Speculators may be running for the exit doors on talks of more government involvement in the futures market, but I feel their exit may be premature seeing that the government is just talking at this point. Since the government has not screwed things up enough they are now discussing more stringent controls in the commodities […]
Tag Archives | MB Wealth
Perception vs. Reality
The latest advance in stocks and commodities with the fall in treasuries and the US Dollar, could in fact be a precursor of what is to come but the pace of the advances and declines is flawed. These spectacular moves in such a short time are irrational and almost always not true. Stocks are moving […]
Supply & Demand in Commodities
It is viewed by many that a modest increase in commodity prices is a sign that demand is coming back to the market. We need to point out demand is only one side of the equation, the other being supply. We do agree that once prices stabilize we could see further upside, as the global […]
Are the Stress Tests causing you Stress?
According to several news sources the US government will issue a report on April 24th that explains its stress test on 19 of the largest financial firms and then release the actual results of those tests on May 4th. What these tests should confirm is that we have issues in our banks and in order […]
Half Empty or Half Full?
As G-20 leaders met last week to deal with the global crises there seems to be a growing sense that the worst of the financial crisis may have past. We couldn’t disagree more and think there are still rough times ahead. The FASB approved a change in accounting standards that gives banks more flexibility in […]
Is Diversification Key in Preserving Wealth?
The Federal Reserve reported that the net worth of US households was down 18% in 08′, the biggest drop in 57 years of record-keeping. You can no longer expect to gain 10% a year on your real estate, buy and hold no longer works in the stock market and 3% on long term Treasuries is […]
Less is More
This is not about more taste or less filling but rather the more government involvement and meddling in the markets the less likely we will get a prompt recovery and return to a sustainable economy. What should be on your radar this week is the USDA report, and the approaching OPEC and FOMC meetings. If […]
Not Your Average Cup of Joe
Coffee prices have been predicted to rise in 09’on expectations of smaller supplies around the globe being that the 09-10′ harvest is an off year. Demand seems to be inelastic: when coffee prices rise individuals don’t tend to reduce their coffee consumption accordingly and when the prices fall, consumer demand does not seem to increase […]
Capital Preservation vs. Capital Appreciation
There is a significant difference between preservation and appreciation. In this environment traders/investors must be at the top of their game as unpredictability is widespread and the magnitude of movement in all asset classes is voracious. We want to expand upon one of our posts from last week titled, “nerves of steel“, you must have […]
Is this Reflation?
You can put lipstick on a pig but it’s still a pig. The stimulus may be necessary, but it will eventually cause inflation. No one knows what the full package price will be, however we are now approaching $770 billion in round 2 of the “economic stimulus” package. This massive government spending should lift growth, […]