Friday, February 12, 2010
That is the opinion of New Zealand market trading expert Welles Wilder, who has previously been highlighted by publications such as Forbes and Barron's for his skill in the markets, stuff.co.nz reports.
His belief was revealed by another local trader Oli Hille, who trades in New Zealand's currency markets, and is currently writing a book, which is to be titled Creating the Perfect Lifestyle. (more)
Silver remains very undervalued on a historical basis and is undervalued even against gold. While gold has begun to receive some interest from a small minority of retail investors, silver remains the preserve of relatively few contrarian investors and the media and financial press rarely, if ever, covers silver. And yet silver is quite likely in the intermediate stage of a bull market that will rival or surpass that of the 1970s.
Silver is currently worth less than $17.00 per ounce. It rose to a recent nominal high $20.88/oz in March 2008. After an 18 month period of correction and consolidation, silver looks set to challenge that high in the coming months. We continue to be bullish on gold and particularly silver and believe that silver will likely surpass its non inflation adjusted high of $48.70 per ounce and its inflation adjusted high of some $130 per ounce in the coming years. (more)
Asked on CNBC whether he would buy Greek government debt, the investment guru responded, “I’m not interested in sovereign debt, because I think all governments will eventually default, including the U.S.”
He later amended that statement, saying emerging market countries with small debt burdens and large currency reserves are exempt.
“The problem is that emerging market economies today are much sounder in terms of debt-to-GDP ratios than the developed world, including the U.S. and Western Europe,” Faber said. (more)
Lost in the flurry of headlines recently about Toyota Motor's recall over faulty gas pedals and brakes was news of a remarkable feat for an automaker these days: The Japanese company actually made a profit last quarter.
Which raises an intriguing possibility: If Toyota strings together more profitable quarters, will investors kick themselves someday for missing a chance to have bought a piece of what is still arguably a great company on the cheap?
Sean Thorpe, co-manager of foreign stock investments at Reed, Conner & Birdwell in Los Angeles, thinks so. (more)
Historian David Hackett Fisher describes this passing era as the period of Victorian Equilibrium. England’s Victorian Equilibrium, however, was built on banker’s credit, a foundation of sand; and like the story of Cinderella where the carriage turns into a pumpkin at midnight, the banker’s credit has now turned into defaulting debt and the fairy-tale world it built is collapsing.
Lies, lies and more lies
On February 5th, a Bloomberg headline reported: US Economy, Unemployment Unexpected Falls To 9.7%. Bloomberg’s headline wasattempting to convey a more positive outlook for those considering additional borrowings to help restart the banker’s stalled engine of credit and debt (their credit and your debt); but the following chart tells the real story about US unemployment, a far different version than the optimistic story being spun by Bloomberg: (more)