One reader asks: I found fascinating your understanding of the correlation between interest rates and real estate.  By your definition the slashing of interest rates by the Fed to all time low mortgage rates did not put a floor to real estate prices but exacerbated the low in real estate.  Essentially you are saying that if the […]

The Republican-controlled House today approved legislation that will prevent a government shutdown on March 27 and blunt the impact of newly imposed spending cuts on the Defense Department. The vote was 267-151 and the Senate Democrats now hope to give additional Cabinet agencies similar flexibility in implementing their shares of the $85 billion in spending cuts […]

Senator Rand Paul, Republican of Kentucky, began a truly old-school filibuster, speak-until-you-drop on Wednesday just before noon. This truly a historic day when only ONE Senator will stand up for the Constitution. Remember prosecuting American soldiers for shooting civilians in Vietnam? It was called a massacre. To think that nobody else in Washington will stand […]

We have to keep in mind that the world economy has not fully recovered. Trading volume on a global scale is about half of what it was in 2007. The Dow is ONLY making new highs in dollar yet. The low volume is actually bullish from the standpoint it is not OVERBOUGHT. We will see […]

The Exchange Traded Funds were dumping gold significantly with the largest outflow to date. This is good for reducing the long-positions opens the door to future buyers. Just holding and never selling is what the Japanese did and we see what that has produced. Those who only advocate buying are not analysts. Anyone can always […]

During the Great Depression, there were countless suicides. People jumping out of buildings because they lost everything and could not face a future that was destitute. The photographs of such scenes will live forever. The same is taking place throughout Southern Europe today and it is a cry for fiscal responsibility upon government. In Italy, […]

The Gold backwardation has been distorted as all sorts of reasons for everything. Normally, this is the market condition wherein the price of a forward or futures contract is trading below the expected spot price at contract maturity. Consequently, the resulting futures or forward curve is “inverted” whereby it is negative because gold is trading […]

The SHANGHAI Daily has reported one of the greatest problems with taxation. China has been trying to curb real estate speculation. In Singapore, the passed legislation that you cannot borrow for a mortgage that would not be paid-off by the age of 65. That is at least more direct. China has imposed a 20% tax […]

The Dow Jones Industrials has rallied in the face of incredible skepticism with a litany of reasons why it shouldn’t be happening, that are of course all domestic oriented. This is fantastic for it shows the market is NOT historically at a high. Bubbles come when the vast majority claim the rally will never end. What is […]

Understanding correlations is important. EVERYTHING fluctuates! There is absolutely nothing that remains constant. You MUST understand that correlations are NOT one for one, and often show changes in advance of turns. It is a lot to keep track of but this is why I try to post a global view to help you see the […]