Author Archives: NFTRH

Semi Equipment Book-to-Bill Ratio Moderating

By -

Excerpted from the November 23 edition of Notes From the Rabbit Hole, NFTRH 318:

Semiconductor Equipment Book-to-Bill Ratio Moderating

Since we were the only ones (so far as I could see) even talking about the Semiconductor equipment industry ramp up (and positive implications on US manufacturing) back in early 2013 I think we should continue to tend the sector and finish what we started.

Last month the SOX took a massive dive down to our noted long-term support area in a giant swoosh of hype (coming from the financial media by way of one company’s outlook) and emotion by way of stampeding herds trying to get out at all costs. It was just a setup as the SOX resides at new recovery highs this weekend. (more…)

Stocks Adjusted for ‘Inflation’ and for Gold

By -

[edit] Post veers at little at the end, may require a couple reads…

[edit2] Attn: Subscribers, material dovetails with market analysis in #318

[edit3] Charts are quite large; click for full size

MarketWatch announces that the US stock market is back to the ‘real’ highs of the last secular bull market, prior to the dot.com/tech bubble blow out. Here is the Dow adjusted for CPI, finally paying back investors after a 14 year debit in ‘real’ terms.

indu.cpi (more…)

Draghi Speaks the Truth

By -

Draghi Speaks the Truth; ECB Will ‘Do What it Must’

Words are important. This is not just a headline, it is a reality…

Draghi says ECB will ‘do what it must’ on asset buying to lift inflation

Not ‘do what it thinks would be the best course for the European economy’, not ‘choose the path of least resistance in guiding the financial system to recovery’… the ECB will DO WHAT IT MUST.

As I have written til I’m blue in the face for the last 10 years, we are in the age of ‘Inflation onDemand‘©, 24/7 and 365. “…do what it must”… let that sink in for a moment.

Japan is trying to kill the Yen, China is dropping interest rates and the world over we have a rolling inflationary operation that is little more than a game of Whack-a-Mole. BoJ popped up a couple weeks ago and now this one… (more…)

Contrary Indicator

By -

I hesitated to post this because it puts an actual person up for ridicule, as opposed to the usual stuff I write about the “gold generals” or ‘stock market touts and trend followers’, etc. A reader sent along an email containing this link (and its very bearish current view of gold) and the video below.

Daniela (Aug. 24, 2011): “…this [Fed’s Op/Twist.] would create a bullish gold scenario?”

Puru: “Absolutely…”

also… “on the cusp of a massive uptrend in gold…” (more…)

Goldzilla

By -

goldzilla“History shows again and again how nature points out the folly of man” –Blue Oyster Cult, Godzilla

I would have written off the gold sector long ago in its ongoing bear market had I thought for one moment that gold’s utility as insurance against the acts of monetary madmen/women in high places had been compromised in any way. On the contrary, the monetary metal is simply having its price marked down in a bear market while its value, especially given its current price and all that has gone on in the financial system over the last 3 years remains just fine.

Indeed gold, an element dug out of the ground for centuries, once as money and now as a marker to sound money systems will one day be shown to be a calm oasis from the fallout to global monetary shenanigans currently ongoing. At least it would be an oasis to those who have valued it as such. It is going to feel like a giant dinosaur (minus the kitsch value) ripping through a city built on paper to the multitudes who have taken the bait on the current too big to fail global inflationary operations. They will fail. Timing is the only question. (more…)

Gold Sector Review

By -

Below is a summary of some of the aspects we follow in NFTRH to gauge a future investment stance on the gold sector. It is much more complex than simply hearing dogma that seems to make sense and then holding on for dear life…

Inflation

The hype is dying. 10 years of inflation hysterics have gone down the drain even as global policy makers pull out inflationary bazookas and use them at the slightest hint of economic trouble. The BoJ’s recent action was just the latest and most striking in its timing. Global markets were bouncing within correction mode and the Yen had just pinged a key resistance level. The BoJ then blew the Yen up with policy designed to at once reward risk takers and asset holders and mercilessly punish the Japanese people, renowned for the ethic of saving. (more…)

Negative Feedback 2; Points Proven

By -

A couple weeks ago I wrote a post about some negative feedback (comes with the territory, if I am doing my job well enough) because I wrote about the very real economic performance that has so far come out of what I consider unsustainable and doomed to fail policy (and would be bullish for the gold sector I might add).

So I get to have some people call me a perma bear on one side and certain dogma defenders on the opposite side, both coming down on the writer who, right or wrong, is trying to clear out the b/s and just write the truth.

Now with the Gold Bug Psychology article I unsurprisingly I got the incoming from that camp as well. Even though I am twice the gold bug some of the dogma defenders are because I am not threatened by my position and am willing to state the truth as I see it. Nobody that I know of has put in the effort I have over the last decade in trying to describe gold as a value instrument and an insurance policy… and NOT a PLAY or a GAME. (more…)