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Every bull market for each type of financial instrument has three phases: accumulation of an undervalued asset by so-called “smart money” that recognizes the undervaluation, growing public participation as the uptrend gains increasing attention, and inevitable speculation that leads to overvaluation of an asset and eventual resumption of a new downtrend.   Gold is nowRead more

How Much Did It Cost to Build the Titanic   I recently received a link to an article in The Vintage News with an eye-catching headline: “The replica Titanic cost $435 million & is set to launch in 2018”. I was intrigued, so I couldn’t resist reading the article. It reported that an Australian billionaire wasRead more

The US federal government’s financial accounts end each year on September 30th. Last week the Treasury Department reported the government’s financial position for the fiscal year ended 2016, and it does not look good. I will ignore for the moment the government’s negative net worth, which itself means that the federal government owes more thanRead more

The US federal government spent $369 billion in August, but only received $179 billion in revenue. The resulting $190 billion deficit was a record for any August and the third highest monthly deficit in the current fiscal year, which ends on September 30th.

February 3, 2011 – An article today in The Wall Street Journal highlights the latest rise in the price of wheat.  Blaming bad weather, it notes that the “global wheat market is caught between freezing winds and a sirocco.” The WSJ therefore warns that “investors should beware of whiplash as weather normalizes.”  Given that wheatRead more

September 20, 2010 – There is too much money being printed.  No rocket science is needed to reach that conclusion. The markets are giving us a clear message. For example, gold is trading at a record high, while silver has reached a 30-year high.  Those new high prices are happening for a reason.  The preciousRead more