Thoughts on Markets

Friday, September 30, 2011

Metals Holding Fairly Well - Silver is in my buying range - Several Miners look good, too - The general maket seems to be struggling a bit. - Let's look forward to the closing of this week markets Rejoice in the Lord

"This is the day the Lord has made. We will rejoice and be glad in it." We have often noted how wonderful the day can be when we focus on King Jesus. Otherwise, when we depend upon ourselves, others, or things, we wind up with unprofitable, joyless days. All of our true, lasting joy comes from our Sovereign King. It is not self generated through temporal times. 

We should spend much time in thanking Him and counting the blessings that freely flow to us from King Jesus. Even our next breath or heart beat is from Him. Praise Him daily!


Take Time to Say Thanks
Oliver North on honoring our troops. HERE.


Thoughts on GDP and inflation
Today's revisions to Q2/11 GDP growth were relatively small and thus not very significant, but I thought this chart was interesting. Note how nominal GDP growth has been running right around 4% for the past seven quarters. It's the composition of nominal GDP growth that has changed; real growth has declined, while inflation has risen (inflation being the difference between the blue and red bars). Put another way, the rise in inflation has corresponded to a decline in growth. You will find the graphs very interesting. HERE.


Consumer Spending in U.S. Slowed in August
Consumer spending in the U.S. slowed in August as incomes unexpectedly dropped for the first time in almost two years, forcing households to use up savings.
Purchases rose 0.2 percent after a 0.7 percent increase the prior month, Commerce Department figures showed today in Washington. A 0.2 percent advance in prices wiped out the gain in so-called nominal, or unadjusted, spending. Incomes decreased 0.1 percent, the first decline since October 2009  Economy not a rosy as presented to us. Of course, savings is better for the longer term than current spending which all Keynesians look to for growing the economy.  HERE.

SNB Ready to Defend Franc Cap With All Measures, President Hildebrand Says
Swiss central bank President Philipp Hildebrand said policy makers are ready to use “all measures” to protect their franc cap.
“The ceiling is there and it will be defended,” Hildebrand said at an event in Geneva late yesterday. He declined to give details or comment on the extent of the central bank’s currency purchases to maintain the cap, calling the measure “totally credible.” The Swiss seem determined to hold to the cap based upon the Euro. This continues to be a disappointment to many who have trusted the Swiss Franc for many years. HERE.

Global Company Bond Sales Plunge on ‘Armageddon’ Scenarios: Credit Markets
Corporate bond offerings worldwide plunged in the third quarter to the lowest level since Lehman Brothers Holdings Inc.’s 2008 failure as Europe’s sovereign debt crisis caused investors to shun all but the safest securities.
Hewlett-Packard Co. (HPQ), the world’s largest maker of personal computers, and Santa Clara, California-based chipmaker Intel Corp. (INTC) led borrowers issuing $543.2 billion of bonds in the past three months, according to data compiled by Bloomberg. Issuance fell 41 percent from the second quarter and 38 percent from a year ago as offerings by financial firms and junk-rated companies largely evaporated.
Bonds are not always the safest investment in spite of what most folks believe. HERE.


Wall Street sinks at the open after China data
Stock indexes fell more than 1 percent at the open on Friday, putting equities on track for their fifth straight monthly decline, as China's manufacturing shrank and stirred fears the global economy was slowing. HERE.


How inevitable is further upside for gold?

While the current global macro-economic picture still provides good reasons for higher gold prices, there are perhaps a few other factors at play that are worth considering. HERE.

Gold set for strong quarter despite worst month in nearly 3 yrs
Even though the metal is set to end September more than 10% down, its worst monthly performance since Oct. 2008, gold is on track for its biggest quarterly gain in 2011. HERE.

Miners from Scottrade:

Currencies from KitCo:
Some Prices: DOW off 54 to 11098; S&P off 11.17 to 1149.18; NASDAQ off 26.61 to 2454; Gold up 6.60 to 1622.50; Silver off 0.31 to 30.37.

Best to each, Doug



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