Stock Capitalist

By Martin Hutchinson Contributing Editor For the last couple of years, every time problems have emerged in the stock market , investors have rushed into US Treasury Bonds, assuming they’re a catchall “safe haven” against stock – market storms. … The Fed has cut short-term interest rates from 5.25% to 3% in the last 6 months – that’s why commodity prices have suddenly put on a new spurt, with oil soaring from less than $70 a barrel to around $100. That raises the likelihood …

Roughly $6 trillion was lost on global stock markets in the month of January, triggered by the biggest financial crisis since the Great Depression plus a US housing slide that could topple the giant US economy into recession. … The Federal Reserve has been the most hyper-active G-10 central bank in pumping liquidity into the global markets, slashing the fed funds rate to a negative 1%, in inflation adjusted terms. The Fed “will be carefully evaluating incoming …

It was no coincidence that the US stock market suffered hefty declines while the yen currency rose from 87.5 to 94 in the past two months. Speculative money, heck basic investment money, was drained from the system. … economic advisors, whose interference has irreversibly altered and damaged the world financial system. Analysis features Gold , Crude Oil , USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy. …

I wonder if any member of the Federal Reserve almost choked on his barbecued brisket when world financial markets threatened to go into meltdown while Wall Street was closed over the Martin Luther King Holiday. … Emergency measures in the form of an immediate, pre-emptive interest rate cut of 0.75% (the largest in almost twenty-five years) were followed by a further 0.5% cut a week later (an unprecedented 1.25% cut in one week) which was enough to act as a circuit …

All the market has to do is call, and Edward Scissorhands will cause rates to fall. So what does gold think about our new Fed Chariman, Mr. Bernanke? Well, they say a picture is often worth a thousands words, and this one is no exception. … I believe that gold and gold stocks will build a solid base over the next few weeks, and then will explode to new highs as the Bush stimulus package becomes reality, and as Edward Scissorhands is called on once again to cut rates and …