According to Gluskin Sheff’s analyst newsletter with David Rosenberg, he believes that thanks to ‘china’ who he predicts will make huge purchases of the precious metal, gold could reach $2,600. Gold currently now stands at $1,200 an ounce…

Source: read more Rosenberg: Gold Going to $2,600 Thanks to China

In a published report today by the Economist Intelligence Unit and Barclays Wealth, 2,000 wealthy people from around the world were asked their opinions about the future of their money….

Source: read more Wealthy Investors Call Bottom of the Market with Show of Faith in Property

According to ‘Dr.Doom’ NYU Economic’s professor and world economist Nouriel Roubini, who last year predicted the U.S. fallout, for the “first time in decades, there are sovereign risks among developed Western countries,..”

Source: read more Entire countries face bankruptcy

According to Yahoo! Finance, here are 7 stocks you should know for Monday: Frontline – NYSE:FRO, the oil tanker company, The Bermuda based, gas transport company Golar LNG – NasdaqGS:GLNG, Propane company, Inergy -NasdaqGS:NRGY, Patriot Transportation – NasdaqGS:PATR, Popular clothier, Guess? Inc – NYSE:GES, Bristol Myers Squibb’s – NYSE:BMY, & Eli Lilly’s – NYSE:LLY…

Source: read more TradingMarkets 7 Stocks You Need to Know for Monday

According to a report on the Bloomberg website back in February, Canada had at the time the world’s best financial system. President Obama was even there to see it, and even HE said it was true…

Source: read more Obama in Canada Finds World’s Best Financial System

While the world markets were left shaken over the last few days, based on Lenders concerns about the heavy debt of ‘Dubai World’, Dubai’s neighbor Abu Dhabi may come to ‘Dubai’s rescue to calm investor’s fears…

Source: read more Abu Dhabi rides in to rescue Dubai from debt crisis

As the finger pointing begins, one thing is for sure, “Dubai World’ lenders will have to fight it out to get their money back. Let the lenders ‘war’ begin..

Source: read more How Dubai’s dream sank in a sea of debt

G.M.I.C? I get into detail on that a bit later, but first I need to cover a couple of some key points.

Since late last year when the Global financial crisis hits which brings huge shock waves to the world’s financial system.That was just the beginning, as I dig in and gather facts and figures bit by bit further till I reach a point that its going to be bad as how I’ve see its unfolding.

I did mention by a couple of months or weeks ago that the rise in the stock market indexes and real estate price rises are not the leading indicators of economic activity.

These two are more prone to inflation where both government intervention and corporate spending goes like pump drugs into the system which is sick of debt and overload with money from other people’s savings or they print money out of thin air while currencies losing value particularly in the US.

You have already seen the Dubai World debt crisis where that state owned company owns $66 Billion, while all of the major stock markets around the world reacted in a bit of a panic for two reasons.

First, they sold off shares in fear of their share holdings are exposed to the Dubai World debt worries. Second, they are fearing for the possibility of the return the financial crisis back during late 2008. In Max Keiser’s view he thinks this is a second of the financial crisis that will lends the world into a depression.

To me, I think that is real possibility here, where as a lot of business and individuals in the next couple of months or two years will file for bankruptcy due to heavy leveraging such De leveraging is still continuing for a long period of time. These are the  signs that I’m looking out for the depression.

If you ever wondering what do mean by G.M.I.C?

It means Global Monetary Inflationary Crisis. I tell you why:

Globe: The most of the world’s economies will be hit hard the with the deepest depression that they have never seen before since the great depression due to the huge expansion of credit, money supply, bad government and monetary polices that lead us into this mess.

Monetary: The money supply will going to be tight and the value of currencies will face a huge correction, it means the value of currencies will fall or raise against each other depending on how well its economies are performing.

Inflationary: The rise of inflation will more prominent than ever before, due to the large supply of excess money being printed by the polices to support the US dollar from losing value and to stimulate the most of the world’s economies.

Crisis: There will be social problems, political tensions, trade pacts broken, trade protectionism, nationalistic leaders emerging, tighter immigration policies, civil unrest, failed countries and economies collapses.

Moving on from economics to Art!

Art is capturing the human spirit as the trends research forecaster points out that the US needs a rebirth, a Renaissance (a new Renaissance as I like to called it) just like Art brought Europe into the Renaissance from the black plague. Arts and entertainment will thrive on to lift up peoples spirits and let the good times goes on.

If you brave enough to read more about the Trends Research Institute top trends for this year, go to this link:

http://www.trendsresearch.com/journal.html

Thats all from me for this weekend and have a great weekend everybody.

Cheers

Khoa Huynh.

No news may be the best news, but according to several well known financial industry experts, including banking analyst Meredith Whitney, the US could now very well be headed into a ‘double dip’ recession…

Source: read more Could U.S. see a double dip recession?

