Monday, January 22, 2018

Precious metals are an attractive investment for 2018 | Market overview

Marc Faber in the interview with GoldSeek talks about Central Banks balance sheet and how the market has become very vulnerable. 

Other topics discussed as follows
-Previous metals could move up huge this year.

-Cryptocurrencies boom could be over. The main reason cryptos has gone up is pure speculation.
-Stock market is overbought.

-Possibly not a bad time to raise cash. This is the asset class that is most neglected at the present time. Everybody wants to hold real estate, stocks, cryptos. Marc Faber makes the bullish case for cash by saying, "I would say why dont you hold some cash."

-The Japanese Yen and Japanese Shares could rally.

-The Euro could go higher.

-The bond market is clearly manipulated otherwise the interest rate in Europe and US would not be this low.

-Young people may be the losers with the loose monetary policies. Dr Faber says, "I benefit from this money printing."

Tuesday, January 2, 2018

2018 to see market leadership changes and downside volatility

"Asset markets enjoyed a superb 2017. It is doubtful that in 2018 all asset markets will appreciate in concert as they did in 2017." 

"Rather, I expect that some diverging trends among asset prices will emerge and that the expected change in leadership will bring about some painful downside volatility."

Related Article
Market Forecast for 2017 

via gloomboomdoom

Monday, January 1, 2018

China's success does Not come from stealing foreign trade secrets

Excerpt from Gloomboomdoom

Under the title E Pur Si Muove, Sam Altman who is a successful investor in new technologies wrote:

“Earlier this year, I noticed something in China that really surprised me. I realized I felt more comfortable discussing controversial ideas in Beijing than in San Francisco. I didn’t feel completely comfortable - this was China, after all - just more comfortable than at home.  
That showed me just how bad things have become, and how much things have changed since I first got started here in 2005. 
It seems easier to accidentally speak heresies in San Francisco every year. Debating a controversial idea, even if you 95% agree with the consensus side seems ill-advised. This will be very bad for startups in the Bay Area.” 

Altman further observed that, 
“Restricting speech leads to restricting ideas and therefore restricted innovation - the most successful societies have generally been the most open ones. Usually mainstream ideas are right and heterodox ideas are wrong, but the true and unpopular ideas are what drive the world forward. Also, smart people tend to have an allergic reaction to the restriction of ideas, and I’m now seeing many of the smartest people I know move elsewhere."

I am quoting Altman because there are so many people that believe China's economic success is due to its violations of property rights and the blatant theft of Western trade secrets. The fact is, however, that China as well as other countries have developed their own home bred technologies and knowledge based industries, which was a consequences of the multinationals' process of outsourcing.