Saturday, January 15, 2011

David Einhorn On Charlie Rose

The great hedge fund manager, who has returned over 22% per year over the past decade, sits down with Charlie Rose to discuss the financial markets.

Friday, January 14, 2011

Retail Sales Strong

Retail sales came in this morning up .6% month over month for the important Christmas month of December.

God bless the 30 percent of home owners who are not paying their mortgages, living housing free, and decided to spend that money on a new iPad this Christmas.

If the banks ever decided to foreclose on some of the current shadown inventory instead of holding it off the market, and Americans once again had a "cost of living" on their expense column, we might see a different monthly number for retail sales.

We also may see a different number for the median price of a single family home.  In the meantime just enjoy the high stock prices, high home prices, and the new American miracle economy.

Thursday, January 13, 2011

US Mint Sales

The US Mint reported their January sales numbers and they have come in both unprecendented and incredible.

They have sold 3,407,000 ounces of silver in the first 12 days of the month, a number which surpasses total monthly sales for 9 months in 2010. (A record breaking year)

At this pace the January number is going to finish with earth shattering results, and the Mint may have to close the door on sales before we reach February.

When the paper silver market re-aligns with what is taking place in the physical market (the paper market realizes there is not physical demand to back the paper promises) you can expect fireworks in the precious metals market.

10 Years From Today?

Wednesday, January 12, 2011

Nigel Farage On RT News

Nigel Farage, a British politician who is the leader of the UK Independence Party, spoke with RT news this week on the state of European sovereign debt.

But let's not forget that the United States is in far worse shape than the Eurozone as seen in the graph below.  The Eurozone is composed of some strong countries and other weak ones.  The US is just one large insolvent mass, and when the bond vigilante's finish tearing through Europe's weak pieces, they will set their sights directly on the US government debt.

China Real Estate Bubble

One of the biggest concerns for the market entering the new year is China's real estate bubble and when it will burst.

Many top hedge fund names such as Jim Chanos are openly shorting businesses related to Chinese real estate, and others like Hugh Hendry are buying credit insurance in Japanese companies that export goods to China for real estate production.

As China continues to tighten monetary policy and raise interest rates to dampen inflation, it could provide the nudge needed to topple real estate prices across the board.  This would have a major impact on business around the world, and would likely bring a correction to the entire commodities market.

Bloomberg today ran a segment on one of China's ghost malls:

Tuesday, January 11, 2011

Robin Griffiths CNBC

Robin Griffiths, who has 44 years of experience as an investment strategist, spent some time discussing the markets this week with CNBC.

He describes the dollar in a "massively powerful downtrend," and says, "not owning gold is a form of insanity."

For additional interviews with Robin Griffiths on King World News click here.