More news(bad) on the US economy, and it just keeps on coming. Now we are hearing word that yet another ‘big bang’ is about to hit. Do we now live in ‘Crisis Central’?…

Source: read more Another Crisis Looms Right Around the Corner

What do you think? According to a recent research report by ‘Goldman Sachs’, the market will see one of it’s biggest rally’s of 2009 by the end of December…

Source: read more Goldman Sachs says Big Rally ahead

The following Banks all have the highest risk factors exposed with loans to ‘Dubai World’: Dutch banker ING Group, Woori Financial Holdings, Shinhan Financial Group Co., Ltd, and HSBC Holdings plc….

Source: read more Banks with high risk factors to Dubai World

The debt heavy ‘Dubai World’, and its economy and the uncertain future that may go with it, sent a shockwave throughout the world markets today…

Source: read more Dubai debt hurts stock marketss

Anthony Bolton the legendary Fidelity fund manager wrote an exclusive article reviewing the past decade
and making predictions for the next one. His wide ranging piece covers the future of commodities, emerging markets, growth in the West and fund management.

Given the great man’s surprise return to fund management with a China fund, Credencis reproduce below exclusive extracts:-

Emerging markets

The stars of the past decade have been the emerging markets – Asia ex Japan has risen from 5% to 14% and the Rest of the World from 5% to 13% – so that these markets (which include some no longer categorised as ‘emerging’) account for over a quarter of the investible universe today. These shifts have resulted from a combination of currency and share price movements as well as new companies coming to the market and the inclusion in the index of some new markets.

Having an exposure to emerging markets over the past 10 years has been a significant advantage and, given the ongoing impact of the financial crisis on the developed world, I expect the relative growth of the emerging markets to
continue.

Shifting sectors

It’s not just different markets that have waxed and waned but also sectors. In the UK, basic resources, oil and gas between them accounted for just 13% of the market a decade ago – today that has more than doubled, largely at the
expense of healthcare and telecoms. The increased weighting of commodity shares reflects their strong performance
in the last bull market and strong bounce this year. However, I am less optimistic about these sectors looking forward and think the best areas will be companies that can show above average growth in a low growth world. Being in
the right sectors has mattered in the last 10 years and will continue to do so.

But the winners in a bull market are rarely the same as the leaders in the previous cycle.

Impact of the financial crisis

I guess any review of the last 10 years is not complete without some reference to the financial crisis. This was the sixth banking crisis I have experienced in my 38 years in the business and I’m sure it won’t be the last. We are fortunate to have governments in the West who have learnt from the past and acted quickly and decisively to address the situation.
My concern is that, in solving today’s immediate problem, they have saddled some of the world’s leading economies with a longterm cost in the form of interest payments on a much increased level of government debt. I believe that
this will result in lower growth rates in the West than would otherwise have been the case.

How professional fund management will evolve

Looking forward, I would be surprised if the next 10 years were as disappointing as the last 10 for the world’s stock markets as a whole. However, even if they are not, I think investors’ recent experience will lead during the next decade to a blurring of the edges between hedge funds and the traditional longonly world.

The Ucits III framework is already pushing in this direction. As my two successors on the Fidelity Special Situations and Fidelity Global Special Situations funds demonstrate, the fund manager of the future will need to be skilled in being short of shares as well as long.

How to run money

I think that there are three things an investor must do:
• be organised
• focus on the different and unusual
• and know what you are not interested in.

Credencis offer bespoke investment advice in an ever changing financial climate. We are situated near to Derby, Leicester, and Nottingham.

Credencis

“Live for today, Invest for tomorrow”

The Asian markets are in full swing with recent recent and upcoming IPOs. Here is a list..

Source: read more Asian IPOs

OptionsXpress is currently offering new customers a $100 sign up bonus when they open a new account with a minimum of $500 by December 31…

Source: read more OptionsXpress $100 Sign Up Bonus

The yield on the 2-year Treasury note continued to decline last week and finished the week at a lower yield than at the start of 2009..

Source: read more CFP Jeff Rose – 2-year treasury note

Advanta had been plastering their ads for high yield investment notes paying as high as 11%..

Source: read more Darwin’s Finance

The ‘bad’ News? One of the country’s most successful developers says rampant investment in commercial property has undermined China’s long-term prospects..

Soure: read more Financial Times: China’s Bubble’s

Porter Stansberry writes: The world’s best investors don’t see the market the way you do…

Source: read more World’s Best Investors..

So the question becomes, what do you do for a return?..

Source: Read more Jim Cramer ‘Real Money’

Russia’s Interior Ministry fired back at investor William Browder, rejecting allegations they were to blame for the jailhouse death of a lawyer who worked for him..

Source: read more Wallstreet Journal

Marc Faber Sees War Against an Invented Enemy and a Big Financial Bust

by Michael Shedlock

Inquiring minds are reading In his gloomiest prediction yet, Marc Faber sees big financial bust leading to war.

Marc Faber, the Swiss fund manager and Gloom Boom & Doom editor, said eventually there will be a big bust and then the whole credit expansion will come to an end. Before that happens, governments will continue printing money which in time will lead to a very high inflation rate, and the economy will not respond to continued stimulus.

Speaking at a conference in Singapore on Wednesday, Faber said: “The crisis has not solved anything. On the contrary there is less transparency today than there was before. The government’s balance sheet is expanding, and the abuses that have led to the one cause of the crisis have continued”.

