Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the weakening U.S Dollar. (See the Forex and Commodities sections.)
Precious Metals:
Jeff Clark, more optimistic than ever: 2018 Gold Price Forecast and Predictions
Forex (Weakening U.S Dollar):
The decline in the US Dollar against the Euro (USD/EUR) is continuing apace. This is best visualized in the 2 year chart at XE. Clearly, the Trump Administration and the Federal Reserve banking cartel are working in concert–at least for now. They want a robust economy, and part of that is driven by strong exports. (A relatively weak Dollar is one tool to strengthen U.S. exports.) Janet Yellen’s departure was announced in November, but it won’t become effective until after some new Fed appointments take effect. It remains to be seen in the reshuffled Fed Board will change policies, after Yellen’s quiet exit, Stage Right.
Commodities (Weakening U.S Dollar):
A weak U.S. Dollar tends to push commodities higher. Therefore, barring a credit collapse, I think that 2018 will be a strong year for many commodities.
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Over at Seeking Alpha: Crude oil to pull back amid ‘tremendous speculative bubble,’ Kloza predicts
Economy and Finance:
Next up, at Bloomberg: One Indicator Says Bond Rout Going Too Fast for Stocks to Escape
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Amazon Surpasses Apple As Most Valuable Business On Earth
Tangibles Investing:
This 2013 article is brief, but fascinating: Five Collectibles to Stash for Big Cash Later
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!
Amazon: What do they physically own? What is their value if they were to go bankrupt tomorrow? Is their stratospheric value based on solid footing or is it all pie in the sky?
I like Amazon but rarely buy from them. For those who haven’t noticed Walmart is now providing a very similar service to what Amazon provides. With the added advantage that I don’t pay shipping and I simply pick it up at the local Walmart store. Additionally I have the advantage of Walmart’s very generous return policy. Also I don’t pay for it until I pick it up and can decide at that moment if it is what I wanted or not.
Now Walmart may never really challenge Amazon in this field but they seem poised to do exactly that. If they do and are successful what would be the value of Amazon then?
Amazon owns far more than you or others realize. Their portfolio includes brick and morter Whole Foods, they own a massive distribution system with physical warehouses, they have their own transmodal fleet including air and trucking. They are now producing Amazon branded products, in addition to buying the WF product lines. They own one of the largest, if not largest, cloud service companies. They own production studios for organic movie and television projects. Blue Orgins, owned by Bezos, absolutely will tie to Amazon.
In short, they are like the iceberg in the ocean. Most only see a small part of what they are.
Amazon brings my packages to my door and I can buy just about anything. I use Amazon daily and avoid Walmart whenever I can.
In ten years Walmart will be another Sears! AT