Moments of striking irony should be relished like fine wine, enhancing our perception with every sip, making us feel wiser, younger, and more affluent. However, we must not squander them, lest they spoil.
Today, we take a moment to appreciate the rich irony that has emerged this week, served to us in a grand chalice. It is essential that we savor it before it turns bitter.
The do-gooders are gathering in Davos, Switzerland, to participate in the World Economic Forum, ostensibly to address serious global challenges. As stated in the conference program, they are “dedicated to improving the state of the world.”
This declaration invites a snicker, not only for its bravado but also for the sheer audacity of it. And the irony doesn’t end there…
As reported by CNN Money, “Billionaires and global leaders are descending upon the World Economic Forum in Davos, Switzerland, insisting on lavish travel arrangements.” Approximately 1,700 private flights are anticipated over the course of the week, double the typical amount. Continue reading
While the public fixated on the erratic fluctuations of the stock market and the dramatic decline of oil prices, we turned our attention to the 10-Year Treasury note. On Thursday and Friday, its yield dipped to 1.75 percent, the lowest level since May 2013.
Moreover, the 10-Year Treasury yields are inching closer to their historic low of 1.53 percent, briefly reached in July 2012. It’s important to remember that as Treasury yields fall, their prices rise, indicating that Treasuries are currently among the most expensive they have ever been.
With global financial markets displaying volatility, U.S. Treasuries are being perceived as a safe investment. As the old adage suggests, “They are the safest investment in the world.” Many investors are banking on the return of their principal, plus an additional 1.75 percent.
Here at the Economic Prism, we argue that 1.75 percent provides just enough leverage for individuals to find themselves in a precarious situation. However, take our skepticism with a grain of salt; we’ve been forecasting a reversal in the debt market for several years now. Continue reading
According to Saudi Prince Alwaleed bin Talal, we may never see oil prices reach $100 per barrel again, a sentiment that speaks to shifting market dynamics.
“If supply remains constant and demand continues to falter, you can rest assured [the price of oil] will decline further. However, if some supply is removed from the market and demand picks up, prices could rise. But I’m confident we’ll never see $100 oil again,” Prince Alwaleed asserts.
This perspective marks a significant turnaround. Who would have predicted back in June 2014, when oil surpassed $107 a barrel, that it would plummet to the mid-$40s by January 2015? We’re not aware of anyone making such a prediction—do you know of anyone?
Even industry experts were caught off guard. For instance, Southwestern Energy had no inkling of the impending downturn; just last October, they invested $5.3 billion to acquire oil reserve properties from Chesapeake Energy.
Now, a mere three months later, the dramatic fall in oil and gas prices has diminished the value of those properties significantly. Continue reading
Jim Rogers, a well-known investor and author, firmly believes that agriculture is poised for significant economic growth. He predicts increased food shortages and sees ample opportunities for diligent individuals, as relatively few are interested in farming.
“If you wish to invest in agriculture, the best approach is to become a farmer yourself,” Rogers advises. “Purchase land and farm it yourself—even if you’re only moderately skilled—because fortunes are likely to be made in agriculture. When an industry has robust growth, even average players can thrive as conditions favor them.”
“To maximize your earnings, that’s the most effective strategy. Alternatively, you could buy land and lease it to a good farmer,” he adds.
“There are numerous avenues to profit in agriculture. Consider opening a chain of restaurants in agricultural regions, as farmers will likely fare much better in the coming 30 years compared to the past.” Continue reading
