Undercutting Canadian Tar Sands

Anyone who has any illusions about the Canadian tar sands business should take a look at the picture below. I’m not a fanatic, sandal wearing, organic bean sprout eating environmentalist, but just looking at it tells you that this is an eco-disaster of Biblical proportions. A $50 billion investment by several firms over the last […]

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The New California Gold Rush

On my way back from Lake Tahoe last weekend I saw that every bend of the American river was dotted with hopeful miners, looking to make a windfall fortune. Weekend hobbyists were there panning away from the banks, while the hardcore pros stood in hip waders balancing portable pumps on truck inner tubes, pouring sand […]

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May 3, 2012 – Quote of the Day

“Isn’t it funny when you walk into an investment firm, and you see all of the financial advisors watching CNBC? That gives me the same feeling of confidence I would have if I walked into the Mayo Clinic or Sloan Kettering and all of the doctors were watching the TV soap opera General Hospital,” said […]

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When the Demographic Headwind Becomes a Tailwind

I managed to catch up with my friend, Harry Dent, the other day, the guru on all things demographic (click here for his site at http://www.hsdent.com/ ). Regular readers of this letter are well aware of the enormous headwind impeding all assets classes caused by the retirement of 80 billion baby boomers, which started in […]

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The Hard Numbers Behind Selling in May.

If I had a nickel for every time that I heard the term “Sell in May and go away” this year, I could retire. Oops, I already am retired! In any case, I thought that I would dig out the hard numbers and see how true this old trading adage is. It turns out that […]

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June 1, 2012 – Quote of the Day

“If there is no monetary stimulus and no fiscal stimulus, obviously we are going to continue to grow slowly. We could be in secularly slow growth for decades,” said Harvard economics professor, Ken Rogoff.

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May 2, 2012 – Quote of the Day

“If you want to succeed, double your failure rate,” said Thomas Watson, the CEO who built IBM into a global force from the twenties to the fifties. He also said, “I think there is a world market for maybe five computers.”

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Enduring the Pain in Spain

There is no doubt that the crisis in Spain is getting worse, threatening to drag down the rest of Europe, and ultimately the US, with it. Over the weekend, Standard and Poor’s downgraded the debt of 11 Spanish banks, after downgrading the country’s sovereign debt weeks earlier. Further downgrades are a given so expect them […]

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The Bombshells Headed Our Way

This certainly promises to be an interesting week for the markets. On Thursday, we get the Department of Labor’s weekly jobless claims at 8:30 AM EST. If we clock a fourth consecutive week over 380,000, or go even higher, then an exact repeat for last year’s summer slowdown will be in play. So will the […]

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Only Buy Companies You Hate

Dilbert cartoonist Scott Adams argues that you should invest in companies you hate, because only the most unprincipled and rapacious firms make the greatest profits. Moral bankruptcy is a great leading indicator of success, and the best ones can get you to balance your wallet on the end of your nose and bark like a […]

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May 1, 2012 – Quote of the Day

“The investor in America sits at the bottom of the food chain,” said John C. Bogle, founder of the Vanguard Group of index funds.

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SOLD OUT! Last Chance to Sign up for the May 3, 2012 Scottsdale Strategy Luncheon

Come join me for lunch for the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Scottsdale, Arizona on Thursday, May 3, 2012. A three course lunch will be followed by a PowerPoint presentation and an extended question and answer period. I’ll be giving you my up to date view on […]

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Coffee With the Treasury Secretary

I knew that Treasury Secretary Tim Geithner was early for our meeting at the San Francisco Mark Hopkins Hotel, as the line of silver Secret Service GM Suburbans was illegally occupying some of the most prime parking places on Nob Hill. I’m glad they changed the color. I was getting tired of the perpetual black. […]

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April 30, 2012 – Quote of the Day

“At some point in 2011, knuckles are going to be turning white, and we’ll see whatever rabbits Ben Bernanke is going to have to pull out of his hat,” said David Rosenberg of Gluskin, Sheff & Associates

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No More QE3

That was the judgment of the markets in the wake of the Federal Reserve’s latest economic forecast released today for at least two minutes. The asset classes most dependent on further monetary easing, like gold (GLD), silver (SLV), the Euro (FXE), and the yen (FXY), saw dramatic, sudden selloffs, and then recovered losses almost as […]

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