Research on a Cyclical Business; The bubble in front of our faces

debt fueled buybacks

commodities pct below all time high

1-Incrementum-Inflation-Signal

Repeat after me: All markets are cyclical, all markets are cyclical, all markets are cyclical.

xau spx

A good example of research for a simple, cyclical business

JAC_Simple Digressions Oct 25 2015 46 cents ENERGOLD

More here: http://prostedywagacje.blogspot.com/2015/10/impact-silver-cheap-stocks-but.html

Perspective on the mining market and gold: Van Eck Joe Foster Gold-Public-Monthly-Commentary-2015-10

And be careful, The Bubble in front of our faces………http://hussmanfunds.com/wmc/wmc151116.htm

5 responses to “Research on a Cyclical Business; The bubble in front of our faces

  1. “No stock-market crash announced bad times. The depression rather made its presence felt with the serial crashes of dozens of commodity markets. To the affected producers and consumers, the declines were immediate and newsworthy, but they failed to seize the national attention. Certainly, they made no deep impression at the Federal Reserve.”

    James Grant – The Forgotten Depression (1921: The Crash That Cured Itself).

  2. Thanks, nice comment. The commodity markets were pushed up on mal-investment caused by easy credit and now (five years or more) have been correcting. Regular stocks will NOT be spared if history is any guide.

  3. Agree. “By printing more money and suppressing interest rates, the U.S. central bank sought to stimulate aggregate demand, but also inadvertently stimulated aggregate supply, he said. That has led to more capital expenditures, production and oil supply.”

    http://www.cnbc.com/2015/08/24/jim-grant-central-banks-can-and-should-override-the-price-mechanism.html

  4. Also zero interest rates destroy capital. Savers speculate. Borrowers face a higher and higher burden as interest rates decline.

  5. Pingback: Articles for Your Coffee (11/20/15) | Financial Breakfast

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