Financial Sense Blog

We keep saying this market is driven by underlying fundamentals. In going through valuations for a broad swath of companies on our list we are impressed that, despite some large recent gains, as a group they are at or below levels justified by current metal pricing. We still think the resource market is closer to noon than sunset. However, noon is when the shadows shift around and we don't lack for caution.

Once Again Structural Changes in the COT continued in the latest report; week ended December 14th 2010, most notably in the Adjusted Net Open Interest (3,318 contracts decrease). This is one of the more important line items to keep an eye on as it has been showing the total size of the Commercial position in silver declining.

Good morning. At this time of year, it is very easy to lose sight of the market drivers. Between the shopping, the gatherings, spending time with family, and the weekend skiing (it is dumping in Colorado right now) last week's stock market action can seem like a million miles away come Monday morning. So, while the bulls may just keep on keepin' on with the Santa Rally this week, let's take a moment to review.

We're heading into a chaotic couple of trading weeks. With Christmas and New Year's back to back, the financial market's volume could be very choppy, and stock prices could be the same way.

Currency is the soul of a nation. Central bankers are sacrificing that soul to increase their power and control.

If the market was up for the usually negative first two years of the current Four-Year Presidential Cycle will it be down over the last two years of the cycle?

You know how when you’re pushing against something heavy and unyielding—a heavy door, say, or maybe a car stuck in a ditch—and all of a sudden, the thing you were pushing against abruptly yields? What happens? Why, you fall forward, of course. This is what’s happening to the United States: After the long struggle of the Cold War, America is falling forward.

Prior to the 1930s, it was not legally possible for a U.S. municipality to declare bankruptcy as no legislation existed covering this event. The growing number of insolvent towns during the 1930s depression necessitated a change in the Bankruptcy Act.

None can foretell the future, and yet the shape of what we face can be shrewdly estimated with enough attention to historical trends; with broad contextual understanding; and with sufficient insight into the character of leaders, their societies, and the structures which define their basis.

It is year-end and time to look ahead to where the economy is going. The path has already been largely charted for the coming year. Congress has passed an extension of the Bush tax cuts and also extended unemployment benefits. The budget cost of this de facto tax-stimulus package is estimated at $800 billion, not because of increased spending but because of its implications for reduced tax revenues.