Bitcoin Plunges Into Bear Market

UPDATE: BTC has rallied 26% off its lows in the last 55 minutes – with extreme volumes   From it's gold-matching highs at $1242 on Thursday night, the price of Bitcoin has collapsed over $400 (32%) to $840 on heavy volume. Of course, this is … [...]

A-Rod And Janet Yellen: What Valuation, Debt And The Fed Can Say About The Next Bear Market

Submitted by F.F. Wiley of Cyniconomics What Can Valuation, Debt and the Fed Tell Us about the Next Bear Market? We last wrote about stock valuation in August, when we looked at three types of P/E multiples and argued that stocks were more stretched t… [...]

Signs of a Top

The primary drivers of asset prices are the economy and corporate earnings. With that in mind, consider that both are rolling over today.   Indeed, when we take the big picture, we find that corporate profits, as a percentage of GDP are also at al… [...]

Margin Debt Soars To New Record; Investor Net Worth Hits Record Low

The correlation between stock prices and margin debt continues to rise (to new records of exuberant "Fed's got our backs" hope) as NYSE member margin balances surge to new record highs. Relative to the NYSE Composite, this is the most &qu… [...]

Guest Post: Madness… And Sanity

Submitted by Tim Price via Sovereign Man blog, β€œIn investing, what is comfortable is rarely profitable.” β€” Robert Arnott Valuations still matter. Assuming that one is ‘investing’ as opposed to ‘speculating’, initial valuation (i.e. the pri… [...]

Gold Beat Stocks Except During the Tech Bubble

Warren Buffett once noted, Gold doesn’t do anything “but look at you.” It doesn’t pay a dividend or produce cash flow.   However, the fact of the matter is that Gold has dramatically outperformed the stock market for the be… [...]

The China Inflation Problem and Its Impact For Markets

Elsewhere in the world, China’s government continues to walk a very thin line. China’s GDP is largely created by funneling easy credit (total credit is now at 200% of GDP) into infrastructure projects (a record 49% of China’s GDP is i… [...]

Proof Positive That the Inputs For 99% of Economic Modeling are Garbage

  The big news that has somehow shocked the media is that the BLS was caught fudging the jobs numbers going into the 2012 election.   How on earth is this news? Anyone with a working frontal cortex is aware that CPI, the unemployment numbers,… [...]

Bitcoin Trades Over $1000 On BTC China Exchange And Crashes 30% … Then Rebounds

Update: following the 30% drop to under $600 in seconds, BTC promptly rebounded to $800 in a few more seconds, as the entire BTC market is now just an algo arena.   * * * Putting to rest fears that today’s Senatorial hearing on digital currencie… [...]

The Dark Secret Of the Financial Services Industry

It’s almost never openly admitted in public, but the reality is that few if any investors actually beat the market in the long-term.   The reason for this is that most of the investment strategies employed by investors (professional or amate… [...]