Assisting The Markets

Ulli Uncategorized 11 Comments

The markets were more or less meandering yesterday, when the Fed threw a long unexpected pass to Wall Street, which saved the day. The assist came in form of an announcement (see arrow in chart) that they would inject some $1.1 trillion in an effort to support the economy. Wall Street nodded approvingly, and the rally was on. The decision …

Stewart vs. Cramer

Ulli Uncategorized 2 Comments

Last week, I posted “Who Supplies Your Investment Information,” in which Jon Stewart took a shot at CBNC’s quality (or lack thereof) of investment information. While you were probably enthralled with the current bear market rally, you may have missed the ultimate encounter between CNBC’s Jim Cramer and Jon Stewart. I don’t watch CNBC, but seeing Cramer get dressed down …

Running Out Of Steam

Ulli Uncategorized 1 Comment

A solid rally simply ran out of steam as yesterday’s chart clearly shows. The Dow, which was up some 175 points at one time, gave it all back as bullish sentiment faded into the close. Fed chairman Bernanke tried to chime in this weekend by attempting to spread a dose of optimism during a rare TV interview on ’60 minutes.’ …

Hedging: Reader Q & A

Ulli Uncategorized 4 Comments

Several readers have already implemented some sort of hedging strategy to protect themselves from sudden market downturns against existing holdings. One mistake I noticed has been what I refer to in my e-book as hedging apples with oranges. Just because you are holding certain securities in your portfolio does not mean they are suitable for hedging. The best way to …

Sunday Musings: The Inflation Scenario

Ulli Uncategorized 8 Comments

Lately, the most frequently asked question has been as to when inflation will be a threat again and how it will affect us. Mish at Global Economics referenced an article, which succinctly addressed this problem: Will this printing create [price] inflation? This is dependent very much on what money will do next. If banks will not lend and banks sit …

Dollar Destruction?

Ulli Uncategorized 6 Comments

Recently, reader Robert submitted a video clip analyzing the history of money printing and its recent acceleration. Take a look at it, and then we’ll discuss some of these issues: http://www.youtube.com/get_player Sure, long-term, there will be an inflationary effect, and I’ll comment more on that tomorrow. But what about the dollar? Will it be sharply devalued as the effects of …