Archive for February, 2011


Where is gold going in 2011?

Gold and oil are very different in their investment characteristics since gold is purchased principally to hold as an inflation hedge and oil is purchased primarily for refinement into gasoline and other petroleum products. Typically, this makes oil much more subject to international political factors and global economic forces. However, Gold has taken a more […]

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Monetary Policy for 2011

One of the primary monetary news items to note as 2010 draws to a close is the announcement of more ‘quantitative easing’ by the Federal Reserve1. In plain terms, this means that the Fed will purchase treasuries on the open market. This will have the effect of artificially increasing demand for treasuries, which will push […]

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Atlanta, Georgia, Could Return More Than 25% ROI This Year

Atlanta represents an investment gem in the southeastern United States. It has spectacular economics from a development and employment perspective that make it a tremendous opportunity for income property investors. With a wide diversity of employers, many universities, and a vibrant cultural presence in the city, Atlanta has attracted a tremendous amount of in-migration from […]

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S&P 500 vs. Gold Price

AmericanMonetaryAssociation.orgOne of the important ratios to keep in mind when examining the equity markets is the gold price relative to the major stock market indexes. This provides a valuable insight into the extent to which market values reflect a real shift of sentiment toward equity value, versus the extent to which the value has lost value, driving increases in nominal valuations to simply retain purchasing power. Over the last 35 years, the relative price of Gold1 and the S&P 5002 has oscillated up and down very significantly. In the aftermath of 2008 and the financial crisis, this ratio has regressed toward a value of 1.0, which indicates equal valuation for the S&P 500 index and an ounce of gold. In the latter half of 2010, the S&P 500 vs. Gold ratio dropped below 1.0 as Gold prices were pushed up by speculators seeking to hedge against expected future inflation. Our analysis indicates that this trend is likely to continue through 2011 as monetary expansion inflates both asset classes.

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Predicting Interest Rates for 2011

One of the principal economic leading indicators for 2011 will be the movement of 10-year treasury rates. The reason for this is because 30-year fixed rate mortgages are indexed against the 10-year treasury, and interest rate movements have a dramatic impact on the affordability of homes. One of the significant problems faced by the government […]

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13.1% Return on Denver Investments in 2011

The Denver area has been a historically stable real estate market for both owners and investors. Market values experienced a downward correction following the financial crisis of 2008, showed signs of stabilization as 2009 transpired, but that stabilization was short-lived, as the market experienced volatility moving out of 2009 and into 2010. Currently, approximately 35% […]

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Money Mischief

now, most people have heard about the second round of “Quantitative Easing” being conducted by the Federal Reserve. In short, this means that the Fed will be purchasing treasury bills with freshly printed money to inject more cash into the monetary system. To date, most of this additional liquidity has been limited to banks who […]

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AMA 26 – Howard J. Ruff: Prosper During The Coming Bad Years

How will you stay on top of your finances with the coming economic uncertainty? Your best bet is to continue listening to The American Monetary Association Show as your host, Jason Hartman, discusses cutting edge financial topics with experts in the field. For example, this episode’s very special controversial guest is Mr. Howard J. Ruff, […]

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Property Investing Strengthens in Phoenix this Year

Market values in Phoenix are currently at approximately the same level as in the year 2000. The market area experienced a tremendous run-up during the real estate bubble and a spectacular during the financial crisis. During 2010, the regression back to fundamentals continued in Phoenix. For people who bought at the wrong time, this value […]

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Why the Dollar is Inflating

The general price level in 2010 relative to 2009 shows average price levels that are nearly flat. The reason for this trend is significant commodity price increases in 2007 and 2008 that collapsed after the global financial crisis. Much of the reason for the price volatility in commodities is leveraged buying and selling through hedge […]

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A Dollar is Not a Dollar

One of the most important concepts for investors to understand is that a dollar today is not the same as a dollar yesterday, and is not the same as a dollar tomorrow. Over time, inflation erodes the purchasing power of currency. This is critically important, because most people focus on the nominal change in the […]

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2011 Real Estate Trend Predictions

AmericanMonetaryAssociation.orgOne of the most impactful news items heading into 2011 is the announcement by Bank of America that foreclosure activity is being suspended1, and the decision by government agencies to increase scrutiny on the foreclosure process. In the wake of this announcement, nobody completely knows how long this increased scrutiny will last, how intense it will be, and what impact it will have on market activity.

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Income Property Investors Looking at Orlando, FL Again

The city of Orlando experienced a tremendous increase in market prices from the year 2000 through 2006, and a downward correction in prices since the beginning of 2007. As 2010 concludes and 2011 unfolds, we expect to see prices stabilize and regress toward a long-term linear growth trajectory. Currently, approximately 68% of listings are from […]

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U.S. Dollar Not Leaving the World Stage Yet

Frequent readers of our posts might reach the conclusion that the dollar is on the cusp of expiration, and that they should be trading in greenbacks for yuan, yen, pound, or even Aussie dollars. Rumors of the United States currency’s death might be somewhat exaggerated, though our unassailable position at the top of the world’s […]

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