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Why fixed income investing is on life support

Alex — Wed, 30 Nov 2011 20:05:58 +0000

The current financial paradigm is crumbling beneath us. This is not a temporary disruption, it is a meltdown. All of the mechanisms that drive paper markets are being eroded, and more and more market participants are being, quite literally, robbed …

Silver’s scary sell-off

Alex — Sun, 25 Sep 2011 21:21:05 +0000

Silver and silver-related assets were smashed across the board on Friday as the World Bank and IMF met in Washington, DC to discuss the worsening global crisis. Other commodities saw sharp declines as well. More silver was traded that day …

Twist, but don’t shout

Alex — Wed, 21 Sep 2011 18:30:19 +0000

(Updated at 4:25 p.m.) The Federal Reserve announced that it will begin selling shorter term US Treasury securities and use the funds raised to buy in to the 6 to 30 year space. They also indicated more easing in the …

Cautiously waiting for the Fed

Alex — Tue, 20 Sep 2011 18:00:13 +0000

The Fed’s two day meeting wraps up tomorrow and markets are eagerly awaiting the release of any policy changes or revisions in the economic outlook from the central bank. Many pundits expect a variation of the 1960s “Operation Twist” where …

The coming global debt-driven depression

Alex — Fri, 09 Sep 2011 18:31:17 +0000

Reality begins to set in, which inspires panic. Frantic selling across various speculative assets brings prices drastically lower. Retirements and pensions wiped out. Paper investments made effectively worthless. Sound like a repeat of 2008-2009? The American Nightmare This horrifying scenario …

An exercise in reckless monetary policy

Alex — Wed, 07 Sep 2011 03:05:02 +0000

The Swiss National Bank intervened in the foreign exchange markets today, effectively devaluing the Franc by over 8% in a single day. Through a combination of an aggressive monetary policy statement and direct foreign exchange purchases of other currencies (namely …

The great rotation from gold to silver

Alex — Mon, 22 Aug 2011 18:10:42 +0000

With gold pushing all time highs on a near daily basis, far exceeding its inflation adjusted highs from prior decades and pushing through several technical overbought indicators, many are concerned a correction is looming from this recent parabolic move, where …

Risk off trade resumes after bounce

Alex — Thu, 18 Aug 2011 21:29:55 +0000

High frequency traders, institutions and retail investors pushed markets lower today, and in recent days, after a brief reprieve from the selling abated in to a liquidation frenzy. Gold made new record highs, silver stayed strong as the commodity complex …

Risk off panic selling, Euro collapse and more

Alex — Thu, 04 Aug 2011 19:46:16 +0000

The world markets were roiled today by panic selling. The sell off was catalyzed by negative news on Italy’s solvency, accelerated further by margin calls on major institutions, forcing a major deleveraging across the board. Many are fearing a reemergence …

Precious metals outlook and thoughts

Alex — Thu, 09 Jun 2011 07:51:27 +0000

After the violent price swings we’ve seen in silver and the correction in gold, I remain cautiously optimistic that the precious metals sector is now in a bottoming phase and that the nominal paper values disconnect between physical values indicates …