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Copper rose to the highest in more than 10 months in New York and London on speculation that demand is reviving after the Federal Reserve said the U.S. recession is easing and the two biggest euro-zone economies expanded.
Copper for September delivery gained 7.85 cents, or 2.8 percent, to $2.902 a pound on the New York Mercantile Exchange's Comex unit at 8:24 a.m. local time. The contract climbed as high as $2.93, the highest intraday price since Sept. 29. The metal for delivery in three months rose 3.2 percent to $6,386 a metric ton on the London Metal Exchange.
Copper for September delivery gained 7.85 cents, or 2.8 percent, to $2.902 a pound on the New York Mercantile Exchange's Comex unit at 8:24 a.m. local time. The contract climbed as high as $2.93, the highest intraday price since Sept. 29. The metal for delivery in three months rose 3.2 percent to $6,386 a metric ton on the London Metal Exchange.
- Bloomberg
Investing guru and publisher of the Gloom, Boom and Doom Report Marc Faber remains a bear, predicting a stronger dollar, tightening in global liquidity and another correction in asset prices.
When the S&P bottomed in March, the dollar was weak, notes Faber, who expects the next few months will be a period of dollar recovery and "a correction time in asset markets" as the dollar strengthens.
"The strong dollar means global liquidity tightening," Faber told CNBC. The worse the global economy, the more stocks could go up, Faber says, because the world’s central bankers have become nothing more than money printers.
"They're dangerous to the health of the global economy," Faber says.
"They created the Nasdaq bubble, the housing bubble, and now they want to create another bubble to bail them out."
When the S&P bottomed in March, the dollar was weak, notes Faber, who expects the next few months will be a period of dollar recovery and "a correction time in asset markets" as the dollar strengthens.
"The strong dollar means global liquidity tightening," Faber told CNBC. The worse the global economy, the more stocks could go up, Faber says, because the world’s central bankers have become nothing more than money printers.
"They're dangerous to the health of the global economy," Faber says.
"They created the Nasdaq bubble, the housing bubble, and now they want to create another bubble to bail them out."
- Newsmax
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Be Smart With Your Money... Buy This Guy
By Dr. Steve Sjuggerud Thursday, August 13, 2009 Be Smart With Your Money... Buy This Guy -
The Market's Beginning a Final Blastoff
By Dr. Steve Sjuggerud Wednesday, August 12, 2009 The Market's Beginning a Final Blastoff -
We're About to See a Massive Rally in the Dollar
By Tom Dyson Tuesday, August 11, 2009 We're About to See a Massive Rally in the Dollar -
My Real Objection to 'Paper' Gold
By Chris Weber Monday, August 10, 2009 My Real Objection to 'Paper' Gold -
The No. 1 Reason I Don't Trust This Market
By Tom Dyson Saturday, August 8, 2009 The No. 1 Reason I Don't Trust This Market
Are You the Smart Money or the Dumb Money?
By Dr. Steve SjuggerudFriday, August 14, 2009
Corporate insiders are selling...
The ratio of insider sellers to buyers reached "the second-highest extreme of the past six years," my friend Jason Goepfert reported yesterday on his website www.sentimentrader.com.
Who knows more about a business and its prospects than the insiders? Nobody. So when corporate-insider selling hits an extreme, it's a danger sign for the market.
Meanwhile, individual investors typically know less about investing than larger investors. And Jason also reported yesterday that individual investors are particularly excited about stocks again:
"The percentage of respondents in the American Association of Individual Investors survey moved to... one of the most extreme [bullish] readings yet of the bear market."
The message here is simple... The smart money (corporate insiders) is selling. Meanwhile, the dumb money (individual investors) is excited about stocks. The dumb money is buying.
Which group are you in now? Are you selling stocks, or buying them? Are you with the smart money or the dumb money?
Me? I'm with neither group... Here's why:
Corporate insiders often sell too early. They sell when they're scared... but the market usually continues higher for a few more months after they've sold. As I described two days ago here in DailyWealth, I believe I can catch those few more months (if they happen) – as I know they can lead to "blastoff" type gains. I hope to keep most of my gains by using tightened trailing stops.
