Articles to Read…

Liz Rappaport from asks whether or not the Fed has lost its credibility understating the true inflation.

A new strategy in exiting silver? Roland Watson explains a new trading method in timing silver. (Silver Investors need not bother).

BusinessWeek cites that NovaStar – a Sub-Prime lender – expects to recognize little, if any, taxable income for the next five years. The list rolls on.

A few Market thoughts on current Margins of Safety…

  • The VIX, commonly known as the “fear index,” is hovering around 10, a low point, suggesting a lot of carefree folks out there these days. This level is often a turning point, a calm before the storm, so to speak.
  • The Treasury yield curve inverted months ago, suggesting a recession was on the way. It hasn’t happened.
  • The Dow industrials, transports and utilities all closed at new highs on the same day last week — something that became a routine occurrence in just two years, 1929 and 1986, both preludes to big market falloffs.
  • The current rally is now the third longest since 1900 without a 10% correction.
  • According to the NYSE, margin totaled $285.61 billion in January, up from $275.38 billion in December and passing the previous peak of $278.53 billion. The highest levels ever.
Some Chinese thoughts…

If you are one in a million – In China there are 1,300 others just like you.

Did you know that in Chinese the same words means both crisis and opportunity?

Quote of the Day

My grandfather always said, “Don’t watch your money; watch your health.” So one day while I was watching my health, someone stole my money. It was my grandfather.
– Jackie Mason


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