Tuesday, April 12, 2011

Special Reports: Gold vs. Oil: Underpriced Or Overvalued?

European Interest Rate Hike May Foretell Shift in Fed PolicyBy Jon D. Markman, Contributing Writer, Money Morning
Stocks traded with all the precision of a baseball skipping into the Boston Red Sox outfield over the past week, which is to say it was pretty sloppy. The major equity averages settled near the flat line, but it was a mess getting there after the European Central Bank raised rates for the first time since mid-2008, there was a 7.1 magnitude aftershock in Japan, and Texas Instruments Incorporated (NYSE: TXN) bought a rival chip maker at incredible premium.

Read More: http://moneymorning.com/2011/04/11/european-interest-rate-hike-may-foretell-shift-in-fed-policy/

Oil Price Inflated, Time to Take Profits From Resource Related Investments
An April 7 Bloomberg News survey indicated that oil prices may rise on speculation that elections in Nigeria will curb output and the Libyan conflict will halt exports.  Nevertheless, the current market snapshot remains in total contradiction to the oil bull’s assertion that both WTI and Brent (front month for the next 30 days) sitting at 2+ years high…and climbing, are driven by these aforementioned ‘market fundamentals.’

Read More: http://seekingalpha.com/article/262835-oil-price-inflated-time-to-take-profits-from-resource-related-investments-in-your-portfolio

Gold vs. Oil: Underpriced Or Overvalued?
No one agrees what the “fundamental” price of gold is. What’s indisputable is that the price went up by 400% over the past ten years; thus the “Gold Bugs” are purring like fat-cats full-up with fresh milk. Their indisputable logic is that the price went up, they got it right, and that proves their logic was correct; it’s hard to argue the other side of that debate.

Read More: http://www.econmatters.com/2011/04/gold-vs-oil-underpriced-or-overvalued.html

The QE2 Trade Is Over: Can We Start Dumping Risk Assets Now?
By Edward Harrison, March 28, 2011

    "The Fed could announce a federal funds target of 3% but the tsunami of excess reserves now out there swamps any conceivable demand, so the Fed funds rate would be guaranteed to remain stuck at zero. The target would be meaningless."

    ~ Ryan Avent as quoted in Why the Federal Reserve wants to drain excess reserves, Dec 2009.
Read More: http://www.econmatters.com/2011/04/qe2-trade-is-over-can-we-start-dumping.html

OPEC Needs Higher Oil Prices
OPEC is about to make history.
According to the International Energy Agency, the oil cartel will make $1 trillion in export revenues this year, a new all-time high. Talk about a gusher!
Read More: http://www.investmentu.com/2011/April/opec-needs-higher-oil-prices.html

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