comments around the world for a new reserve currency. Now the Fed is attempting to fight back. Over the last few days a number of Fed governors have made hawkish statements to bolster the U.S.$ (the fact that these comments were offered before, during and after the G20 summit is not […]