201208.26
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Correction On The Horizon

I’m traveling today (and a little under the weather to boot) so this will be a fairly short update. I’ve spent the last week visiting clients and potential clients in Augusta, GA and Asheville, NC and before I get started, I’d just like to thank our representatives Larry Hogue and Bob Williams in Augusta and…

201208.26
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A Closer Look: Market Cap

The S&P 500 Cap-Weighted Index hit a new 52-week high this week before correcting back to the 20-day moving average. While it did bounce off the technical level on Friday, look for the index to test support at the 1390 level and then at the 50-day MA in anticipation for Bernanke’s Jackson Hole speech this…

201208.24
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The Next Phase For Gold

Precious metals prices are currently fixed on strikes at mines in S Africa. Potential unrest is pushing PM prices higher. In the current weakening global trade environment, is it possible that an increase in worker unrest upsets the supply of metals at exactly when banks are shifting toward gold? Major disruption to platinum is expected…

201208.20
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There Is Nothing New In the World, Even Non-existent Recoveries

Joe Calhoun passed along the passage below of what now seems both like ancient history and yet stoically relevant. From the preface to the second English edition of Emile Zola’s L’Argent (Money) published in 1894: for the rottenness of our financial world has become such a crying scandal, and the inefficiency of our company laws…

201208.19
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Is The “Bad News” Really Good?

Facebook closed the week on a new low and the press is replete with tales of IPO investors’ woes, the demoralizing effect on employees and whether CEO Zuckerberg is in over his hoodie. Slate even featured a ridiculous article by a University of Washington professor advocating the nationalization of the company because it “has become…

201208.19
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A Closer Look: Commodities

The GSCI Commodity Index ((GSG)) consists primarily of Energy (71%), but also contains Agriculture (14%), Industrial Metals (7%), Livestock (4%), and Precious Metals (4%). The Dow Jones-AIG Energy Total Return Index ((JJE)) consists of Natural Gas, Crude Oil, Heating Oil, and Unleaded Gas. The DJ-AIG Grains Total Return Index ((JJG)) consists of Corn, Wheat, and…

201208.15
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I Guess I’m A Policy Idiot Too

Mark Thoma comes unglued about Paul Ryan’s economic policy views: Romney and Ryan don’t approve of fiscal policy stimulus (unless it’s tax cuts for the wealthy), and Ryan would take away the ability of the Fed to respond to unemployment as well. Basically, they are telling us that if a recession hits and they have…