Mind Over Market

The big risk ahead over the next five years is deflation, not inflation, and it will benefit investments in innovation strategies, according to Cathie Wood, founder and chief executive officer of Ark Invest. Robert England Innovator companies, who share prices have tumbled 30-35% from their heights earlier this year, are likely to return 25-30% in each of the next five years from their current levels, Wood is predicting. “In terms of the recent behavior of value stocks, especially those we believe are in harm’s way, compared to the severe draw down of innovation stocks, I like the set up very much,” Wood said.   While the current situation is reminiscent of the runup in prices from 2006 to 2008, the bond market is signaling that may not be the case, Wood said.    Instead of 10-year Treasury yields rising sharply higher as it did during the 2008 financial crisis, the bond market “has settled down” following a sharply higher move in yields earlier in the year on inflation f...

Q and A with James Rickards Part 1 of 3 Part 2  here Part 3  here May 3, 2014 By Robert Stowe England James G. Rickards is a lawyer, economist and investment banker with 35 years of experience on Wall Street. His new book  The Death of Money , published by the Penguin Group, is a New York Times bestseller. His first book,  Currency Wars , published in 2011, and was also a Times bestseller. In his new book he explores further the consequences of the weak dollar policy pursued by the Federal Reserve Bank, coupled with the huge run up in deficits and debt by the United States, and the failure of Congress and the Obama Administration to devise policies that would spur faster economic growth. Rickards is a portfolio manager at West Shore Group, LLC, Haddonfield, N.J., an investment fund set up in 2013, and an adviser on international economics and financial threats to the Department of Defense and the U.S. intelligence community. He g...

In an interview on CNBC's Squawk Box December 17, 2012: David Tepper, president & founder, Appaloosa Management, says what the Fed has done helped the markets. He also says he believes the Fed sees a 6 percent unemployment rate is the trigger for inflation. He also says Obama's legacy will be defined by entitlement reform.

Marc Faber, publisher of the Gloom, Boom & Doom report, talks on September 14, 2012, about Federal Reserve policy and his investment strategy. Faber, speaking with Betty Liu on Bloomberg Television's "In the Loop," also discusses gold prices and the property market. (Source: Bloomberg) Selected Quotes: "Even if Romeny wins the election, the next Fed chairman will be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down. And I don't like bonds. I don't particularly like equities, but I think equities are a better space to be in than bonds.” ** "I own corporate bonds. I bought some bonds from Kazakhstan because Kazakhstan economically is a much sounder country than the United States or any European country." ** "The fallacy in the United States is to think that this will go to the man on the street. It wo...

Federal Reserve Chairman Ben Bernanke today told Congress that the central bank has no plans to monetize the sharply rising deficits of the United States and defended the Fed's program to purchase Treasuries. He told Congress of the need for Washington to control spending and set appropriate tax levels, in consultation with the American people, to achieve 'fiscal sustainability' in the long term. By that he meant a situation where the ratio of government debt service to the size of the economy is stable or declining. By Robert Stowe England June 3, 2009 In his appearance before Congress today Federal Reserve Board Chairman Ben Bernanke responded directly to mounting worries about sharply rising budget deficits in the United States, amid growing concern among major international investors in U.S. Treasuries, from China to Saudi Arabia, that the Fed might monetize those deficits. If the Fed were to monetize the debt issued to cover most of the rising deficits, it could lead t...