The dollar stayed in the tight range in which it has been trading over the past week. The range of the dollar index over the past 5 days has been just 0.71%. Talk about stable markets! We had a plethora of data released here in the US yesterday, with most of the numbers coming in below expectations. The big number was third quarter GDP, which was reported at 2.6% compared to an estimate of 2.8%. While the number failed to reach economists upbeat estimates, it was slightly higher than the previous estimate of 2.5% growth. Personal consumption for the third quarter also came in below expectations with a 2.4% increase compared to predictions of a 2.9% rise. And the final piece of data in the GDP group, the GDP Price Index, rose 2.1% versus survey estimates of 2.3%.[Read more...]
The dollar bulls really are having their way with the currencies, which is so weird given the fact that just two weeks ago, the negativity toward the dollar was running at a level I had not seen before… And then it turned on a dime… Hereâ€™s the skinny on this as I see it…[Read more...]
Choir…meet your Preacher.
Iâ€™m not here today to tell you anything new, but merely to reinforce what you already believe…to reinforce a good habit. The good habit is this: Investing in the Emerging Markets. Itâ€™s like flossing…or exercising; we all know weâ€™re supposed to do it, but most of us donâ€™t do it enough.[Read more...]
America has an economy that produces about $13 trillion of activity each year. America also has a Federal Reserve Chairman that produces about 13 trillion raised eyebrows each year.
Last week, in Jackson Hole, Wyoming, Bernanke raised a few more eyebrows by asserting that the Federal Reserve remains in control â€“ more or less â€“ of economic conditions here in the United States.[Read more...]
Nothing special happened on Friday. The Dow lost 21 points. Gold gained 7, to bring it back over $1,200.
Here at The Daily Reckoning our annoying forecast is that gold will fall. So will stocks.
Itâ€™s annoying because 1) both have been going up…and 2) we still think you should go with gold anyway.[Read more...]
Can you still buy a sports car for $10,000? We bought our first real automobile for $78. It was a ’37 Plymouth. Beautiful car. All original. And it ran well…for a while. We were only 16. We didn’t have a driver’s license yet, but we were getting ready.
Then, the first real, roadworthy automobile we bought – at 17 years old – was a ’61 MGA. Remember those? A little British sports car. A two-seater. What fun we had with that! We would play hooky from school, for example, and drive down to Chesapeake Beach. Or, we drove into Washington, DC, where we claimed to be over the legal drinking age and nobody asked any questions anyway. Or, sometimes we just drove around with the top down.[Read more...]
Well, it’s a new world, after all…
Maybe we were wrong. Maybe the mainstream economists are right.
You know, up to now all they’ve been good at was explaining why the forecasts they made in the past didn’t work out. But maybe they’re right, after all. Maybe up IS down. Maybe better IS worse. Maybe you can squander trillions of dollars and yet have more![Read more...]
According to the US government statistics, we have nothing to fear any longer with regards to our economy, inflation, deficit spending, interest rates, etc., for you see, the fourth quarter GDP had a preliminary print of +5.7%! It’s all seashells and balloons for us now, folks… That’s what the cable news guys said, and that’s what’s all over the newswires. Forget about saving; go out and spend… Everybody’s doing it, they say! Just fork over those gold coins; there’s no reason to buy them any longer… Everything is fine here in the US. There’s nothing to see here, move along…[Read more...]