Investment/Trends

Analysts: Muni-Bond Selloff Looks Like Lehman All Over Again

"It's wrong to just take to periods and look at empirical data to forecast out. You need theory to explain the moves and any similarities. The similarities come about based on Austrian Business Cycle Theory, which says a slowdown in money printing results in a shrinking in the capital structure of the economy. As a result there is upward pressure on interest rates, as those seeking funds must bid up rates to entice investors. It such a slowdown in money growth occurring? It sure is. Just like it did in 1929, 1987 and 2008." Continue reading →

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New crowdfunding site JumpStart Fund hopes to launch new startups

"The new platform called JumpStart Fund, marrying crowd-sourcing with crowdfunding, comes from the California-based online community called Jumpstarter, which has been involved in matching investors with technology opportunities. JumpStart Fund was designed to be an online community where people can share ideas and build businesses based on patented technology, with individuals getting stakes in startups based on what they bring to the mix. JumpStart is working with federal research labs holding thousands of patents deemed public property because they were paid for with tax dollars and is reaching out to US universities and private facilities." Continue reading →

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The European Economy You Must Own

"The catalyst that will emerge is Poland’s inclusion in the euro zone in the next few years. When that happens, every institutional investor in the world with a euro focus will flood into Polish stocks. At this moment, many look at Poland and say it’s too early to invest there. That’s the wrong mentality. Polish companies are strong. The Polish economy is strong. Stocks are cheap. It’s not like you’re trying to catch a falling knife. In this case, the knife has already landed in the block of wood, and it stopped vibrating long ago. Today, you can just walk up and grab it by the handle without fear." Continue reading →

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The Forgotten Country Where Profits Beckon

"In my travels through Eastern and Southeastern Europe over the last couple of years, I’ve heard time and again about the Germans. They’re everywhere. In Hungary. In Turkey. In Slovakia. In Romania. They’re all over Poland. And like Genghis Khan, they’re invading Kazakhstan in search of oil and gas and other natural resources the Germans need to power the great German manufacturing machine. Honestly, you could do a lot worse as an investor than following Germany around the world. Unlike the U.S., the Germans are flooding into some of the fastest-growth markets in the world – Mongolia, Eastern Europe and Kazakhstan." Continue reading →

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Debt Excess and the Liquidation Process in a Historical Context

"We find it constructive to divide debt into three categories based on the criteria of capital consumption. We'll start with liabilities taken on with the intent of making a subsequent sale at a profit: in other words, debt that increases the capital base, such as business loans. We call this 'good' debt. In the second category, we have mortgages, financial sector loans and foreign debt, all of which are classified as 'bad' debt. In the third and last category, we have debt that allows pure capital consumption, such as consumer credit and government debt. It should be obvious that consumptive debt cannot exceed productive debt for an indefinite period of time." Continue reading →

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“The Biggest Growth Opportunity in the History of Capitalism”

"While America’s middle class is disappearing, there’s a whole new middle class rising around the globe. Over the past two decades, urbanization and market-oriented economic policies have powered the growth of this new consumer class. This new middle class is demanding access to clean water, clothing, TVs, health care, housing, food … you name it. McKinsey Global Institute calls the rise of this new middle class 'the biggest growth opportunity in the history of capitalism … an economic force that’s over 1,000 times as big as the Industrial Revolution.'" Continue reading →

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Dubai’s gold trade waits on India windfall

"UAE’s gold and jewellery trade aims to be a direct beneficiary as India imposes further controls on domestic consumption of the metal in all its forms. But the spin-off for local jewellers will not be confined to tapping demand from Indian shoppers who want to make use of the growing price differential. 'We have heard reports about new controls on gold purchases in Pakistan and higher taxes elsewhere in south-east Asia, all of which significantly raises the attractiveness of buying jewellery here and then taking it back to their home countries,' said Shamlal Ahmad, director of international operations at Malabar Gold and Diamonds." Continue reading →

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India mulls leasing of IMF-bought gold

"The Indian government is deliberating whether or not to lease the 200 tonnes of gold it bought from the International Monetary Fund in the international market to earn dollars. The Reserve Bank of India (RBI) purchased the gold from the IMF for an estimated price of around $6.70 billion in 2009, and under the IMF’s limited gold sales programme. 'The deal was misinterpreted by many at that time, that it could further inflate the gold price. [..] India’s purchase of gold was a reserve management strategy,'' a banking official told Mineweb. He added that globally, central banks were showing an increased interest in diversifying their holdings, to protect against a slumping dollar." Continue reading →

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China Gold-Mine Deals at Record After Price Plunge

"Acquisitions by China’s gold mining companies reached a record this year as the metal’s steepest quarterly drop in more than nine decades slashes mine values and sidelines Western competitors laden with debt. Takeovers and asset purchases by producers based in China and Hong Kong rose to a record $2.24 billion this year, beating last year’s record $1.96 billion, according to data compiled by Bloomberg. China’s government has urged national gold producers to boost development of overseas resources in neighboring countries and in Africa and Latin America, according to its 12th Five-Year Plan which ends in 2015." Continue reading →

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Bill Bonner: US Market Crash Alert!

"Investors trust the Federal Reserve to protect their money...just as the Fed makes their investments less trustworthy! Because the more influence the Fed exerts over prices, the farther they move away from where they ought to be. Ah yes, dear reader, that is one of the curious, always-fascinating feedback loops that keeps life on planet Earth ‘normal’. Whenever things get too weird, something intervenes to make them less weird. And one of those things is a certain Mr. Market. It’s all very well for investors to believe the Fed won’t allow them to lose money. That’s what makes it possible for non-delusional investors to make a lot of money." Continue reading →

Continue ReadingBill Bonner: US Market Crash Alert!