Programs to Control the Uncontrollable

Posted on July 5, 2013 by MN Gordon

Things are melting up – and melting down – the world over.  What’s more, summer’s only just begun.  While Americans were dreaming of block parties and beach bashes as they punched out for the Independence Day holiday Wednesday afternoon, Cairo was under military coup.

Tanks and troops took to the streets.  Soon after, as the sun set on the Egyptian capital, the sun also set on Mohamed Morsi’s presidency.  After that fireworks filled the sky.

What does it mean…exactly, who knows?  One headline says the turmoil in Egypt is what pushed oil above $102.  Sounds like as good a reason as any.

Markets were closed in the United States yesterday.  So we looked further east for dots to connect.  In Japan, we noticed stocks are melting up again.  After crashing 20 percent from mid-May to mid-June, the Nikkei 225 has run back up 12 percent.  What to make of it?

Was the selloff overblown?  Will the new run-up last? Continue reading →

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Howl at the Moon

Posted on July 2, 2013 by MN Gordon

“Fate is nothing but the deeds committed in a prior state of existence.” – Ralph Waldo Emerson

Safety and Care

Uncompromising independence, rugged individualism, and limitless personal freedom were once essential to the American character.  According to popular American folklore, they still are.  We have some reservations.

Somehow, for the greater good of us all, Washington has become a sort of money sucking vortex over the last 100 years.  At the Capitol Building sits a cadre of legislatures and an army of staffers operating with a devout singleness of purpose…to work up new laws to take your money and steal your freedom.  This, of course, is all for your safety and care.

New rules, proposed rules, and notices are published daily in the Federal Register.  A quick read of the daily publication will enlighten and alarm you to the vast array of agencies, departments, and commissions and their vast array of daily drivel.

Yet it’s not just the federal government you must contend with.  Some state and local governments are even worse. Continue reading →

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Where the Big Lessons will be Learned

Posted on June 28, 2013 by MN Gordon

Reading the headlines of this week’s data reports tells the story of a strong, robust economy.  According to the Commerce Department announcement on Tuesday, single-family home “sales increased 2.1 percent to a seasonally adjusted annual rate of 476,000 units – the highest level since July 2008.”

But that’s not all.  We also got word on Tuesday that U.S. consumer confidence is also at a five year high.  AP reports…

“The Conference Board, a New York-based private research group, said Tuesday that its consumer confidence index jumped to 81.4 in June.  That’s the best reading since January 2008.  And it is up from May’s reading of 74.3, which was revised slightly downward from 76.2.”

Yesterday the Commerce Department confirmed that people are earning more money.  On top of that, they’re using their increased proceeds to buy more stuff… Continue reading →

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What Are Reasonable Gold Market Expectations?

Posted on June 25, 2013 by MN Gordon

What Are Reasonable Gold Market Expectations?
By Jeff Clark, Senior Precious Metals Analyst, Casey Research

The historical record shows that those who get washed out during big corrections miss the greatest buying opportunities of a bull market.

With that as context, what can we expect from gold moving forward?  Let’s start with the short term…

Full market capitulation is underway.  Headlines about gold are almost universally negative today, and all about selling.  This feeds on itself, and the process may not be over.  In this kind of environment, prices will overshoot to the downside.  In other words, the bottom may not be in.

What if we get more short-term pain? Continue reading →

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