Posted Apr 16 2009, 12:20 PM by Todd Harrison Forget stocks and bonds, the real money's in guns.
The Wall Street Journal reports artillery enthusiasts are stocking up on guns and ammo, not necessarily ahead of widespread civil unrest resulting from our ongoing economic swoon, but as an investment. These trigger-happy speculators are betting President Obama will institute a ban on assault rifles, which would crimp supply and send prices, well, shooting up.
For it's part, the Obama administration says it has no plans to enact such legislation and supports the Second Amendment right to bear arms.
During the federal ban on semiautomatic weapons from 1994-2004, prices soared. Recent buying has reached almost a frenzied pitch, creating backlogs for popular models and enabling resellers to list certain guns well above suggested retail prices. AK-47s doubled in price between September 2008 and the end of last year.
Ammo, as well, has become a hot commodity. As one supplier said, "(Ammunition) beats the hell out of money markets and CDs. You can double your investment in ammunition in a year."
(more)
Friday, April 17, 2009
Platinum and palladium markets find their own stimulus
Potential launch of first U.S. ETF backed by the metals holds promise
By Myra P. Saefong, MarketWatch
Last update: 2:27 p.m. EDT April 17, 2009
TOKYO (MarketWatch) -- The platinum and palladium markets have found their own stimulus plan -- in the form of the potential launch of the first U.S. exchange-traded funds physically backed by the precious metals.
In the down economy, couples getting married may find palladium more attractive, with the cost about 70% less than that of platinum. Investors seem to be keen on the metal, too. Stacey Delo reports. (April 17)
And if the SPDR Gold Trust (GLD
SPDR Gold Trust ETF & SLV) are good examples of what ETFs can do for a specific commodities market, then the latest ones backed by platinum and palladium may be no different, analysts said.
These ETFs would be a "huge boon for retail investment into the PGMs (platinum group metals)," said Scott Wright, an analyst at financial-services company Zeal LLC.
Indeed, the timing may be just right. Prices for platinum and palladium have been climbing from lows hit late last year.
Platinum prices have gained more than 60% from their low in October of last year to trade as high as $1,247 an ounce this week on the Comex division of the New York Mercantile Exchange. Palladium's up close to 50% from its December low to a high above $242 an ounce this week.
(more)
By Myra P. Saefong, MarketWatch
Last update: 2:27 p.m. EDT April 17, 2009
TOKYO (MarketWatch) -- The platinum and palladium markets have found their own stimulus plan -- in the form of the potential launch of the first U.S. exchange-traded funds physically backed by the precious metals.
In the down economy, couples getting married may find palladium more attractive, with the cost about 70% less than that of platinum. Investors seem to be keen on the metal, too. Stacey Delo reports. (April 17)
And if the SPDR Gold Trust (GLD
SPDR Gold Trust ETF & SLV) are good examples of what ETFs can do for a specific commodities market, then the latest ones backed by platinum and palladium may be no different, analysts said.
These ETFs would be a "huge boon for retail investment into the PGMs (platinum group metals)," said Scott Wright, an analyst at financial-services company Zeal LLC.
Indeed, the timing may be just right. Prices for platinum and palladium have been climbing from lows hit late last year.
Platinum prices have gained more than 60% from their low in October of last year to trade as high as $1,247 an ounce this week on the Comex division of the New York Mercantile Exchange. Palladium's up close to 50% from its December low to a high above $242 an ounce this week.
(more)
Tuesday, April 14, 2009
Faber Says S&P 500 May Rise to 1,000 on Bank Earnings (Update3)
April 13 (Bloomberg) -- The Standard & Poor’s 500 Index may rise 17 percent to 1,000 in the next three months as government spending boosts bank profits, investor Marc Faber said.
U.S. stocks probably reached their bear market low when the S&P 500 fell to 666.79 during trading on March 6, Faber, who publishes the Gloom, Boom and Doom report, told Bloomberg Radio in an interview from Thailand.
Financial shares may increase further after the S&P 500 Banks Index jumped 25 percent on April 9, the biggest rally since at least 1989. Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. are among more than 30 S&P 500 companies scheduled to announce results this week.
“You have essentially a government that gives financials free money at the expense of the taxpayer,” Faber said. “With this free money, they may actually have decent earnings in the near future.” (more)
The IEA warns of shortages - "The next oil crisis is coming"
by Michael Kläsgen
A shortage of oil could trigger another global recession around 2013 – says the IEA. By 2010 the price will reach new highs.
The IEA in Paris is warning of a new, much more severe global economic crisis around 2013. The reason is that investments in oil from new projects are being cancelled by large oil companies. If demand starts increasing in 2010, the oil price could explode, fire up inflation and put global growth at risk.
"We are concerned, that oil companies are reducing their investment levels. When demand returns a supply shortage could appear. We are even predicting that this shortage could occur in 2013." Said Nobuo Tanaka, head of the IEA in an interview with Sueddeutsche Zeitung.
Oil reserves declining markedly (more)
Moody's Downgrades The Whole Country
Joe Weisenthal|Apr. 8, 2009, 8:33 AM
The Federal government is still AAA, but every municipal debt issuer is now suspect and shaky according to Moody's.
For the first time ever, the ratings agency placed all munis on negative outlook, a precursor to potential downgrades. Historically, the agency looked at munis individually and considered them to be too diverse to make blanket statements about.
But it seems overspending and the hollowing out of the revenue base is a nationwide phenomenon affecting cities and states everywhere.
And of course the US government is affected by those same phenomenon -- we think the government's revenue expectations remain wildly optimistic, given the slowdown and the collapsing of the income gap -- but alas the Fed still has the printing press and should be able to hold onto its AAA rating for awhile longer.
Meanwhile, New York actually managed to float a bond at a 5.55% interest rate and a 2036 maturity. Who'd have guessed?
The Federal government is still AAA, but every municipal debt issuer is now suspect and shaky according to Moody's.
For the first time ever, the ratings agency placed all munis on negative outlook, a precursor to potential downgrades. Historically, the agency looked at munis individually and considered them to be too diverse to make blanket statements about.
But it seems overspending and the hollowing out of the revenue base is a nationwide phenomenon affecting cities and states everywhere.
And of course the US government is affected by those same phenomenon -- we think the government's revenue expectations remain wildly optimistic, given the slowdown and the collapsing of the income gap -- but alas the Fed still has the printing press and should be able to hold onto its AAA rating for awhile longer.
Meanwhile, New York actually managed to float a bond at a 5.55% interest rate and a 2036 maturity. Who'd have guessed?
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