Econ Base

What Really Backs the U.S. Dollar?

Agree with the reader above. The American taxpayer is the primary backer of USD.
Read portfolioforlife.blogs...

Four Inflation Hedging Investment Strategies

TIPs are unproven. Be careful.
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Today in Commodities: Time to Diversify

"......Gold and silver should not have much more downside in the short run so we should be getting long futures for clients sometime this week."

I don't think this can be applied blanket to all. All depends upon specific situations of a given portfolio whether to buy gold/silver. Stick to a predetermined assett allocation and avoid another bubble in your portfolio.

portfolioforlife.blogs...

Commodities, Globality and the Next Billion Customers

For now commodities seem to have had their run. Better to stay on the sidelines with some cash in hand. Buy precious metals if you have none otherwise cash is king and better to be patient with long term in mind. Read portfolioforlife.blogs...

Jim Rogers Shares His Thoughts on the Market

".......Rogers thinks that the stock market will eventually hit new lows this year or next year after the bear market eventually subsides."

Need to stay conservative. Ensure you have adequate cash.........and back your cash with gold and platinum!
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5 Reasons to Avoid the Gold Rush

".........Over the last 200 years, gold was really not a good investment. It may have a day in the sun, but it may not. And the cost of being wrong is fairly high."

hmmm...I think the cost of not owning precious metals and their proxies including precious metal mining stocks is potentially very high.

Central bankers used to back paper currencies with gold. They no longer do. So we need to do it ourselves. One should not put all his money in precious metals but a portion of it. It is like an insurance policy. I discuss the formula of assett allocation at: portfolioforlife.blogs...

Bond Expert: Friday Wrap

"............However,I do think they will reiterate their devotion to keeping rates at zero for an “extended period”. "

Agree. The real reason is that the US consumer is now trying to save. Therefore there will be no economic growth for a while.

Read: portfolioforlife.blogs...

Don't Expect Hyperinflation for U.S. Economy

The Fed is desperately trying to create inflation. They will succeed eventually, because they are printing money. It will take some time however, because 1) the US consumer is in a mood to save and 2) Joblessness will rise.
Stay very cautious in these uncertain times.
Read: portfolioforlife.blogs...

Will The U.S. Dollar Crash?

In the context of this article, take a look at: portfolioforlife.blogs.../

What Does ETF Money Flow Tell Us About Gold?

since central bankers are not backing their currencies with precious metals, we need to do it ourselves. Read this:
portfolioforlife.blogs.../

Palladium as an Investment: Worth Considering?

Palladium may be hardest to dspose off. So why bother when other more liquid instruments in Platinum, Gold and silver exist?
portfolioforlife.blogs.../

Gold Still Linked to Dollar Movements

Gold will be linked to dollar since it is priced in dollars.
portfolioforlife.blogs.../

The Importance of the Dow-Gold Ratio

The Fed in the pursuit of "price stability" and fear of deflation, are desparately trying to inject inflation. They won't be able to turn the "deflation" control knob as easily as they have turned the "inflation" knob. This means precious metals will keep rising. I bought Platinum at $995 earlier this year. Gold due to its wider acceptance and due to the various instruments available to trade (such as ETF's) tends to be preferred vehicle. There is a place for Platinum and Gold in everyone's portfolio. Dollar may get stronger in next few days and is that a buying opportunity for Gold and Platinum? Good luck. I will do a posting if I buy or sell again at:
portfolioforlife.blogs...

All Retirement Investing Involves Risk

"Unfortunately, some people consider Cash/Money Markets/CDs et.al. as investments. This is a dangerous assumption"......."I do consider bonds an important part of my asset allocation."

These are conlicting statements - CD's are really Bonds that are held to maturity.

Does India's Election Signal an Upturn?

"Much credit needs to be given to the efforts of Rahul Gandhi, 39, the son, grandson and great-grandson of Indian prime ministers"


I cannot understand why a country of billion plus people cannot find political talent outside the dynastic rulers. Something is fishy. Where are the Obama's (highly educated left) and John MacCain's (patriotic right) of India?