In this update we’ve got snippets about the U.S. stock markets, the Federal Reserve, Asian stock markets, Halliburton and Mexican oil fields, and Brazilian energy reserves.
Click the below link if you’d like to read more.
There Will be Blood
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Ah, Brazil. The oil. The natural gas. Carnivale.
It’s too bad neocons decided to wage their war for oil in Iraq, eh? Imagine the spoils in places like Brazil, in Alaska, off the coast of California, in Norway, off the coasts of Florida, etc.
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There Will be Blood — Part II
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Ah, yes, Mexico. The beaches. The ancient ruins. The oil.
What’s more valuable to the long-term security and prosperity of the United States: 1. Duncan Hunter’s Olympic-sized fence? 2. Close trading and business ties with an oil-rich neighbor?
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Asian Stock Markets
Stock markets throughout the Pacific Rim dropped sharply on Monday and Tuesday.
That’s a good thing.
We need to shake out these overblown stock markets — including our own — to build a nice base for the next bull market. Read “Wall Street on Sale,” by Timothy Vick. Be guided accordingly.
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I’ve already washed my hands of the Federal Reserve. I said so in print. So, I won’t bother opining in detail on their latest (panic) move.
One tertiary point is worth mentioning, however:
We won’t have a rational and competent Fed until each and every voting member is too young to remember the dark period of the late-1970’s and early-1980’s. The basic problem is that Fed officials simply can’t help themselves in raising rates too far, too fast during up periods, to try to stamp out even a hint of inflation, then responding to the inevitable results of their handiwork by cutting rates and injecting liquidity into the system like drunken sailors in port.
Dogs of the Dow
The U.S. equities markets were quite volatile on Tuesday — at first plunging and then rising on very heavy volume. Liberal Democrats in the financial media literally began screaming and foaming at the mouth.
There are some no-brainer stocks out there to buy. You don’t even have to look that hard. Severe discounts to tangible book value. Severe discounts to book value even assuming book value further gets written off in large doses! Low P/E multiples. High dividend yields. High dividend yields even assuming dividend cuts!
Dozens of established financial and real estate-related companies fit those bills.
Incidentally, the more the Lemming blocs continue to sell off stocks the better it’ll be for long-term purchasers who have the will and the means to average down. It’s been that way for decades. It’ll be that way decades from now. The shrill cries of twitchy traders and media-bots notwithstanding. Read “The Theory of Investment Value,” by John Williams. Be guided accordingly.