A populair view why commodities are cheap does focus on deflation in general. Deflationists tell a story about the commodities bubble that popped in 2008, around the same time the banking crisis hit the financial markets. Maybe accurate during that time, but this is a narrative of the past. It is no longer helpful when … Continue reading Why commodities are cheap.
Corporate bonds are bought by investors for the purpose to supplement their income. Bonds are an important category of the fixed income market. This is a good time to take a look at why companies are borrowing money by selling bonds. The graph below shows in the first quarter of 2020 there’s an execrated phase … Continue reading The inevitable fate of corporate bonds; the day comes to show it are emptied bags
Ongoing government and central bank interventions has transitioned the economy and financial markets into zero sum games. It means that profits are private but losses and risks are transferred to the public. Profits are made at a high cost, by putting society in a position of disadvantage. These are no longer markets based on exchange … Continue reading The madness of ‘zero sum game’ world
If there was still any doubt that western socialist governments are not in a bubble yet, well I can say that there’s no reason left over to keep that doubt alive. They are into a big bubble! In socialist paradise they usually sell you that education, health care, and other welfare programs are free. Even … Continue reading The ultimate Socialist Paradise of Free money
When I was a child I remember listing often to a song by Louis Amstrong “It’s a wonderful world”, one of my mom’s a favorite songs. Is the world wonderful and rosy as in this song or should we adjust that optimistic, rosy world view? Let me start by staying that the world is wonderful … Continue reading Thoughts on growing into an effective trader
In 2011 the markets taught me an important lesson. It was the year of the Euro crisis and Gold was topping. I just had started to find my way in the financial market jungle when I decided to buy gold miner stocks, not realizing they were close to a market top. My simple thinking was … Continue reading Looking back and ahead, my view on markets
Central Banks want inflation while pumping up the stock and bond market. If you are looking for inflation, look there. My best guess is that they know damn well that inflation won’t stay there. If they did homework, they have learned from 2008. Central Banks wanted inflation and they got it, but not where they … Continue reading What is next? Thoughts on the Central Bank Chess Game