Commodities Bubble or A Wall of Worry?

John Authers of the Financial Times penned a decent article over the weekend on the possible explanations for the commodities “bubble.” It’s worth popping over there and reading the whole thing but he sums up his three explanations of the commodities run-up as follows:
If the “consumer demand” explanation is right, then you should not [...]

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Interesting article on the US$ reserve status

Nice little UBS research note published on Barron’s website discussing the dollar’s resemblance to the sliding sterling in the early 20th century.
I have to agree with this article for the most part. I haven’t discussed this aspect much lately but despite my bearishness regarding the US dollar, I do not expect the armageddon type [...]


Investment Returns and the Theory of Relativity

What were your returns last year? Well, the answer is, it’s all relative. Many of the mis-categorized perma-bears (Peter Schiff, Jim Rogers, etc.) have repeatedly asserted that diversifying away from the US dollar is essential and that any nominal gains are illusory. Not surprisingly, the mainstream pundits have a very difficult time [...]

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Helicopter Ben’s Big Day of Fun

Obviously, the Fed will cut today. Whether it be 25 or 50 bp, I’m leaning toward the latter but really, I’m not that vested in today’s decision.
I’m positioned to benefit in the intermediate-term from the Fed’s obvious easing cycle. Whether that happens today or over the course of the next year isn’t important [...]

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Blinders on Wall Street

Some of the “experts” on Wall Street remind me of another useless species, jazz critics. Some of these unproductive types spill much ink debating about whether this sounds like jazz or that doesn’t sound like jazz — it’s hard to find a more idiotic discussion. To paraphrase Miles Davis, once you can [...]

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US Dollar Index Falls Through 75

Take a day off and come back to record low US dollar levels. The USD index sits at 74.6 as I type this, 1.4922 against the euro and the yen at 107.88 against it.
There’s a strong correlation between a rising yen and a lower stock market, probably due to the carry trade, so odds [...]

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