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Why Warren Buffet Hates Gold

The “Oracle of Omaha” expounded at length today on why he despises the barbarous relic. The sage doesn’t really care if the yellow metal hit an all-time high today of $1,440. He sees it primarily as a bet on fear. If investors are more afraid in a year than they are today, then you make […]

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August 15, 2013

Global Market Comments August 15, 2013 Fiat Lux Featured Trade: (CALIFORNIA MONEY DOWN THE DRAIN?) (DEATH OF THE CONSUMER), (SPX)  S&P 500 Index (SPX)

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California Money Down the Drain?

Who was the top paid state employee in California last year? The governor? The Chief Justice of the Supreme Court? How about the leader of the Senate? Nope. It was a prison psychiatrist who took home an eye popping $838,706, most of it in overtime. I love it! The state drives people insane by sending […]

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The Death of the Consumer

I often get asked why I never put out “BUY” recommendations on consumer discretionary stocks. I promptly send them in search of the latest consumer spending figures at the Bureau of Economic Analysis, which do not paint a pretty picture (click following link  http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm). Since 2008, quarterly spending has come in at a scant 0.5%, […]

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August 14, 2013

Global Market Comments August 14, 2013 Fiat Lux Featured Trade: (END OF THE COMMODITY SUPERCYCLE, OR NOT?) (CU), (DBA), (USO), (FCX), (BHP), (ABX),  (RIO), (JPM), (GS), (ECH), (EWZ), (IDX) (BRING BACK THE SMOKE FILLED ROOMS), (SPX), (TBT) First Trust ISE Global Copper Index (CU) PowerShares DB Agriculture (DBA) United States Oil (USO) Freeport-McMoRan Copper & […]

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End of the Commodity Supercycle, or Not?

When I toured Australia a couple of years ago, I couldn’t help but notice a surprising number of fresh faced young people driving luxury Ferraris, Lamborghinis, and Porsches. I remarked to my Aussie friend that there must be a lot of indulgent parents in The Lucky Country these days. “It’s not the parents who are […]

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Bring Back the Smoke Filled Rooms

In days of old, when congressional impasses presented themselves, the Speaker of the House, rosy-cheeked Tip O’Neil, would meet his counterpart in the Senate for a night of poker. Several bottles of Scotch later, a deal would get struck, and the two would be photographed together shaking hands the next morning, talking about the good […]

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August 13, 2013

Global Market Comments August 13, 2013 Fiat Lux Featured Trade: (THE BOND CRASH HAS ONLY JUST STARTED), ($TNX), (TLT), (TBT), (INDIA VS. CHINA), (FXI), (PIN), (INP), (TTM) 10-Year Treasury Note ($TNX) iShares Barclays 20+ Year Treas Bond (TLT) ProShares UltraShort 20+ Year Treasury (TBT) iShares China Large-Cap (FXI) PowerShares India (PIN) iPath MSCI India Index […]

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The Bond Crash Has Only Just Started

When I was a little kid in the early 1950’s, my grandfather used to endlessly rail against Franklin Delano Roosevelt. The WWI veteran, who was mustard gassed in the trenches of France and was a lifetime, died in the wool Republican, said the former president was a dictator and a traitor to his class, who […]

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India vs. China

When I first visited Calcutta in 1976, 800,000 people were sleeping on the sidewalks, I was hauled everywhere by a very lean, barefoot rickshaw driver, and drinking the water out of a tap was tantamount to committing suicide. Some 35 years later, and the subcontinent is poised to overtake China’s white hot growth rate. My […]

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August 12, 2013

Global Market Comments August 12, 2013 Fiat Lux SPECIAL MYKONOS ISSUE Featured Trade: (HOW THE EURO LOOKS FROM MYKONOS), (FXE), (EUO), (GREK) CurrencyShares Euro Trust (FXE) ProShares UltraShort Euro (EUO) Global X FTSE Greece 20 ETF (GREK)

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How The Euro Looks From Mykonos

When I sat down at my table at the Namos Restaurant, I was somewhat puzzled by the handful of sand thrown on every table. Are the Greeks as untidy with their food service as they are with their national accounts? Namos is on the south beach of the Greek island of Mykonos, part of the […]

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August 9, 2013

Global Market Comments August 9, 2013 Fiat Lux Featured Trade: (AMBUSH IN AUSTRALIA),  (FXA), (FXY), (FXE), (YCS), (NLR), (UNG), (GLD), (DBA), (REPORT FROM MILAN) CurrencyShares Australian Dollar Trust (FXA) CurrencyShares Japanese Yen Trust (FXY) CurrencyShares Euro Trust (FXE) ProShares UltraShort Yen (YCS) Market Vectors Uranium+Nuclear Enrgy ETF (NLR) United States Natural Gas (UNG) SPDR Gold […]

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Ambush in Australia

For a lifetime central bank watcher, like myself, this was one for the record books. Reserve Bank of Australia, Glenn Stevens, said last week that he welcomed a weak Australia dollar and that it probably had further to fall. To put gasoline on the flames, he added that there was room for the RBA to […]

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Report from Milan

Milan, Italy appears to be a city entirely populated by fashion models riding bicycles on the city’s frenetic, cobblestone streets. That is one’s first impression coming out of the monolithic Milano Centrale train station, built by Mussolini to reaffirm faith in his state. Despite years of allied bombing during WWII, the building is as imposing […]

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