Fed Says Market Rally is BS

Well, they didn’t really say that, but they could have, and perhaps should have, and the bond market wholeheartedly agrees with them. That is my takeaway from the Fed minutes released yesterday indicating that the Federal Reserve intends to extend its hyper accommodative policies for at least another 6-9 months to “late 2012.” It also […]

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Report From Beverly Hills

I am writing this letter at a table in the alcove of the Polo Lounge at the legendary Beverly Hills Hotel. They did not disappoint on the movie star front, with more than an ample supply. At the table on my right, John Hamm, who plays the predatory ad man Don Draper in AMC’s Mad […]

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January 27, 2012 – Quote of the Day

“China has been doing everything right for the last ten years. Our government is made up of ‘C’ students that were political science majors, whereas, the Chinese government is made up of PhD’s that were educated at Cambridge and Harvard,’ said one Washington observer.  

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Apple’s Next Stop: $1,000!

Newspapers, TV, radio, and the Internet all carried the same headline in San Francisco today: “Apple Now World’s Largest Company.” That was the response to the company’s Q4 earnings of $13 billion announced yesterday that drove its market capitalization skyward to $415 billion, surpassing ExxonMobile’s (XOM) once again. What is even more amazing is that […]

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Goodbye Steve Jobs, Hello Dividend?

Analysts continue to be stunned by the rate at which cash is rolling into Apple (AAPL). At current cash flows, the company’s hoard is expected to grow from $96.7 billion to $130 billion by next June, an increase of nearly $220 million a day! So far, the company has resisted every entreaty to part with […]

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January 26, 2012 – Quote of the Day

“Oh wow, Oh wow, Oh wow!” Were the last words of Apple founder, Steve Jobs.

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The Benefit of the Doubt Market

It is already January 24, and the S&P 500 has seen a grand total of two down days so far in 2012. Are we on the eve of one of the great bull markets of all time? Is it off to the races once again? I follow dozens of fundamental and trading research services and […]

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The Resurrection of Peak Oil

It has been a long wait for ‘peak oilers,’ whose passionate belief is that the world will run out of oil in coming years, sending prices through the roof. This splinter religion came into being in 1956 when M. King Hubbert produced some simple supply/demand charts showing that US reserves of Texas tea would dry […]

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January 25, 2012 – Quote of the Day

‘He who lives upon hope will die fasting,’ said Benjamin Franklin.

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Sold Out! Las Vegas January 27, 2012 Strategy Luncheon

Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Las Vegas at 12:00 noon on Friday, January 27, 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 […]

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Watch International Savings Rates for Market Cues

Often while searching for a piece of data through Google, I stumble across something else which is far more interesting. That is how I found the table below of international savings rates. Why should you care? Because countries with high savings rates tend to have strong economies and great stock markets, since there is plenty […]

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The Population Boom

In their century long coverage of exotic places, cultures, and practices, National Geographic Magazine inadvertently sheds light on broad global trends that deeply affect the rest of us. Plus, the pictures are great. A recent issue celebrated the approach of the world’s population to 7 billion, and the implications therein. Long time readers of this […]

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Why Water Will Soon Become More Valuable Than Oil

If you think that the upcoming energy shortage is going to be bad, it will pale in comparison to the next water crisis. So investment in fresh water infrastructure is going to be a great recurring long term investment theme. One theory about the endless wars in the Middle East since 1918 is that they […]

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Who Expensive Oil Hurts the Most

Every time the price of oil spikes, we learn vast amounts of information about the global reach of this indispensable commodity. It’s like taking a non-core elective in geology at college. So I was fascinated when I found the chart of relative sector winners and losers below. No surprise that energy does best from sky […]

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January 24, 2012 – Quote of the Day

“Apple will never be a consumer products company,” said John Sculley, the Apple CEO who fired Steve Jobs in 1985. Today Apple is the world’s largest and most profitable consumer products company.

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