irondoor91

The Real Reasons Fertilizer Stocks Are In the Dirt

The longer one continues with fundamental analysis and value-based investing in these names, the more money will be lost. The question is, how are these companies going to perform in a deflationary environment, and how do they scale back to respond to it.

While Gartman is Goldless, I Still Itch for Commodities

Gold, Silver, Commodities are all hedges against shortages, but primarily inflation-causing increases in the money supply due to overly-generous lending by the banks.

Banks no longer have lending capacity. They are reducing to preserve capital. Their collateral (real estate) is sinking like a rock. Individuals and companies are pulling in their horns and attempting to clean up their own balance sheets. They have no capability to borrow more, since borrowing now actually requires the demonstrated ability to pay back what you owe.

In other words, its deflation that is coming, not inflation. This is recognized in the declining prices for oil, gold, silver, other commodities, etc.

The best investment over the past 8 years has been cash. It will continue to beat everything else until we are at the end of the banking crisis, probably around 2014. Try paying for gas or groceries with a gold coin.