Commodity Trading & Trend Following

Like the Swine Flu the housing crisis knows no boundaries. When analyzing the data it seems that the EU is in for possibly a much harder time than the US. One can look at various items. Firstly, the EU central bankers were and are slow to have reduced interest rates. Thus they are behind the [...]

In these uncertain times all are asking where to put their money? I am not supporting one should jump into forex currency trading. I am referring to a safe haven in which someone can park their net worth. In the past the safe havens have been US Dollars, Japanese Yen and Swiss Francs. The problem today is that these countries economies are struggling. The Japanese economy is a disaster the International Monetary Fund forecast the country’s output shrinking by 5.8% this year. The Swiss have their issues for example UBS as far as tax issues,all the toxic assets the major banks are holding as well as untold amounts of loans in Eastern Europe based in Swiss Francs which might not get paid back.

One guess who has been buying gold bullion since 2003? This has not been for gold charms or gold necklaces.China has purchased approximately 454 “TONS”. Could this be one of the reasons gold prices have soared since then? China’s track record of investments has been poor of lately as one can look how they purchased BlackStone.

The list of bank failures grew this weekend to 29 Bank failures for the year of 2009. What is alarming is that we are only 4 months into the year and we have surpassed all of 2008 bank failures ( 25 Bank failures). How does this bode for the rest of the year? How does this connect to the stress tests on the largest 19 banks? How solvent or insolvent are these leading banks?

We all know the unemployment rate is growing. You pick the state, there is ohio unemployment,california unemployment,florida unemployment and michigan unemployment. The unemployment rate is growing month by month. Here is a short youtube video how to apply for unemployment the Martin Lawrence way.

Unemployment rates worldwide are sky rocketing. Spain unemployment rate has reached greater than 17%. This equals approximately 4 million people are unemployed. This is the first time the number of unemployed have exceeded 4 million according to the Spanish economist Carlos Maravail

Many have thought trading commodities was risky and not prudent.Even the blue chip stocks in this stock market crash have not been saved. The Blue Chip stocks are considered by many to be risky.Just look at Microsoft which reported a 32% decline in profitability. This is Microsoft’s first quarterly revenue decline in all of its 23 years. Wow…! Not pouring more oil on the fire, bank after bank might need another $1 trillion of capital. Where is that money suppose to come from? So where do you put your money? What do you do to invest?

Do you remember when everyone hated the US dollar. Not saying the US dollar is immune to devaluations, the Euro dollar might be risk of falling. Ok all you online currency trading professionals should you go out and short the Euro dollar? Well look at these facts

The housing crisis has returned another victim today. David Kellermann, the CFO of Freddie Mac was found dead today of an apparent suicide. He was 41 years old. It leaves one wondering was his suicide connected to the housing crisis? Did he know something that will be the next shoe to drop in the housing crisis? Or was it other issues unrelated to the housing crisis. Time will tell but with foreclosures increasing in speed, I would not be surprised if his death was somehow connected to the housing crisis.. What do you think?

The million dollar question is have we avoided a 1929 stock market crash scenario or was this just a bear market rally. Nouriel Roubini who called the stock market crash several years ago. Now he is believes we are just a Bear Market Rally.