EditorQ1

The debt ceiling deal is done and now it’s onto the next “crisis.” The deal went down to the arbitrarily assigned deadline and, although details are still coming out, we know a few critical things already. The key is these cuts aren’t really cuts at all. The always discerning folks at the Cato Institute showed how deep these “cuts” really go in Budget Deal Doesn’t Cut Spending : As you can see, the cuts are really just cuts in expected spending. If you wanted to buy a $30,000 car... Read Full Story

By Andrew Mickey, Q1 Publishing The last few weeks have brought weakening economic numbers, stellar earnings reports, political theatrics, record gold prices, and the first hint at a potential QE3. All the “good” news has pushed the Dow back to just 10% below its all-time highs from October 2007. In times like these, when fear of missing out outweighs fear of a market downturn, we have to reiterate this all will end badly. But, it’s not likely to end badly soon. Here’s why it will... Read Full Story

The deadline to raise the debt limit is now just a few weeks away. Both sides have completed their focus groups, refined the key words they want to endlessly repeat (i.e. “millionaires and billionaires” or “corporate jets”), and have staked out their positions. The winner in this battle will be, as in most political compromises, no one. The eventual debt limit deal is doomed to completely fail. Sure, it will provide some short-term relief. Maybe it will even reduce the pervasive and... Read Full Story

There’s a new type of oil that’s causing a major stir in the markets. This oil boom has nothing to do with crude oil or energy though. But it still has the potential to be just as profitable. I’m talking about krill oil. Krill are tiny shrimp-like crustaceans. They are usually between one and five centimeters long. They are found in extremely cold water like the frigid waters of the northern Pacific and offshore Antarctica. The tiny creatures produce a unique kind of oil that has... Read Full Story

There’s nothing that attracts more investors – and eventually costs them more money – than a hot new growth sector. Right now the hot new thing is social networking. The stunning growth of Facebook over the years has whetted Wall Street’s appetite for any and all things social networking-related. Last week’s screaming IPO of LinkedIn (NASDAQ:LNKD) and the lengthy run-up of Renren (NYSE:RENN) – touted as the “Facebook of China” – are perfect examples. The smashing success of these two... Read Full Story

Thomas Kempis said, “The loftier the building, the deeper must the foundation be laid.” More than 600 years the words couldn’t be any truer when applied to stock rallies. Rallies have historically been built on foundations of improving earnings, widening margins, innovation, and economic growth. They are fundamental, solid, and deep foundations. As the foundation grew stronger, the higher valuations could be supported. The current rally has been built on none of those. It has been built... Read Full Story

By Andrew Mickey, Q1 Publishing Let the fear-mongering begin. The debt ceiling debate has been positioned as a lose/lose situation. Some claim a failure to increase the debt ceiling will lead to near-term financial Armageddon. They say the U.S. government can’t cut spending now. Deep cuts would kill the economic recovery. Others predict increasing the debt ceiling will show the U.S. is not serious about its debt and will lead to financial Armageddon. They say additional spending cuts... Read Full Story

Reports of $5-plus gas popping up across the country are a major distraction. Most consumers are reminded a couple times a week how high gas prices are. The media highlights them every day. They always get a lot of attention. High prices at the pump, however, are normally more of a distraction than anything else. The most recent run-up is no different. Right now they’re masking a much bigger energy crunch. And they’re distracting many investors from one of the last remaining undervalued... Read Full Story

The odds of a long-awaited precious metals correction increased this week. Gold and silver have been setting new high after new high. Gold is up $100 and silver’s up more than $10 since President Obama ruled out significant spending cuts in his mid-April budget speech and the Fed chairman noted inflation will be “transitory.” The strong uptrend, however, showed its first signs of weakness in months this week. Gold has fallen for three straight days and silver is down nearly 20% from its... Read Full Story

What’s the best move to make right now? Stocks are up 9% in four months. The P/E ratio of the S&P 500 is just shy of 25. That’s right in between the 1929 and 1987 highs - both of which preceded crashes Bonds, yielding anywhere from 1% to 10% depending on quality, offer have huge risks and not much reward. Meanwhile, a recent Gallup survey revealed 55% of Americans felt the U.S. was in a recession. More than half of those felt we were in a depression. The combination is inherently... Read Full Story