We are addicted to oil. We yearn and thirst for more and more resources. We pollute with impunity, without remorse, and with no understanding of any unintended consequences. There is no hope for us… …or so they say. What if we can produce oil on demand, anywhere in the world…Can’t be, no way. What if this…
I’m not sure what possessed investors to re-embrace the warmth of the bull market last week but it surely wasn’t good news on the US economy. Or good news from Japan. Or good news from the Middle East. Or good news from Europe. Or good news on the housing market. The ability to ignore the…
I’ve been warning about a rise in volatility for the last month and it arrived in spades last week. Clairvoyant? Hardly. Obviously, I had no idea an earthquake and nuclear disaster was about to strike Japan. If I had, I would have sold the tiny position in Japanese stocks our portfolios hold (less than 1%…
From Doug Terry: THE FED PUT aka the Greenspan Put aka the Bernanke Put What is it? An implicit safety net or insurance policy granted to banks by the Fed. Why do banks have this? Systemic risk, too big to fail. Why do banks want or need this? The banks have become speculative entities. Sometimes…
As I said last week, get ready for some volatility. Stocks most everywhere fell last week but it wasn’t a one way ride. Down Monday, up Tuesday, flat Wednesday, smacked around Thursday and an end of the week rally on Friday. The S&P 500 finished the week down 1.28%. Foreign markets, particularly emerging ones, were…
Guest post from Doug Terry: My wife is an avid knitter. So avid, she has her own inventory of yarn and also of wool to spin her own yarn. She mentioned yesterday that the price of wool had gone up 20%. After telling her nice job honey, she said thanks and I got to thinking about what…
Got whiplash yet? If not, stand by because volatility is rising and seems likely to get worse in the months ahead. The S&P 500 was up 0.1% last week but that masks the volatility of the week. Stocks were down 1.6% Tuesday and up 1.7% on Thursday after a good jobless claims report (see below)….
