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When there is a correlation, it does not matter if this causes that or that causes this if there is a third variable explaining both. The fed is the third variable. Central planners use any correlation caused by them to explain why they are needed. First they create a mess, then they make people...

The fed is just a market mirror at best. The market is a problem solving machine for the economy. Prices moves to where prices needs to go in order to fix future imbalances. I think an equity boom is needed, falling oil prices makes this possible and even likely. Many needs to be screwed to fix...

After Universal health care the debate will change, obviously it’s unfair that those living healthy have to pay for those living unhealthy. Big government fans will start to talk about taxing everything that is not healthy smoke, alcohol, sugar the list can be made endless. Once the government...

GOLD is a scam?? I agree but add GOD, LOVE and GOVERNMENT to the list of legal scams. This post is totally inappropriate and should not have been read. The poster should not have posted this but for some reason the poster does not listen to reason..

I’m not a gold bug…. But….. How much money is invested in the gold market compared to the aggregate invested in the stock market, the bond market and in real estate? Try to imagine how much money that potentially could chase gold if bonds and stocks sell off as boomers retire and the fed...

The way I see it, given a somewhat responsible fed, stagflation can only be caused by a supply shock. Lack of energy, labor or capital. The baby boomers still have some years left to work and save, so I can only see deflation pressure the next years, but what happens after 2013? The fed can...

They are helping each other, Bernacke talks strong economy and inflation to justify tight monetary policy. Greenspan talks recession to increase risk premiums, they both want the same thing to reduce leverage in the system.

This is interesting if PE rises to 28 with continued earning growth the effect can be very significant. Can it happen with or without rate cuts? I’ve been bullish equities quite some time but now I’m starting to doubt. Gold, oil and bonds rising in lockstep, kind of worrisome. Just excess...

Many Norwegians prefer to put their money in the bank, very risk averse. Often inflation and taxes eats up more than the nominal interest rate. Heey I enjoy reading your perspective, u do get something right I need to travel more :)

I’m laughing each time I look at IYR. I thought Reits where overbought back in march last year, now I can only laugh.

Where do I start? I do watch state television, and yes some of the programs are decent and entertaining, but what bugs me is that I am forced to pay for a channel I have not asked for. Give me a choice. It’s really just a tax hurting poor more than rich. Like most I also pay 50$ a month to get...

Okey I’m from Norway, let me give u some highlights from the Social democratic heaven Norway. Consumption tax 25% Income tax 7.8-47.8% Capital gain tax 28% Wealth tax: 1.5% of wealth. And then there is all these indirect taxes and excise duties. The list is very long...

Reits? Who needs yield?

And what about demand for energy and commodities. It will go down as the boomers retire? Certainly gold may rise because of inflation fear caused by wage inflation. But in general the stock market is a better place to be? Luckily corporate balance sheets are healthy, but they will probably...

This is true, but if u want to go ur own way. Start a business or just trade for a living u realize that it takes longer to acquire the necessary capital when u are paying the government 70% of ur income.

Its supply and demand? What will happen when the baby boomers retire? Higher wages and declining asset prices? Isn’t this the inverted 1969-1982? Wealth is now transferred from workers to capital owners, back then it was opposite. In the not so distant future it will be opposite once again.

Lower volatility is ok if commissions are lower. More trading competition reduces volatility and spreads. Lower volatility and spreads attracts investors. More investors push up PE. Higher PE more volatility. It’s a positive spiral.

Scientists and priests are equally stupid. They can only see 50% of reality. About global warming.. Speed it up faster and faster, these winters are too damn cold.

Exactly and freedom attracts money. Only bad policy can kill USA.

And there is no real right in Europe.. Division of labor? Thank god theres one democracy that is still right.