A person whom I usually would say is insane, was lecturing me last week about all of the natural disasters: the earthquakes in Japan, New Zealand and other lesser earthquakes around the world, the hurricanes, the tornadoes and all of the other natural disasters. According to this person (who again I have always believed to be insane) is indicative of a serious world problem. Now, it appeared as though my friend was going to lecture me on biblical prophesy, but instead, he said something rather profound: “this indicates to me that everything is out of balance in the world” and until it gets into balance the natural disasters will continue and so will all of the unrest in the world. I can not tell you what that means, I will just pass it along.
The earthquake and its recurrent effects to Japan and the rest of the world will take weeks and months to determine. Arnold finds it fascinating that reports state that only 5% of the losses are insured, when Japan has a history of serious earthquakes that goes back hundreds of years, while New Zealand, which has a history of minor earthquakes, but not serious earthquakes reportedly was largely covered by insurance. Go figure! The fallout from the nuclear energy and the earthquake now appears to have ended any real likelihood of nuclear power in the United States. The environmentalists won’t allow oil drilling, natural gas drilling, deep water drilling, coal mining or nuclear energy. Oil, natural gas and coal are unacceptable. While all of the environmental favorites; wind, solar and renewable energy are completely and totally cost inefficient. Well, actually inefficient is incorrect; the costs of wind, solar and renewable energies are many TIMES higher than coal, oil and natural gas.
The Libyan situation appears to be ending well for Qaddafi; not so well for the “rebels”. The Libyan (soon to be) success in stability, coupled with the Egyptian (more or less) stability should discourage (for the time being) any further actions by the anti-regime forces in the Middle East.
According a survey (linked here) of US millionaires 42% of them did not feel wealthy and in order to truly feel wealthy they felt that they needed $7.5 million of investible assets in order to feel rich.
• The DJIA had held up remarkable well. When the decline relating to Japan is over the market will start to rise again.
• Gold looks lower. the gold stocks have been falling; so to Arnold this looks negative.
• Oil also should be higher. Should oil break down below $90; that would seem to suggest oil will be much lower.
• The dollar should be bottoming soon, then start rise.
• Interest rates look higher; but we may need to wait for a few months; because of the Japan situation.
• Real estate pricing should be lower for the next couple of years.
• The economy continues to look weak.
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