Gold and silver still the best protection against the derivatives blow up that started with JP Morgan’s loss
The immediate reaction to the $2 billion and counting loss at JP Morgan has been a flight from risk trades and a sell-off of all financial assets, gold and silver included. However, investors ought to…
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Commodity price weakness points to lower prices for industrial equities.
On Bloomberg’s ‘Chart Attack’, Wells Fargo’s Gina Martin Adams and Adam Johnson look at the relative performance of commodities to the S&P Industrials and S&P 500. The fall off in commodity prices is almost always…
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Return to old-fashioned banking will carry a high cost in low or no economic growth
The bores are back in banking. Slow moving and scelerotic institutions like the Canadian banks are being praised to the rooftops for prudence. Sure, if you never do anything or take a risk in life…
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Why the Greek euro exits means a second global financial crisis
The stakes could hardly be higher. Greece leaving the euro is no minor event that can be contained. The immediate losses to eurozone banks might look manageable but the contagion impact will not be nearly…
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Derivatives meltdown at JP Morgan is far from over
Bloomberg’s Stephanie Ruhle reports on Jamie Dimon’s disclosure of JPMorgan’s $2 billion trading loss, how regulations may have forced his hand in revealing the loss and that there may be further huge losses yet to…
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How euro money printing is going to drive up gold and silver prices
Those investors panicking now and selling their gold and silver will feel as sick as dogs when they see what happens next to prices. For after a bleak patch lasting at most a couple of…
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Why the European banks don’t fool stock analysts
A canny item on Bloomberg’s “Insight & Action” has Adam Johnson explaining European bank capitalization and why investors are not happy with it.
This helps us to understand why the report and accounts of Bankia,…
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So far stock market investors have sold in May and gone away
The Dow Jones has just finished its biggest six-day fall since August last year in a classic fulfillment of the old stock market adage ‘Sell in May and go away!’
Depending on your reference that…
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Watch for QE3 as the bottom to this drop in oil, gold, silver and stocks
The summer shake-out is upon us with a vengeance. Assets priced for a vibrant recovery are being repriced for stagnation or decline. Sell in May and go away never looked a more appropriate stock market…
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FX Concepts sees Greece out of the euro this summer
Bloomberg TV’s Erik Schatzker and Sara Eisen talk to John Taylor, founder of the world’s largest currency hedge fund FX Concepts, who says that Greece will leave the euro this year.
He went on to…
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