Thoughts on Markets

Tuesday, January 25, 2011

FVITF - BULM - OLVRF - HHWW - REMX - General Mkt Down - Metals still correcting.


This could be a time that the Lord is testing His people. Hebrews Chapter 12 talks extensively about how the Lord Jesus Christ through the Holy Spirit brings trials upon His people to help them grow into the likeness of King Jesus. In fact, we are told that if we are not disciplined, then we may not be His. 

However, we are told in 1Co 10:13:  "There hath no temptation taken you but such as is common to man: but God is faithful, who will not suffer you to be tempted above that ye are able; but will with the temptation also make a way to escape, that ye may be able to bear it."

God does not test or discipline His people beyond what they are able to stand. He loves His people and through discipline makes them ever less sinful and more attuned to His way. Praise Him daily!

Town Hall:
Thomas Sowell
New Heroes vs. Old
When I mention that my family used kerosene lamps when I was a small child in the South during the 1930s, that is usually taken as a sign of our poverty, though I never thought of us as poor at the time.
What is ironic is that kerosene lamps were a luxury of the rich in the 19th century, before John D. Rockefeller came along. At the high price of kerosene at that time, an ordinary working man could not afford to stay up at night, burning this expensive fuel for hours at a time. HERE.

Town Hall:
Chuck Norris
Obama Orders Study on Socialism
Under the radar this past week was President Barack Obama's executive order for a review of government regulations in hope of showing that bigger government isn't bad news for economic growth and business.
Of course, the president didn't word it that way. In his op-ed piece in The Wall Street Journal, Obama wrote that he just wants to "make sure we avoid excessive, inconsistent and redundant regulation." Expect to have a report which hides most of the socialistic trend and larger government. HERE.

Mine Web:
Gold touches 10-week low
The yellow metal slipped to its lowest in 10 weeks on Tuesday putting it on a course for its worst monthly performance in 13 months. It has moved down too quickly and could be over sold. However, it is well to remember that over sold and over bought conditions can persist for longer than we expect. I plan to lighten up some of my miners should we get a good bounce here. HERE.

Below is GLD, our proxy for gold. This is not a happy graph. However, the lower volume for the last 2-3 days may be testimony to a coming upward bounce. We should hope so, anyway. Notice the wild moves on the daily graphs for both gold and silver. There is much excitement and fear in this. 
Mine Web:
Everyone Needs Commodities - US Global Investors' 2011 outlook
With emerging markets continuing to grow and their various middle classes expanding so, commodity demand is likely to increase. US Global has several commodity funds including two in precious metals which I use for some of my grandchildren. The often have good, sound articles. HERE.

Mine Web:
Yesterday's Top Story: Japanese auto manufacturers seek rare earth alternatives
Toyota and at least two of its suppliers are forging ahead on technology that would reduce the use of rare earth magnets in automotive engines destined for electric and hybrid cars. As China moves to restrict export of rare earth minerals under her control, this may become critical. Currently, there are not good replacements for the rare earths. Read the article HERE. Richard Russell has reported that he is moving into REMX which is an ETF that is designed to track rare earths mining, refining, etc. 

Miners from Scottrade:

Currencies from Kit Co:

Some Prices: FVITF 3.56; BULM 1.02; OLVRF 1.222; HHWW 1.845; REMX 23.25; DOW off 17.33 to 1961+; SPX off 2.63 to 1288+; Gold off 9.70 to 1324.80; Silver off 0.24 to 26.72. The metals continue to correct very steeply. "How long, O' Lord?" The Lord knows and reveals it to us as He sees fit in His timing.

Best to each, Doug


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