Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.
The major indices staged another incredible rally this week on the heels of a very economically-optimistic Bernanke and Obama. Both believe the recession is over. . . cause for celebration, right?
If I don't deliver 20 double-digit gains in one year. . .
I'll give you $1,999!
Click here for more. . .
Not so fast. The dollar suffered more setbacks earlier this week, sending oil and gold through the roof.
Gold raced well above $1,010. Oil was racing back to $75. . . and natural gas surged off recent lows, helping Pure Asset Trader and The $20 Trillion Report readers realize some wildly impressive gains.
More in just a moment. . .
————————————-
For now, in case you've missed any of the recent top stories from Wealth Daily and our companion publications, we've included them below.
Top Silver Stocks: 5 Silver Companies Increasing Production
Gold World's Luke Burgess talks about five top silver stocks that are expecting an increase in silver production, as the greatest silver rush in history has just begun. . .
Energy Efficiency Stocks: No Need to Freeze the Goldfish
Green Chip Editor Nick Hodge covers energy efficiency stocks after Energy Secretary Chu discussed the topic on national radio. . .
The 95% Success Rate Portfolio
Oil prices are rising so fast that the International Energy Agency just increased its world oil demand forecast for 2009, mid-year. According to IEA analysts, we can expect demand to spike an average of $3.6 million barrels a month. . . and we plan to be right there to profit again and again.
Top Dividend Stocks: You Decide: Wal-Mart Greeter or Life of Leisure?
Wealth Daily Editor Steve Christ picks two top dividend stocks and explains why income investing is the key to your retirement.
The Silver Stock that Paid Annual Gains of 852% Over 9 Straight Years
Investors knew that a massive silver strike would give this unknown company the fifth-largest silver mine in the world. . . A mine expected to produce 10.9 million ounces a year.
California Renewable Energy: The Governator Gets the Veto Pen
Energy & Capital Editor Nick Hodge discusses California renewable energy as related legislation makes waves in the news.
Japan's High Speed Rail: Bullet Train Technology May Hit the U.S. Soon
Sam Hopkins points out why Japan's economic fortunes are tied to the expansion of America's high-speed rail infrastructure.
China's Electric Car Market: China in the Spotlight at the Frankfurt Motor Show
Wealth Daily Editor Brian Hicks tells us why China's car market is the Holy Grail of the automotive industry and reveals his stock pick for rare earth metals.
Gold Baron Reveals His Most Precious Secret: You Can Double Your Investment Dollars with His Latest Find
This gold baron traded physical gold for 11 years. . . and single-handedly turned everyday investors into millionaires. Now he's revealing his most coveted secret: an investment play that pays two to one in gains.
———————————
Also making headlines this week: Is the Bear Market Really Over?
The bear market has ended and a new bull market is raging. Hooray!
At least that's the "guess" of the top U.S. economists who predict the economy will grow in Q4 2009 through the first half of 2010.
But let's not get ahead of ourselves.
When those same economists predicted the economy's worst recession since the Great Depression, stocks and commodities rallied hard.
Now, just mere months later, the Fed boss wants us to believe the worst is really over.
The only thing that's changed in this market is the psychology. You see, as optimism grows, so does the perception of a recovery. The market participants act as sheep. . . and follow the herd.
But what supports this recovery?
Large numbers of people are unemployed.
Banks aren't lending. Consumers aren't spending. And credit is contracting at rates comparable to the Great Depression.
The global shipping industry is crawling.
Foreclosures are mounting.
Commercial real estate is drowning.
Still, from a technical standpoint, the recession is very likely over according to Ben Bernanke: "It'll still feel like a very weak economy for some time because many people will still find that their job security and their employment status is not what they wish it was," he says.
But why would any one listen to this guy?
This is the same Fed boss who once said we didn't have to worry about subprime spillover into the greater economy; told us a recession wouldn't happen; was slow to reduce interest rates and is now reluctant to raise them. . .
So why put any confidence in what he says now?
But I think Nassim Taleb put it best:
Ben Bernanke saved nothing! He shouldn't be allowed in Washington. He's like a doctor who misses the metastatic tumor and says the patient is doing very well. The first thing I would tell Chinese officials is how can you buy U.S. bonds as long as Larry Summers is there? He's a textbook case of overconfidence. Look what happened to Harvard's finances. They took a lot of risk they didn't understand, and it was a disaster. That's the Larry Summers mentality.
Today, we still have the same amount of debt, but it belongs to governments. Normally, debt would get destroyed and turn to air. Debt is a mistake between lender and borrower, and both should suffer. But the government is socializing all these losses by transforming them into liabilities for your children and grandchildren and great-grandchildren.A lot of the growth of the past few years was fake growth from debt. So swallow the losses, be dignified and move on.
But other than a technical "recession-ending" argument, the powers that be could soon declare a recession end, thanks to capacity utilization, which climbed for the second straight month. According to the report, U.S. manufacturing used close to 70% of total capacity in August — its highest read since February.
$1.76 Million Per Megawatt
That's the going rate for wind energy.
And in the next 10 years. . . over 446,000 megawatts will be installed.
That presents a market worth $785 billion.
Click here to learn about 3 stocks that will easily double as that happens.
Better yet, housing starts rose to the highest levels in nine months and manufacturing in the Philadelphia region expanded more than forecasted, adding to evidence of an economic recovery.
Elsewhere, that pesky U.S. versus China trade issue entered a whole new realm of absurdity and wackiness.
It looks like we have an international game of "chicken" on our hands.
Earlier this week, the Obama Administration tried to boost U.S. manufacturing with a 35% tariff on Chinese tires. So China fired back with a WTO complaint and a rumor of doing the same thing to American chicken and auto parts.
And while it appears the "boiling" controversy may be all talk, it seems the Chinese have a quite an appetite for chicken feet. "We have these jumbo, juicy paws the Chinese really love," said a New York Times expert, "so I don't think that they are going to cut us off."
Yep, America contends that the Chinese appetite for chicken feet is so great that it'll crush the trade dispute!
Good Investing,
Ian L. Cooper
Wealth Daily
