Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Narenda Modi

Market Wisdom

Some Great Books to Help Investors Understand the Modern Economy

If you want to understand the origins of the retail apocalypse; and the rise of Amazon (NASDAQ: AMZN), read this book. Does a good job of explaining who Jeff Bezos is and exposing his thought processes.

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Market Insanity

Nine Off the Wall Economic and Financial Predictions for 2017

The price of bitcoin might exceed the price of an ounce of gold for the first time. This prediction is not as crazy as you might think. On December 24, 2016, an ounce of gold was trading at $1,136.90 and a bitcoin was trading for $891.75. That means the price difference between Bitcoin and gold is just $352.14. Now consider the fact that Bitcoin doubled in value over the course of 2016, it was trading at $442.50 on December 20, 2015 and $891.75 on Christmas Eve 2016. Gold prices also increased from $1083.50 on December 21, 2016, to $1,137.30 on December 24, 2016. If gold and bitcoin repeat their performance next year, bitcoin will be more valuable than gold.

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The Death Spiral

Is Barrick Gold Doomed?

A major reason why Modi killed his nation’s two largest banknotes was to stop the flow of cash out of the economy and into gold. That might be sound economic policy; but is potential disaster for Barrick and his competitors because India is the world’s largest market for gold.

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Market Insanity

Should Central Banks Adopt Digital Currencies?

The PBOC is in a rush to develop a digital currency because of China’s experience with bitcoin. China is the world’s largest market for bitcoin because the cryptocurrency allows the country’s residents to easily bypass its’ rigid currency controls.

The central bankers apparently hope that issuing their own cryptocurrency will give them some control over the situation. Some control is better than no control which is what they have right now.

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