In several articles in the recent past, I have opined that I am bullish on gold not just for 2016, but for the next decade. While gold has trended higher by 17% for YTD16, silver has surged by 24% during the same period and there are analysts who opine that silver has bottomed out and is set for renewed rally.…
Thursday, 21 April 2016 00:00

The Futility Of Low Interest Rates

The chart below gives the consumer credit growth from 2003 to 2015 that has been compared with the fed fund rates during this period. This chart serves as a good example to prove that artificially low interest rates do little to spur consumer spending and growth in real economic activity.     When policymakers started increasing interest rates in 2004,…
Thursday, 21 April 2016 00:00

Four Reasons To Be Bullish On Natural Gas

Energy prices have been depressed in the last 12-18 months and I have maintained my view that this is a good opportunity to accumulate quality names in the energy sector for the next 5-10 years. This article discusses four important reasons to believe that natural gas is a good investment theme for the next decade. While near-term uncertainty and volatility…
    Guest Article From Frank Holmes, CEO Of U.S. Global Investors   Last week our office was visited by my friend, investor and author Gianni Kovacevic, who is at the halfway point of a cross-country book tour to promote the latest edition of “My Electrician Drives a Porsche?” As part of the tour, he’s driving a Tesla Model S…
China’s GDP growth has been sluggish and I am of the opinion that even if China grows at 5% for the next decade, the growth can be termed as good for an economy that is gradually transitioning from production and manufacturing to consumption. China’s sluggish growth has impacted commodity producers significantly and industrial commodities have largely remained depressed since China’s…
    Guest Article From Frank Holmes, CEO Of U.S. Global Investors   After finishing its best quarter in 30 years, gold extended its gains, rising more than 17.2 percent year-to-date to become the best performing asset class among other commodities, U.S. Treasury bonds and major world currencies and equity indices. We are likely entering a new gold bull market,…
  After decades of isolation, the Southeast Asian nation of Myanmar is roaring ahead with the fasting growing economy in Asia in 2016, according to the Asian Development Bank’s Asian Development Outlook 2016.   Despite flooding that devastated one fifth of the country’s farm land, and moderating economic activity in the People’s Republic of China (PRC), Myanmar’s economy is expected…
Trading Idea - Whiting Petroleum (NYSE: WLL) has surged by 202% since February 25, 2016 on higher oil prices and slashing of investments for 2016, but the stock is due for correction as the Doha deal failed and oil is likely to decline. A 20% to 25% correction from current levels is entirely likely from current levels of $10.7.  …
Trading Idea Teekay Tankers (NYSE: TNK) is currently trading at $3.72 and I expect at least 15% to 20% upside for the stock in the next 1-2 months.     Idea Rationale First, Teekay Tankers has corrected by 46% in YTD16 and I believe that the stock has discounted concerns on new oil tanker supply in 2H16 and concerns related…
On March 22, 2016, Eurostat released data on government expenditure in the European Union and there are several reasons for concern for Europe. The Telegraph article on the same rightly puts things into perspective – “Europe accounts for just 7pc of the world’s population, and 25pc of its GDP, and yet it also accounts for a massive 50pc of its…