Economist Online

Interview of Marc Faber, who thinks QE3 is a matter of time.

Jim Rogers gives an update on commodity investing. Watch his comment on Obama’s policy proposal.

Muni market is in turmoil. In the following interview, Meredith Whitney gives her update on the muni market and why she thinks municipalities (not states) could default.

There should be some opportunities coming up. Investors should keep a close watch on the muni market in coming weeks.

To find out why cities got into the trouble in the first place, read this piece on today’s Journal.

Year to date, silver price has increased by over 50%, and gold by more than 20%.   The out-performance of silver relative to gold is a good indicator that gold bubble is entering a new stage, where retail investors poured in and started to grab the alternative to gold , i.e., silver, at a much cheaper price.  In essence, silver has become ‘poor man’s gold’.   Gold ETF (GLD) is traded around $130, while silver ETF (SLV) is traded around $25.

(click to enlarge)

The out-performance of silver started to kick in right around the Fed’s announcement in late August of their intention to ease monetary policy further.  To show this, the following chart looks at the relative price between silver future contract and gold future contract, YTD.

Everyone should watch this video:

One year after his first interview with CNBC, Julian Robertson, legend investor and Chairman of hedge fund Tiger Management, came back with his view on the Fed’s QE and fighting on obesity.

Jim Rogers – Bernanke simply does not know what he’s doing; Gold reaching $2000 in 5-10 years is given.

From Bob Doll, chief equity strategist at BlakRock:

1. US equities experience high single-digit percentage total returns after the worst decade since the 1930s.

2. Recessions occur more frequently during this decade than only once a decade as occurred in the last 20 years.

3. Healthcare, information technology and energy alternatives are leading growth areas for the United States.

4. The US dollar continues to become less dominant as the decade progresses.

5. Interest rates move irregularly higher in the developed world.

6. Country self-interest leads to more trade and political conflicts.

7. An aging and declining population gives Europe some of Japan’s problems.

8. World growth is led by emerging market consumers.

9. Emerging markets weighting in global indices rises significantly.

10. China’s economic and political ascent continues.

Read more  about his predictions here.

From WSJ (April 5, 2010):

The 10-year Treasury yield, the benchmark for U.S. consumer and corporate borrowing, rose to 4% for the first time since June.

The move extends a steady increase by Treasury yields, which move inversely to prices, lifted by a combination of stronger economic data and the barrage of debt issued by the government to meet its financing needs. Recent Treasury auctions have met with much weaker demand and Monday’s move comes ahead of more auctions this week, with the Treasury Department set to sell $82 billion of Treasury notes and bonds.

The 10-year yield is a key benchmark for mortgage rates and other consumer and corporate lending.

My best take on the surge of 10-year rate is: this is due to more of investors’ early worry about US fiscal situation and rising long-term inflation expectation; rather than expectation of strong economic recovery.

Remember, the Fed can’t directly control long-term interest rate.  IF the 10-y rate continues to rise as the result of rising inflation expectation, the Fed will be forced to raise short-term interest rate.   This will put a brake on the tepid economic recovery, potentially causing a double-dip scenario, like the recession in 1981.

Now watch this great debate on the issue, between Jim Grant and Dave Rosenberg, on the topic whether “Treasury is for losers”…

Jim Grant holds the view that high inflation is ahead of us, and Rosenberg thinks deflation is a bigger risk, so treasury/bond securities are not bad bet.

(click to play, about 50 mins)