“I think eventually there will be a big bust and then the whole credit expansion will come to an end,” Faber added.

“Before that happens, governments will continue printing money which in time will lead to a very high inflation rate, and the economy will not respond to stimulus”.

In one of his Gloomiest predictions, Faber, referred to as Dr Doom, said “the average family will be hurt by that, and then in order to distract the attention of the people, the governments will go to war”.

“People ask me against whom? Well, they will invent an enemy,” Faber said.

“At some stage, somewhere in future, we will have a war – that you have to be prepared for. And during war times, commodities go up strongly,” said Faber.

“If you want to hedge against war, you don’t want to own derivatives in UBS and AIG, but you have to own them physically, like farmland and agricultural commodities. That is something to consider for you as a personal safety and hedge. You have to own some commodities,” he added.

Discussion of Ideas From The Article

Faber: There will be another war and it will be against an imaginary enemy
Mish: I certainly agree the next war will be against an imaginary enemy. Nearly every war is against an imaginary enemy and/or of no vital interest of the US. WWI, Korea, Vietnam, and Gulf War II were all needless. WWII was a direct result of WWI. The “War on Terror” is preposterous. Terror is a method. Waging a war on a method against an enemy that has no real country is bound to fail and waste a lot of money in failure. As for where next, given Obama’s sabre rattling against Pakistan, that is one place to keep an eye on. Iran is another.

Faber: The S&P 500 and the Dow Jones will go down relative to gold.
Mish: I concur. The question is in what way. The key word in the above sentence is “relative”. Gold can easily stay flat, rise, or drop while the bottom falls out of the S&P.

Faber: Eventually there will be a big bust and then the whole credit expansion will come to an end. Before that happens, governments will continue printing money which in time will lead to a very high inflation rate, and the economy will not respond to stimulus.
Mish: The economy is not responding to stimulus right now, at least in any meaningful way. 100% of the GDP growth was directly related to government stimulus. The idea that government spending can start a genuine economic recovery is ridiculous. Nonetheless, government spending can start an artificial boom. The housing bubble is an example of an artificial boom. However, for a boom to start, individuals and businesses have to be willing to go along.

That is the way it works in a credit based economy. Right now personal credit is contracting, credit card lending is falling, and businesses simply do not want to expand in the face of tax increases and high unemployment. Unless and until the Fed reignites another credit boom, high inflation is unlikely. The fear now should be more of what Congress does than what the Fed does. Yet it seems Congress is getting a bit leery over these huge deficits. Congress will spend of course, but will it be enough to matter much? I doubt it, at least until we have more purging of consumer and corporate debt via bankruptcy.

Faber: US government will increase its stimulus spending should the Standard & Poor’s 500 Index fall toward 900.
Mish: Agreed but it will not help for reasons stated above.

Faber: The S&P will not drop below 800 or 900, and eventually will go higher in nominal terms, but not necessary in real terms. A correction is coming in the near term.
Mish: I doubt the bottom is in, but it could be. If it is in, then I expect a retest closer to 700 than 900. It is conceivable the S&P drops to 500, which by the way I think is fair value. Japan had two lost decades and I expect the US will have them as well.

Faber: The capitalistic system ‘as we know it today’ will collapse.
Mish: Agreed. The credit based fiat model of fractional reserve lending and fabrication of money out of thin air has reached its pinnacle. See Fiat World Mathematical Model for more details. Global wage arbitrage and outsourcing are icing on the cake. Mathematically it is impossible for the current Ponzi scheme of ever increasing levels of debt to survive. When and how it finally blows up is the only issue.

Faber: Central banks will continue to print money at full speed, but long-term this strategy will lead to a fall in purchasing power and living standards, especially in developed countries.
Mish: Agreed

Faber: The years 2006 and 2007 were “the peak of prosperity” and the world economy is not likely to return soon to that level.
Mish: Agreed. I had quite some time ago proposed Peak Credit and her twin sister Peak Earnings have arrived. Here is a snip from the former. … That final wave of consumer recklessness created the exact conditions required for its own destruction. The housing bubble orgy was the last hurrah. It is not coming back and there will be no bigger bubble to replace it. Consumers and banks have both been burnt, and attitudes have changed.

Faber: The best way to deal with any economic problem is to let the market work it through.
Mish: Agreed

Faber: The way communism collapsed, capitalism will collapse.
Mish: I disagree on a technicality. Capitalism will not collapse, because we are not practicing capitalism. Instead, we are practicing a perverse blend of corporate fascism, socialism, corruption, and padding of the pockets for and by those running the country. Yes, that will collapse.

Faber: “No decent citizen should trust the Federal Reserve for one second. It’s very important that everyone own some gold because the government will make the dollar (in the long term) useless.”
Mish: No decent citizen should trust any central bank anywhere. The problems go far beyond the Fed and in the long run all fiat currencies are worthless. Fiat currencies do not float, instead they all sink at varying rates.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post ListMike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific

Signs of wariness are appearing in financial markets as investors worry that the end of the year could bring challenging trading conditions…

Source: read more The Wallstreet Journal