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Bernanke's Empty Gun

Written By Brian Hicks

Posted June 27, 2010

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.

Stop the roller coaster — I want to get off.

After another rough week for the markets, investors have begun to get that queasy feeling again…

And who can blame them, with nearly all of the data starting to turn the wrong way?

And there’s the specter of facing a renewed downturn at a point in the cycle where both the Federal Reserve and your Uncle Sam have already used up all of their ammo.

Because let’s face it: With the Fed Funds Rate already at zero and bailout fatigue everywhere you look, there’s not much to fall back on this time if it begins to slam into the fan again.

So that click… click… click.. you hear is the sound of an empty gun.

Out of bullets, I’m not really sure how Ben Bernanke sleeps at night…

I guess it’s that Keynesian religion.

To print or not to print: that is the question:

Whether tis nobler in the mind to suffer the slings and arrows of deflation, or to inflate our way out of this sea of troubles…

To print: perchance to dream: ay, there’s the rub…

With apologies to the Bard himself, that’s the essence of Bernanke’s dilemma as he tries in vain to somehow split the baby — which is why the markets are torn between two polar opposites: inflation on the one side, deflation on the other.

Either way, it has got to be one or the other. And neither choice is really all that agreeable.

Meanwhile, after being removed from life support, housing is beginning to flat-line again which opens up the prospect of a double dip.

On top of that, the employment picture is a weak one… China is bubbly… the Eurozone is on the brink… the States are basically broke… oil is pouring into the Gulf… and oh, by the way, there’s the usual early summer saber rattling in the Persian Gulf.

Other than that, everything’s great.

But it’s not all bad news if you grab the right seat.

There are opportunities in every market — bumpy ride or not. No matter how volatile, there’s still money to be made.

Besides, something tells me Ole Ben has few more tricks up his sleeve before he drives the bus over the cliff for good.

QE 2 anyone?

Or better yet, maybe he really will start dropping money from helicopters…

Below are a few more ideas below from the pages of this week’s top-read articles in Wealth Daily and our sister publications, Energy & Capital and Green Chip Stocks.

Enjoy the weekend,

Steve Christ
Editor, Wealth Daily

Imperial Sugar (NASDAQ:IPSU): One Sweet Sugar Stock
Wealth Daily Editor Steve Christ takes a look at the dangers of high fructose corn syrup and identifies one of the winners as real sugar makes a comeback.

The Transocean (NYSE:RIG) Selloff: Overreaction in RIG Shares?
Editor Ian Cooper explores Transocean’s troubles and explains why it may be a buy as news gets out.

Nuclear Power Play: On the Trail of Another Game-Changer 
Editor Nick Hodge discusses nuclear power bull market and the encounter that lead him to a company that can make you a small fortune.

Gold Bull Market May Push Prices to $1,500 an Ounce: Why I’m Double-Downing on Gold Now
Wealth Daily Editor Greg McCoach explains why he thinks gold prices could hit $1,500 an ounce within the next few weeks.

Is Natural Gas an Energy Cure-all?: The Pickens & Pelosi Profit Play
Green Chip‘s Nick Hodge discusses energy options in the wake of the BP disaster. His conclusion: Buy natural gas.

The Metals Bull Market: A Geological Find Hot Wired for Gains
Commodities guru Luke Burgess reveals the truth behind the legend of Lake Superior’s $550 billion secret.

Tesla Motors Set to Go Public: A Heads-up on a Hot IPO
Green Chip Editor Jeff Siegel gives investors the low down on what may be in store for a new electric car IPO.

The Shadow Inventory: Simple Ways to Profit from the Foreclosure Crisis
Wealth Daily reports: 20 million properties will be foreclosed on 2012. We detail the three stocks that could make you filthy rich as it all goes down.

Is Natural Gas the Future of Energy?: The Future of Transport is Here (and it’s Not Electric)
Energy & Capital Editor Nick Hodge takes a look at the zero-sum oil game in the U.S. and reports that natural gas is about to be ushered in as the new fuel of choice.