Through the Fed’s announcement to create inflation through currency debasement, the US Dollar managed to hold key support levels. While this feat is nothing short of miraculous, we believe the dollar’s days of holding key technical levels are soon to be over.
Peet’s Coffee & Tea (NASDAQ: PEET) and Green Mountain Coffee (NASDAQ:GMCR) are two coffee stocks showing up on our radar. With the price of coffee beans moving higher you have to wonder how much longer these two stocks can run. Margin erosion could occur in the near future as increased coffee costs are difficult to pass on to the consumer. Premium names could be punished as consumers trade down to cheaper brands.
Currency traders around the world are sizing up the value of the US Dollar (INDEX: $USD) this week. With news on potential Quantitative Easing II (QE2) coming tomorrow, traders expect further dollar weakness. The US Dollar Index is on the verge of a breakdown from a key 3-year support level.
Endeavour Silver (AMEX: EXK) & Allied Nevada Gold (AMEX: ANV) are two mining stocks popping up on our radar. With gold and silver declining in recent trading, each of these stocks are approaching key support levels. Tim Geithner’s comments defending the US Dollar has weakened gold prices – giving precious metals a short term sale on gold and silver.
NovaGold Resources, Inc. (AMEX:NG), Silvercorp Metals (NYSE:SVM) and Endeavor Silver Corp(AMEX:EXK) are three mining stocks climbing the wall of worry. Even with the massive run in precious metals prices, these three stocks could double yet again before the next presidential election.
Compania de Minas Buenaventura (BVN) recently printed all time highs in share price. The foreign based company is headquartered in Lima, Peru and has assets all over the world. The company is strategically positioned to capitalize on future margin expansion through its gold and silver holdings.
Peter Schiff, of Euro Pacific Capital uses illustrations, humor and storytelling to explain economic and monetary concepts in his book, How and Economy Grows and Why it Crashes. The book uses parody and analogy to compare our current global economy with a small island economy based on fishing.
Major media has painted Warren Buffett’s acquisition of Burlington Northern Santa Fe as a “bet on the future of America”. While Buffett’s purchase does indeed signal a bet on the future prospects of America – that doesn’t necessarily mean the future looks good.
Helicopter Ben has been steadily hovering over the United States throwing hoards of dollars at the so called credit crisis. We have all heard about the need for added liquidity into our financial system. However, few people realize the repercussions of cheap money