CRB Spot Index Hits All-Time High
Is it deflation that we should be worried about? According to the Fed, inflation is too low. That may be a temporary problem. The CRB commodity spot index just hit a new all-time high. The index is up 15% YTD. Read More →
Bernanke’s Biggest Fear
The Fed created an uproar on Wall Street this week by changing the language in its post-meeting Federal Open Market Committee (FOMC) statement. The FOMC is, of course, the committee that sets monetary policy at the Federal Reserve. The new language that excited investors was the following: Measures of... Read the full story
Stocks with the Highest Prospective Returns
For decades, I have advised my monthly strategy report subscribers to invest in stable companies with entrenched competitive positions, strong balance sheets, and a history of paying dividends. Many of the stocks I advise are considered high-quality stocks. What is a high-quality stock? There are varying... Read the full story
Auto Loans Getting Longer
Here is an interesting chart. This shows the length of new car loans in months. Some car buyers are now financing auto loans for up to six years. The average, according to the below chart is 64 months. Either cars are lasting longer or buyers are reaching to buy more car than they can afford. Read More →
Don’t Miss This Opportunity
Long-term interest rates are at their lowest level in over four decades. Today, the Treasury can borrow money for 30 years at an interest rate of less than 4%. Adjusted for trend inflation, Uncle Sam is looking at a rate below 1%. Long rates of less than 4% are even more surprising given the sorry state... Read the full story
The Record High Price of Gold: A Currency Story
Gold reached a record high on Tuesday, closing at $1,271.70 per troy ounce. It is up over 15% this year. That’s great for gold investors, but what does it mean for the currency in which it’s being quoted, the U.S. dollar? Relative to gold, the dollar, as shown in the chart below, is worth only two-thirds... Read the full story
China’s Real Inflation Rate
What’s China’s Real Inflation Rate? by Dexter Roberts, Bloomberg Businessweek “There has been a jump in prices that isn’t reflected in the numbers,” says Chinese Academy of Social Sciences economist Yu Yongding, who formerly served as an adviser to China’s central... Read the full story
Swiss Franc Smashes U.S. Dollar
The Swiss franc blasts through parity with the U.S. dollar. The franc is up more than 14% versus the USD since hitting a low in June of this year. Read More →
3 Reasons to Invest with Caution
At Young Research we maintain three cyclical stock price indexes—an early cyclical index, a late cyclical index, and a stable growth index. When evaluated together, the relative performance of these indexes versus the S&P 500 serves as a useful real-time indicator of the economy. The benefits of... Read the full story
From Alan Abelson’s Always Informative Barron’s Column:
Let’s Hear It for Bad Estimates – Alan Abelson, Barron’s “China, it turns out, doesn’t report gross-domestic-product data as most everyone else does. It announces a growth rate, but neglects to supply a quarterly breakdown of real demand. Absent such vital information, it’s... Read the full story
