Reserves deplete faster than oil (in general) Oil/natural gas ratio: the price of oil divided by the price of natural gas is at an all-time high (or close). This ratio stands at 17 (historically it has been at about an 8 or so), Natural gas prices will go up, oil will decline, or both. Also, natural gas is not a good hedge [...]
The arguments for why one should sell the cat, pawn the mother-in-law and use the proceeds to buy gold are well known: The Fed is printing money faster than you can read this, which will result in inflation; the government is borrowing like a drunken monkey, so the dollar will be devalued; this will debase [...]
Gold is an important but very different asset class that competes with stocks and bonds. Unlike stocks and bonds, its main attractions are scarcity, durability and resistance to oxidation – it simply never stops shining. In fact, most of the gold ever mined is around today. It is exhibited in museums, worn as jewelry and [...]
Our emotions are our biggest enemy, at least when it comes to investing. We should all know this. If you don’t, stop making your own investment decisions right now. Our emotions lead us to do the opposite of what we should be doing. They lead us to buy high and sell low. They make us [...]
I spent my youth in Murmansk, a city in the northwest part of Russia, located right above the Arctic Circle. Murmansk owes its existence to the port that, due to the warm Gulf Stream, doesn’t freeze during the long winters, providing unique access to Russia from the north. During the Cold War, Murmansk’s coordinates must [...]
We often talk about how developments in the economy will impact the stock market, but we rarely discuss the other side of the relationship: how the market impacts the real economy. It does, and the current run-up in stocks is very positive for the economy. Here’s are three reasons why: 1. Banks can loan Financial [...]
Call it the wishful thinking of the guy who owns stock, but the news flow from the company this week was excellent:Microsoft (MSFT) MSFT did something very uncharacteristic. It did not push back the release of Windows 7, which will be released on Oct. 22. Bing is excellent. I played with it for a couple [...]
When I think of Microsoft stock, images of Susan Boyle in “Britain’s Got Talent” come to mind. The Scottish woman appeared — middle aged, awkwardly dressed, unsure of herself, unattractive by conventional (stereotypical) standards — and expectations of her singing were in line with her appearance. As long as she did not fall off the [...]