Meanwhile, individual investors have been buying... and they've been right so far. Yes, we've now reached an extreme level of optimism for individual investors. But the trend in the market is still up. The trend is a powerful thing that can (and often does) go to a more extreme level than anyone imagines possible. The old saying is true... Don't fight the trend. So I won't.
We've had a fantastic bull run since March. And we're seeing the classic signs that it's near its end... The smart money is selling and the dumb money is buying. You shouldn't ignore those facts.
But we do have an incredible situation... The Fed cut interest rates to zero (which helps just about all assets soar in price) and we have a strong uptrend in stocks. You can't ignore those facts, either.
Right now, the Fed and the uptrend are trumping the reality of the smart and dumb money. So I'm staying in stocks. But as I explained two days ago, I'm moving a lot closer to the exit door...
Good investing,
Steve
The ratio of insider sellers to buyers reached "the second-highest extreme of the past six years," my friend Jason Goepfert reported yesterday on his website www.sentimentrader.com.
Who knows more about a business and its prospects than the insiders? Nobody. So when corporate-insider selling hits an extreme, it's a danger sign for the market.
Meanwhile, individual investors typically know less about investing than larger investors. And Jason also reported yesterday that individual investors are particularly excited about stocks again:
"The percentage of respondents in the American Association of Individual Investors survey moved to... one of the most extreme [bullish] readings yet of the bear market."
The message here is simple... The smart money (corporate insiders) is selling. Meanwhile, the dumb money (individual investors) is excited about stocks. The dumb money is buying.
Which group are you in now? Are you selling stocks, or buying them? Are you with the smart money or the dumb money?
Me? I'm with neither group... Here's why:
Corporate insiders often sell too early. They sell when they're scared... but the market usually continues higher for a few more months after they've sold. As I described two days ago here in DailyWealth, I believe I can catch those few more months (if they happen) – as I know they can lead to "blastoff" type gains. I hope to keep most of my gains by using tightened trailing stops.
Meanwhile, individual investors have been buying... and they've been right so far. Yes, we've now reached an extreme level of optimism for individual investors. But the trend in the market is still up. The trend is a powerful thing that can (and often does) go to a more extreme level than anyone imagines possible. The old saying is true... Don't fight the trend. So I won't.
We've had a fantastic bull run since March. And we're seeing the classic signs that it's near its end... The smart money is selling and the dumb money is buying. You shouldn't ignore those facts.
But we do have an incredible situation... The Fed cut interest rates to zero (which helps just about all assets soar in price) and we have a strong uptrend in stocks. You can't ignore those facts, either.
Right now, the Fed and the uptrend are trumping the reality of the smart and dumb money. So I'm staying in stocks. But as I explained two days ago, I'm moving a lot closer to the exit door...
Good investing,
Steve
WE'RE GETTING CLOSE TO THE DANGER ZONE
An update on last week's claim that it's "amazing what several trillion dollars will do to goose an economy."
It is not just amazing... It is truly, absolutely stunning what several trillion dollars will do to goose an economy. For proof, have an updated look at our frequent guest, copper.
As we mentioned last week, governments around the world are injecting huge amounts of money and credit into the struggling patient known as the global economy. All this Monopoly money is driving rallies in stocks and bonds. It's also driving a stunning rise in copper... the major building block of cars, refrigerators, power lines, computers, and houses. The metal is up 97% from its February low... and up 27% in just the past month.
Any sane person must be worried about all of this "funny money" debasing their paper currency... which will push up the nominal price of commodities like copper. Again, we encourage everyone to keep an eye on the $3-per-pound area. It is around this point that the market is saying, "looks like we have a dollar problem on our hands."
It is not just amazing... It is truly, absolutely stunning what several trillion dollars will do to goose an economy. For proof, have an updated look at our frequent guest, copper.
As we mentioned last week, governments around the world are injecting huge amounts of money and credit into the struggling patient known as the global economy. All this Monopoly money is driving rallies in stocks and bonds. It's also driving a stunning rise in copper... the major building block of cars, refrigerators, power lines, computers, and houses. The metal is up 97% from its February low... and up 27% in just the past month.
Any sane person must be worried about all of this "funny money" debasing their paper currency... which will push up the nominal price of commodities like copper. Again, we encourage everyone to keep an eye on the $3-per-pound area. It is around this point that the market is saying, "looks like we have a dollar problem on our hands."