Gold is undergoing a short-term correction, which is natural during a bull market. The correction could take gold to as low as $1400. This would represent an excellent buying opportunity for investors. To counter the anti-gold crowd, Faber emphatically states that gold has not reached a major top and is likely to trend higher later this year. - in iStock
If you look at the Dow Jones in gold terms it peaked out in 1999, and is not down 84% in gold terms.
In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore.
So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and eh stock market in gold terms.
In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore.
So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and eh stock market in gold terms.
A rising yuan has actually done little to force of the price of China’s exports. Data collected by the U.S. Bureau of Labor Statistics show the price of U.S. imports from China in May up just 2.8% year on year. That is higher than in past years, but it still means only a fraction of the yuan’s gains are so far being passed through into higher prices.
In May, all-cash purchases made up 30 percent of sales of existing U.S. homes, the bulk of which were acquired by investors. That was double the rate of October 2008
housing data firm RealtyTrac in 2006,
specially, core inflation is something I keep a close eye on, because that's going to tell me, regardless of the rate of unemployment" what the outlook for inflation is, Kocherlakota said. "We are seeing some upward pressure on that, in core inflation," he said
Time is running out ahead of the August 2 deadline, when the U.S. Treasury says it will run out of money to pay the country's bills
n my view, the only event that could really have negative consequences for the stock market would be a default by the US Treasury. The most important thing is that the president wants to appear to be making an effort to lower oil prices to support economic growth and reduce unemployment. The desire to be proactive is undoubtedly a factor in the shift in the administration's treatment of deepwater drilling in the Gulf of Mexico. President Obama also wants to be seen as helping Americans at the pump ahead of summer driving season. Never forget that 2012 is an election year in the US. Even if the SPR release provides only a temporary respite for consumers, this move may allow the Obama administration to take some credit for the recent drop in retail gasoline prices in the US.
In short, the decision to release 60 million barrels of oil from global SPRs partly a political move designed to bring down oil prices ahead of the summer driving season. That may work over the next few weeks. But the more important point is that it reflects how tight the global oil market has become and that meeting global oil demand growth will require an unacceptable decline in global spare capacity.
In short, the decision to release 60 million barrels of oil from global SPRs partly a political move designed to bring down oil prices ahead of the summer driving season. That may work over the next few weeks. But the more important point is that it reflects how tight the global oil market has become and that meeting global oil demand growth will require an unacceptable decline in global spare capacity.
Rounding out the bottom five of the index, following Greece, are Portugal, Venezuela, Egypt and Italy. Sweden, Switzerland, Finland, and Australia are among the top five for your money. But the highest score, by far, is the debt of Norway.
IPO
He projects the Standard & Poor's 500 to end the year at 1400 to 1450; at what exact point depends on how good are second-quarter company earnings.
"If those look strong again I think 1450 is definitely within reach
European price-to-book values are as low as they’ve been since 2000 and dividend yields in Europe are higher than any other market….So it all looks fantastic for European equitie
I think we can rally to around 1,330 on the S&P now, but not make a new high above the 1,370 highs, which we saw in May. And then, in my view, we would be going down to maybe 1,150 on the S&P.
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