Oslo, Norway

Is it too premature to worry about inflation?

Since March, investors have shifted away from deflation fears to future inflation expectations. Commodities, stocks and other risky assets that are typically fueled by rising inflation have skyrocketed since the March 9 intermittent low.

Oslo, Norway

As I flew into Oslo Friday afternoon from London I had a feeling July unemployment figures would be well received by the markets. And indeed the figure inspired a big rally in New York though stocks finished well below their highs for the day. Oil prices also declined on the session.

Oslo, Norway

As I flew into Oslo Friday afternoon from London I had a feeling July unemployment figures would be well received by the markets. And indeed the figure inspired a big rally in New York though stocks finished well below their highs for the day. Oil prices also declined on the session.

London, England

Since the beginning of the year I’ve largely avoided common stocks and instead have favored high quality bonds and convertible bonds. Though bonds have lagged behind stocks since March 9, they’ve also produced the same returns or better in 2009 with far less risk and volatility.

Basically, I still don’t like earnings prospects and prefer to get paid to sit tight. Bonds provide that option.

En route to London, England

The British rock group Genesis inspired our lead title about the British pound. Mike Rutherford and Phil Collins didn’t include the word “short” so please excuse my blunt creativity.

Montreal, Canada.

If you’re like me and reluctant to join the stock market frenzy with open arms then consider buying reverse index funds that bet against Treasury bonds. This strategy offers a high value alternative to joining a 50%-plus stock market rally since March as long-term interest rates rise on most days when the stock market climbs.

Montreal, Canada

While global markets remain drunk with gains over the last five months consumer prices across the world continue to turn negative. And nowhere is this dangerous trend more pronounced than in Europe, especially Eastern and Central Europe where GDP in many countries has shrunk by 10% or more.

Montreal, Canada

Montreal, Canada.

The United States, like several other European governments, is struggling to sell a truckload of Treasury’s this year. Investors are advised this slow bleed can easily magnify into a full-blown crisis over the next few years if the global economy fails to recover.

Montreal, Canada.

For the first six months of 2009 the Credit Suisse-Tremont Hedge Fund Index gained 7.18% after logging one of its best quarters in almost ten years from April to June. That’s a big reversal from last year’s debacle when hedge funds tanked more than 19% -- their worst year in history.