Dr. Doom is Bearish on Everything; Iran – Welcome to Hyperinflation; Lest We Forget…
Which way the markets? One of my favorite market commentators is bearish on most everything.
MARC FABER: I’m Bearish On Stocks, Gold And Everything Else http://www.businessinsider.com/marc-faber-bearish-on-practically-all-assets-2012-10?utm_source=twbutton&utm_medium=social&utm_campaign=moneygame via @themoneygame
But for now the gold and stock markets are looking bullish.
Where gold is concerned, the Iranian Rial slumped 20% overnight as measures taken by Iran’s leaders to stabilize its currency have failed. This has spurred more demand for gold at the exchange in Tehran. We have in the past talked about rapid inflation in Iran. It now appears as if the country will soon be dealing with full fledge hyperinflation.
Economic data is a mixed bad. Consistent with the recent trend of data Construction Spending fell .6%, but low and behold, the National PMI while still in contraction mode, rose more than expected to 49.7 or just a hairs width away from the all important 50 line of expansion. This is presumably why the stock market is a happy place today.
Other Gold related headlines…
Gold trading firm raided by five agencies: KUALA LUMPUR, Oct 1 — Gold trader Genneva Malaysia Sdn Bhd was today … http://bit.ly/SSvp5E
Here’s a good question that Tyler Durden of ZeroHedge.com asks. Are we smarter for having survived the financial meltdown of just about 4 years ago?
“Leading up to the American Financial Crisis. We all had the data, we all saw the sub-prime mess, we all saw the leverage, we all saw the money handed out for nothing and the non-disclosure documents, we all saw the lack of credible ratings supplied by the ratings agencies and yet we went on like it would all continue forever. We ignored it all. We turned our backs but then; we got scalped and so the prime questions must be asked: Are we wise men or are we fools? Did we learning anything from the last go round? Should we act now before we are scalped again considering we only have one head? Since the American Financial Crisis the world has lived off the largesse of the major central banks. It has been a slippery slope and each capital injection or “save the world” speech has been met by risk-on and higher markets as liquidity floods the system. It is a judgment call on our part but we think we are about done with the effectiveness of moves by the central banks.” Read more here: http://www.zerohedge.com/news/2012-10-01/lest-we-forget
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Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
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