Tag Archives: US$


Looming Defaults and the Effect on Currencies, US$ vs Euro

The race to the bottom is on! The only question remaining: Who will blink first? I am referring to the race to default.  As you will see when reading the stories below, the USA and the EU have major cracks in the foundation.  Should Greece and/or Portugal default on debt the Euro would suffer accordingly. However, if and when California […]

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, […]

December Strength of the US$: Bull or Byproduct

A confluence of dubious “positive” economic numbers, supplied by the U.S. government, has given rise to the US$ bull during the month of December.  If we are to believe the financial media, the debate is over: the US$ reigns supreme again. Almost every day over the last few weeks another commentator, analyst or self-styled market guru jumps on the US$ […]

Happy Holidays, Existing Home Sales, Revised GDP

Welcome to the ‘happy holidays’ edition of the RCM blog. I thought we should begin with a little year end wisdom: “Life isn’t about waiting for the storms to pass. It’s about learning to dance in the rain.” – Vivian Green Managing capital during the last two years required the ownership of solid wading boots and a strong hurricane slicker. […]

The Fed Meeting Fallout, US$ Strength / Smaller than Expected Debt Limit Increase, Shadow Home Inventory on the Rise, State Budget Problems

The Fed chose not to change rates or comments during the Wednesday meeting. While we anticipated this outcome in our Monday post, the market reaction has been anything but expected. In months past the type of Fed commentary exhibited this week led to a lower US$ and inverse strength in commodity and equity markets. This week the results have been […]

Precious Metals: A Minuscule Market, BLS Jobs Report Worthless, Obama Continues to Increase Spending, U.S. Treasury Zero-Rate Auction

The volatility of precious metals prices will continue to astound. For those requiring a courage boost, I offer the following information as succor… The Precious Metals market is minuscule – Matterhorn Asset Management The graph below shows how small the gold and silver industries and markets are in relation to major US corporations and to total world financial assets. The […]

Stock Market Investing: The Dubai Implications, Investment Strategy: Generational Move Unfolding For Gold and Silver Prices

NEW YORK (CNNMoney.com) — The news that the sovereign wealth fund of Dubai requested a postponement of billions of dollars of debt this week could pose a big problem for U.S. banks… …Bove said the underlying problem is that there is a lot of uncertainty floating around. For example, there’s little information available about counterparty derivatives, guarantees that transfer default […]

Housing Starts Crater, Economy Woes Tie Fed Hands, GLD Warnings, Paulson & Touradji Make Bold Gold Statements

Mid-week and the economic numbers continue to disappoint. However, equity investors should take heart and view the chart above. This is a monthly chart illustrating the direction of the US$ and the inverse relationship with the S&P500. The chart dates back to 2000, but you can see the correlation has become more intense in the last 12 months. So, as […]

Stock Market Investing: Stay the Course & Ride the Wave, GDP not 3.5%?, Economic Numbers Troublesome, Hyperinflation Rapidly Approaching

Stock Market Investing: No change from last week. The technicals didn’t get much better but an overwhelming tsunami of weak economic data helped to drive the US$ lower and drove both hard asset prices and equity prices higher.Read More… …Meanwhile, even as Brazil implements policy changes to stop its currency from appreciating, the Real advances adding credence to the Economist […]