A TOUGH WEEK FOR PRESIDENT OBAMA
President Obama was met by strong language from China’s chief banking regulator hours before he arrived in China.  Chief regulator Liu Mingkang said a weak dollar, low interest rates, and other actions have “led to massive speculation".  He was saying, in effect, that the U.S. carry trade (a process [...]

TO PUT IT MILDLY, WE WERE SHOCKED
Does the Obama Administration want the U.S. dollar to decline?  We believe it does.  On November 5th, the U.S. Federal Reserve announced that they intend to keep “interest rates exceptionally low” for an “extended period of time.”  Given that the U.S. Dollar is already under pressure due to low [...]

Dear CIGAs,
Last week, we had a short-lived rally in the U.S. dollar predicated on the unrealistic view that a weaker U.S. economy would send gold and oil down and the dollar up.  Only algorithm writers who are completely ignorant about stock and commodity markets could believe that a poor U.S. economy is actually good for [...]

CLOUD COMPUTING
A new era in computing and delivery of information has begun.  If you aren’t yet familiar with cloud computing, you probably will be soon.  We expect there to be an onslaught of news articles, editorials, and advertisements about cloud computing accompanying Microsoft’s launch of their new computer operating system, Windows 7.
The term cloud refers [...]

WILL INFLATION RETURN?
In the last twelve months, wheat, corn, soybeans, and the prices of many soft commodities and foodstuffs have fallen at the wholesale level.  This has been due to a cool and rainy summer in the Midwestern U.S. and in Europe, and a strong soy crop in Brazil.  The old saying held true in [...]

Dear CIGAs,
THE MIDDLE EAST AND ITS IMPACT ON STOCKS AND COMMODITIES
Many of our wise friends have been concerned for years that the world will see another Middle East war.  Simultaneously, others who we respect are currently concerned that peace in the Middle East will cause oil prices to fall. Recent news coverage of the Iranian [...]

Dear CIGAs,
The end of September is here.  We wish you a happy and healthy fall season in the northern hemisphere and spring in the southern hemisphere.
THE G-20 MEETING
Last Thursday and Friday, the G-20 meeting was held in Pittsburgh.  At this meeting, it was decided that world economic power, which had been the bailiwick of the [...]

OUR OVERALL THINKING IS LEADING US TO FOCUS ON A FEW SECTORS NEW TECHNOLOGIES
The technology of the moment, as we all know, is the handheld device.  It is part phone, part computer, part game console, part camera, part GPS system, and music player, and it is evolving very [...]

U.S. TO SELL MORE TIPS
China has requested more security in the value of the U.S. bonds that they hold. To answer this need, the U.S. has agreed to sell more inflation protected treasury securities.  These bonds can protect investors because the bond’s effective return to investors rises (albeit after the fact) if inflation rises.
The problem [...]

Dear Friends,
Where available, I believe you should give significant consideration to taking delivery of your investment shares.
Where not available, you might consider an alternative investment that does deliver shares. I can assure you from personal knowledge few people, even here, have exercised that right.
People simply will not make the small effort to protect themselves.
Where you [...]