If you want to find a metal that’s actually rising on hopes of a healthy worldwide economic recovery, the decidedly less sexy copper is your bet.
“Copper prices are strongly correlated with global manufacturing activity,” said Ben Ross, portfolio manager for GE Asset Management’s Commodities strategy team in Stamford, Conn.
But here’s the strange thing about copper. The metal is up nearly 30% this year even though there are growing fears about the economic health of the world’s largest consumer of copper: China.
Posted by Jennifer Thompson on Dec 20 14:20.
Jerry Bowyer, 12.16.10, 03:15 PM EST
Students are foregoing six years of full-time income for their six years of full-time education. Let’s say an average of $10 per hour (something like $8/hour right out of high school, trending toward $12/hour after six years’ work), which comes out to $20,000 dollars per year, which is $120,000 over six years. Add that opportunity cost to our hard cost and we get $270,000 to $170,000. Let’s just make it an even $200,000 and keep the numbers round and the nitpickers mollified. That’s the P.
Let’s generously and roundly assign the initial E from college a value of $2,000.
Voilá, our P/E is 100. Is that a good deal? Not really. Even if one argues that the difference, the College E, grows over time, so what? So do stock earnings. If you think that the E grows quickly over time, then you can think of a degree as a growth stock and compare a 100 P/E to that. It still doesn’t look very attractive.
And let’s keep something very important in mind: A college education contains a risk factor that no stock or bond does: zero liquidity. For good or for ill, you’re stuck with it.
2:55 pm – December 12, 2010
In that respect, there is something I think of as “the Von Mises prophecy,” which is a sort of one paragraph summation of Austrian thought — anchored to a prediction — as put forth by Ludwig Von Mises himself:
There is no means of avoiding the final collapse of a boom expansion brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
December 13, 2010 Warning – An Updated Who’s Who of Awful Times to Invest
John P. Hussman, Ph.D.