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Marc Faber believes bonds are currently a bad investment. “I disagree with the bond bulls that are basing their case on a deflationary environment. In such an outcome tax revenues would collapse and stocks would fall heavily.” Should stocks fall the Fed would initiate more quantitative easing. Faber says people shouldn’t be buying bonds with yields trading Continue reading Dollar will Drop so Don’t Invest in Dollar Assets – Marc Faber Andy Tobias, author of “The Only Investment Guide You’ll Ever Need”, believes that after a certain point, it doesn’t help to know more about investing. Andy Tobias: If you’re using more complex strategies, that implies active trading. Transactions have costs. There are brokerage commissions. You have the spread. And then you have taxes if the trade’s not Continue reading At Some Point It Doesn’t Pay to Learn More About Investing: Andy Tobias Quantitative easing in the form of QEII has very likely lowered long-term interest rates, at least somewhat, promoting some investment and economic growth. But absent further fiscal stimulus, it’s unlikely to be a cure-all for a slow growing economy with anemic demand. And it is possible, though unlikely, that the Fed could find itself in Continue reading Quantitative Easing – Interest, Inflation Rate Tradeoff What if lack of debt and property ownership information caused the financial crisis? It isn’t enough to have property rights – you need information to accompany those rights. Economist Hernando de Soto believes that the financial crisis wasn’t just about finance—it was about a destruction of knowledge of property ownership. Hernando de Soto: During the second Continue reading Debt and Property Ownership – Destruction of Information Caused Crisis “Investors are diversifying out of U.S. Treasuries and going into global markets,” according to Templeton Asset Management’s Mark Mobius. “That’s been a big change, which has been beneficial for emerging markets generally.” Global markets are gradually adjusting to the day when the dollar will not be the main currency, Mobius said. ”The global equities bull market will Continue reading Emerging Markets Continue to Grow – Mark Mobius You may think emerging markets are no longer cheap. Even so, there are good reasons to consider emerging markets for a portion of your investments. One reason to invest in emerging markets is to gain exposure to currencies that have a good chance of rising. It’s important to have emerging-market currency exposure, especially because the Continue reading Emerging Markets Still a Compelling Investment Bill Gross runs Pacific Investment Management Company (PIMCO), a company synonymous with bond investments, especially U.S. Treasuries. Earlier this year PIMCO announced that their flagship fund, Total Return Fund, is no longer invested in U.S. Treasuries. Bill Gross is worried that, unless entitlements are substantially reformed, the U.S. will likely default on its debt; not in conventional Continue reading Follow the Money – Dump Treasury Bonds and Invest in Emerging Markets In one scene in the 1975 movie “Rollerball”, Mr. Bartholomew (John Houseman), Executive Director of the Energy Corporation, explains to Jonathan E (James Caan) that all of the governments are broke. Only corporations have money…and power. The day after Standard and Poor’s threatens to downgrade U.S. sovereign debt worldwide stock markets go up, underscoring the disconnect between Continue reading ‘Rollerball’ Explains the Disconnect Between Government Debt and Soaring Stock Markets Companies that are in the emerging markets, or U.S. domestic companies that export to emerging markets, are doing well, since emerging economies are doing well. But for companies whose primary customer is the U.S. consumer, business is slow. James Trebilcock, chief marketing officer for Dr. Pepper Snapple Group, says “cash at home is tight, and people are Continue reading Emerging Markets vs. Domestic Companies: At Home Cash is Tight, Being Used to Pay Down Debt, Not Spending |
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