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Chart of the Day

Is Wall Street cheap, expensive or fair valued?

 Here is a chart which may help you to give an anwer.

April 10, 2009

By Vincenzo Sciarretta

A long-term chart suggests Wall Street is fair-valued, but not very cheap or excessively expensive.

A few days ago, I ate dinner in Paris with Paul Horne, an independent market economist, after spending a life at Smith Barney.

While dining out at Aux Anysetiers du Roy, on the Ile Saint Louis, he showed me the chart aside, depicting the S&P stock price since 1900...Read More



European Auto Makers: the Easy Money Has Been Made.

After the sharp rally of March, the investment case is less obvious.

April 7, 2009

By Vincenzo Sciarretta

The European auto sector has soared over the last few weeks. But if in January or February you tried to tell people there were opportunities over there, everyone's eyes glazed over. People looked upon you with pity.

 There was no future for autos...Read More


File:Benito Mussolini.jpgItalian stocks below the 1943 and 1960 tops

April 4,2009

By Vincenzo Sciarretta

If you believe that Wall Street is cheap because the Dow Jones Industrial Average touched the mid-1990s levels, what about Italy, whose stock market is below the 1943 top, when Benito Mussolini planned to conquer the world along with his fellow-friend Adolf Hitler?...Read More



ECB: Ready to cut – But not to ease

Tomorrow, 2 April, the ECB ought to bring short-term rates to 1% from 1.5%. Some forms of quantitative easing are possible.

April 1,2009

The European Central bank ought to cut the refi rate to 1% (from current 1.5%) tomorrow, at its 2 April meeting. If the ECB does not reach 1% in April, it would very likely do so in May. But this notwithstanding the monetary authority will remain less profligate than its main counterparts,...Read More



Where is the euro going?

March 24,2009

             When asked about the outlook for the euro, exchange rate analysts seem quite puzzled.

 Out of the ten professionals surveyed by this magazine, some bet on a further strengthening of the common currency, while  ...Read More




Will Germany Break the Monetary Union Once Again?

March 10,2009

By Vincenzo Sciarretta

 What if the large and growing fiscal deficit in Germany break the Monetary Union once again? This would be the second time, the first time was early in the 1990s...Read More


Special Gold 1/3

Gold: Just In Case, It Is a Depression

February 23, 2009

Just in case we are dealing with a depression, you may want to look at gold as a safe haven for your money.

There is a noteworthy similarity between the position of the markets to-day and the position of the markets after the crash of 1929...Read More


Special Gold 2/3

When stocks go down, gold may help: statistics

February 23, 2009

During the 41 years since 1967 that gold has traded freely, the Dow Jones Averages has suffered 12 negative years. In 7 of them, gold increased its value.

Performance of Gold versus Dow Jones Industrial 1968-2008 ...Read More


Special Gold 3/3

Gold Demand: Investment is gearing up.

February 23, 2009

The latest quarterly “Gold Demand Trends”, issued by the World Gold Council, reports that world gold jewellery demand in the fourth quarter of 2008 was down by 6% in tonnage terms ...Read More


A Recession in Eastern Europe?

It Drags Down Especially Germany, Less France and Italy.

February 23, 2009

There has been a wide discussion on the impact that the crisis in central and Eastern Europe (CEE) has on the Eurozone through the banking channel...Read More






Recent interviews on the international scenario

Expect a non-inflationary boom in Europe

A conversation with Jean-Philippe Cotis, chief economist of the Organization for Economic Cooperation and Development (OECD).


Can the housing recession in the US cause a financial crisis?

Talking to an economist who began working at the Federal Reserve in the mid 1940s.



Don’t be surprised if US bonds rally

A conversation with Edward Boehne, former president of the Federal Reserve of Philadelphia.


The Fed may cut interest rates sooner rather than later
A conversation with Nobel Prize winning professor
Lawrence Klein and former central banker professor Bill Ford.

An interview with Jim Rogers

When the good news is that there's no news

You should hold your long positions in commodities.

But remember, markets do zigzag and corrections will come.

In Europe, defence stocks and mid-sized and small banks are still attractive.

An interview with Marc Faber

Oil toward $150?

Short-term, most assets are vulnerable. Stay on the sidelines waiting for better prices. Gold is good. Agriculturals are cheap. Industrial commodities may suffer on account of a weakening economy. In Europe he owns some bonds


An interview with Laurence Meyer,

former member of the Fed

Fed Funds at 5.5% by year-end

At the upcoming FOMC meeting to be held on Tuesday, August 8, market expectations are set for a pause. Uncertainty remains because the Fed could hike rates in reaction to inflation figures. However, Dr Meyer thinks that by year-end the cost of money ought to be at 5.5% (from current 5.25%).

An Interview with Nobel Prize Winner Kenneth Arrow:

“This is the best international economy ever”

Yes, there are some imbalances, but positive elements outweigh them.

The ‘70s with their vicious inflationary spiral are not coming back.

And the dollar, hopefully, will adjust gently.

An interview with David Berson

vice president of Fannie Mae

The US housing market is set to slow down

A 10% home sales drop this year is likely. Prices ought to rise below trend. Unfortunately, some areas are going to suffer from a combination of contracting sales and prices. Florida, California, Arizona and Nevada may include some of these vulnerable areas.


An Interview with Professor

Robert Shiller

What’s the next bubble?

The man who saw the folly of the Nasdaq written on the wall inspects the markets in search of risks you would never want to see materialized.


An interview with

William Ford,

ex chairman of the Federal Reserve of Atlanta

Confessions of a former central banker

Bond yields are going up, housing prices are bound to correct and the Fed may raise more than you expect.


Dr. Mark Mobius,

managing director of Templeton Asset Management LTD, Singapore.

Emerging Markets:

Yes, the opportunities are still there

A legendary and veteran guru analyses the outlook for Asia, Latin America, Africa and East Europe.