Abu Dhabi to the Rescue
Yes, the government investment fund of Abu Dhabi (One of the United Arab Emirates) came to the rescue of Citi Group. You will remember that Citi Group was hit hard from sub prime exposure. The Arab Emirate bought into Citi Group equity to the tune of some $7.5 Billion. This is likely to cause an upward bounce on the financials and, in particular, the financial ETF XLF.
Consumer confidence for November was reported yesterday at 87.3 which is down from 95.2 and much lower than expected. The shopping on Friday was high in volume, but shoppers were picking the greatly discounted items. Thus, profits in the retail sector are likely to be lower than anticipated.
Prices of homes were down in the latest reports in 20 major cities here. We are seeing a leveling off and decline in San Antonio now. There are many "For Sale" signs throughout the city. This indicates an increase in the inventory of homes for sale.
The ailing dollar still has great problems. Though the problems seem overwhelming, I do not believe we will see a total collapse of the dollar. It is likely to go much lower and I believe we will see it lose another 30-45% of purchasing power. Thus, our prices are bound to go upward across the board.
The recent injection of liquidity by the Federal Reserve and European Banks is not having the "planned" impact of greater borrowing. Consumers and businesses are taking a more conservative approach to credit. Perhaps, both are maxed out or at least concerned about debt.
The cartel still has a great influence over the price of precious metals: gold and silver. Asians, particularly in India and China, began buying in volume over the last days. This ran the prices upward over night while the US markets were closed. Then as the US markets opened, the price of gold was pushed down. Gold was up to about $815 over night and now has been pushed down to $802.50. Silver is at $14.38.
There appears to be little interest in gold and silver here in America. However, in India, it is extremely sought after for the wedding season and in China for retention of value. Many of our citizens are totally unaware of what is happening to the dollar and the security offered by the precious metals. There will come a time, as in late 1979 and early 1980 when one will here talk of gold everywhere. Then will come the parabolic rise in price as the lemmings, late comers, jump on board.
These times of lower prices are the times that we should bite the bullet and add to our portfolios. Gold at or below $800 an ounce is a bargain when the true value of gold should be well above that were it not manipulated. The trend of gold price remains solidly upward, just as the direction of the dollar is downward.
Timing in investment is critical to success. However, we are not privileged to know timing. However, we can distinguish trends as the Lord gives us wisdom. Practical wisdom, as well as, the bible tells us "the trend is our friend." We can observe the trend, but it takes courage to follow it in spite of what the world says. However, we have a God in Jesus Christ Who freely gives wisdom to all who seek it in His word and follow it to Him. Plan wisely, commit your plans to Him, move out to implement the plans, and leave the results to Him. He will show you the way either by giving you success or by failure directing you down another path.
Best to each, Doug
Consumer confidence for November was reported yesterday at 87.3 which is down from 95.2 and much lower than expected. The shopping on Friday was high in volume, but shoppers were picking the greatly discounted items. Thus, profits in the retail sector are likely to be lower than anticipated.
Prices of homes were down in the latest reports in 20 major cities here. We are seeing a leveling off and decline in San Antonio now. There are many "For Sale" signs throughout the city. This indicates an increase in the inventory of homes for sale.
The ailing dollar still has great problems. Though the problems seem overwhelming, I do not believe we will see a total collapse of the dollar. It is likely to go much lower and I believe we will see it lose another 30-45% of purchasing power. Thus, our prices are bound to go upward across the board.
The recent injection of liquidity by the Federal Reserve and European Banks is not having the "planned" impact of greater borrowing. Consumers and businesses are taking a more conservative approach to credit. Perhaps, both are maxed out or at least concerned about debt.
The cartel still has a great influence over the price of precious metals: gold and silver. Asians, particularly in India and China, began buying in volume over the last days. This ran the prices upward over night while the US markets were closed. Then as the US markets opened, the price of gold was pushed down. Gold was up to about $815 over night and now has been pushed down to $802.50. Silver is at $14.38.
There appears to be little interest in gold and silver here in America. However, in India, it is extremely sought after for the wedding season and in China for retention of value. Many of our citizens are totally unaware of what is happening to the dollar and the security offered by the precious metals. There will come a time, as in late 1979 and early 1980 when one will here talk of gold everywhere. Then will come the parabolic rise in price as the lemmings, late comers, jump on board.
These times of lower prices are the times that we should bite the bullet and add to our portfolios. Gold at or below $800 an ounce is a bargain when the true value of gold should be well above that were it not manipulated. The trend of gold price remains solidly upward, just as the direction of the dollar is downward.
Timing in investment is critical to success. However, we are not privileged to know timing. However, we can distinguish trends as the Lord gives us wisdom. Practical wisdom, as well as, the bible tells us "the trend is our friend." We can observe the trend, but it takes courage to follow it in spite of what the world says. However, we have a God in Jesus Christ Who freely gives wisdom to all who seek it in His word and follow it to Him. Plan wisely, commit your plans to Him, move out to implement the plans, and leave the results to Him. He will show you the way either by giving you success or by failure directing you down another path.
Best to each, Doug
posted by Doug @ 9:09 AM
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