Oslo, Norway

This is my second visit to Norway since May. Oslo is a great city and a superb walking town. Just 100 meters from my hotel is the Norwegian Parliament building and from there a great “Handler Ømradet” or shopping area littered with all sorts of interesting things to see and buy.

As risk returns to global markets since March, the Canadian dollar along with a host of other foreign currencies, including commodity currencies, has surged versus the American dollar. In May, the Canadian dollar logged its strongest month versus the U.S. dollar in more than a decade gaining 8.5%.

Over the same period, the loonie has also proved to be highly correlated to crude oil; commodities posted their best month in May since July 1974 with oil prices surging 30%.

Montreal, Canada.

According to Bianco Research, the aggregate cost of the U.S. bail-out program is now estimated at $4.2 trillion dollars – larger than the inflation-adjusted cost of WW II.

Grant’s Interest Rate Observer pegs the current stimulus at roughly 30% of GDP, or gross domestic product. To put this monster into perspective, the total sum of all fiscal and monetary measures during the 12 previous U.S. economic downturns since 1929 comes to a mere 39% of GDP.

Montreal, Canada.

While global stock markets and speculative debt continue to run with the wind since March, the specter of sharply rising long-term interest rates spells big trouble for a still fractured mortgage market.

Montreal, Canada.

A new and unique closed-end gold fund hit the Canadian market last Friday with more than $366 million (C$400 million) raised from institutions and investors. Although introduced as a closed-end fund, if in six months the fund trades below its NAV, it will automatically convert into an ETF. The much anticipated offering also offers more unique twists compared to other globally-traded gold fund for two important reasons.

Amazing how the tables can turn so quickly in a span of just six months…

In 2008, Treasury bonds were the only fixed income category to post a profit amid total market chaos as investors shunned riskier debt. In 2009, Treasury bonds are the only fixed income sector in the loss column while riskier bonds have skyrocketed in value.

In 2009, benchmark ten-year T-bonds are down 2.6%, including interest income while 30-year T-bonds have plunged 15% -- their worst calendar year of performance since 1994.

If you’re looking for a reason to sell stocks then here’s a powerful catalyst…

I first documented the bearish development among corporate insiders in late April as
InsiderScore.com reported heavy sales. The trend in insider selling has accelerated markedly since then as technology and healthcare CEOs and directors in the United States dump company shares amid an ongoing bear market rally.

The new Bill of Rights legislation signed by President Obama last Friday will probably do more harm than good to an already battle-scarred consumer. The outcome might even accelerate the trend in tight credit as subprime borrowers are denied credit card access and deepen the contraction in spending since late 2008.