Mixed picture on global inflation

Inflation in New Zealand, inflation in Dubai, low, inflation in Vietnam, low, inflation in India, low, little inflation in China, low inflation in Denmark, low inflation in Australia, low Indonesian inflation, and seemingly low inflation in The United States.

But what about American inflation – can we look deeper? The chart above shows [...]

Hey American consumer feeling any poorer?

You should be. Between shrinking wages and low but relentless inflation the wealth of the American consumer has been steadily eroded. From time to time I’ve looked at the consumer price index, or CPI and it’s effects on various investible assets. But some folks find rather abstract metrics such as CPI a tad difficult [...]

The cost of an education in America

The incessant stream of happy news most people pay attention to (instead of looking at data and crunching the numbers themselves) continues to reassure that [...]

A new front in currency wars

The surprise news out of Cyprus last week certainly intensified dollar strength we’ve seen over the past month. The chart above shows the year to date performance of the US Dollar (USD, green area curve) compared to the Euro ($XEU, red line), Pound Sterling ($XBP, pink line) and the Yen ($XJY, black line). Since [...]

And so the currency wars …

Last month’s G20 finance ministers meeting in Moscow ended with the proclamation they would “refrain from competitive devaluation”. Well, someone should tell the left hand what the right hand is up to. The chart above details the Yen index ($XJY, black line) and Pound index ($XBP, blue line) compared to the US Dollar index [...]

Anything but the US $

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Even though over the past year gold has markedly under performed other assets, for example only increasing 4.45% compared to the S&P 500′s 20.97%, Central Bankers reportedly haven’t lost the faith. In fact in 2012 Central Banks have purchased gold at levels not seen since 1964. What’s going on?

Simple, the United States [...]

The long term view

Here is one of the bigger themes that you have to be aware of when investing in the markets today: dollar debasement. In other words, the weakening US currency and its impact on investible assets. The chart above shows both the US dollar (red line) and gold (black line) over the past ten years. [...]

Whatever it takes

Just a few months ago things were looking pretty grim for Europe. Greece melting down, Spain wobbling, Portugal, Ireland, Italy all looking positively creaky when viewed through the prism of bond yields, let alone investor’s perceptions. But what’s this? The chart above shows the Euro ($XEU, Euro Index, black line) compared to the US [...]

Releasing oil from the SPR?

With the average price of gas $3.70 a gallon, up almost 9% from a month ago and an election approaching, what a surprise we’re hearing rumours about an “emergency” release of oil from America’s Strategic Petroleum Reserve (SPR). Curious about the effects of previous releases on the price of oil, I thought I’d look [...]

Three reasons commodities might collapse

In March I wrote about commodities, suggesting they might be a nice trade if for no other reason than many hedge funds were now bullish on that sector. Over the past month commodities have sharply increased, particularly so many agricultural prices as illustrated in the chart above. Soybeans ($SOYB, blue), wheat ($WHEAT, red) and [...]