“Thanks for all the info in Money Morning, but how can I make money from it?”

That was the rough gist of the question we were asked at the Doomer’s Ball on Tuesday night. It’s a good point. You read a lot in here about falling interest rates, falling currencies, falling stock markets, rising stock markets, failing car companies, failing child care centres, failing investment banks, and so on.

But where are the opportunities to make a quid out of it?

The interesting one at the moment are bond prices. On Tuesday an auction of US government 30 day treasuries sold for par value. In other words, the US government is borrowing $100 today and repaying $100 in thirty days time.

[click to continue...]

Well, last night was the third Doomer’s Ball. Based on our count, there were over 100 people that attended. All of them were subscribers to Money Morning, Daily Reckoning, Australian Small Cap Investigator and Diggers & Drillers.

So what did we get out of last night? Plenty of feedback for a start. So we’ll filter some of that feedback into how we present Money Morning. The main request was for us to go into a bit more depth on Australian news stories.

We think we can manage that.

[click to continue...]

Let’s have a look today at a long-term indicator, the DOW/GOLD ratio. Typically its aim is to assess and forecast the bullion perspectives.

This indicator is built as the ratio between the Dow Jones Index and Gold prices. In other words, it tells you how many ounces of Gold you need to buy the most famous US equity benchmark.

Two scenarios can generate the ratio’s decline:

• The Dow Jones falls faster than gold prices
• Gold prices rise faster than the Index

This is of course the opposite way when the ratio jumps.

[click to continue...]

Far be it for your humble editor to criticize a professor… but, has the world gone mad?

It may however provide an explanation for some of the hair-brained ideas we’ve seen floating around recently. We specifically mean the hair-brained ‘cures’ for the credit crunch.

In today’s Australian Financial Review (AFR), associate professor at the Melbourne Business School Mark Crosby writes “it seems to me the central bank might as well bite the bullet and cut rates to zero.”

[click to continue...]