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Jim Cook



Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

Best of Aubie Baltin
September 14, 2010
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We, the people, borrowed and spent. Congress taxed, borrowed and spent and we voted for those idiots and collectively asked for more FREE goodies. Maybe not you, because all my readers are too smart to have engaged in such recklessness, but those other guys sure did (probably the readers of the New York Times and Paul Krugman).

I asked my closest friend how his business was doing. "We are doing great!" he said. That was not the answer I was expecting. "Why? How?" I asked.  "Simple, as you know most of my competitors were big companies and they carried a lot of Inventory and heavy debt and they have since folded. I survived because I carried NO DEBT and run a very tight ship and carry no inventory to speak of. Better to miss a sale or two than to get stuck with big inventory that is falling in price. And thanks to you, If I make a mistake and buy too much, I dump it at any price just to make sure that I don’t get stuck with a large inventory that is declining in value. So I survived and got a good part of what remained of their business as well as their very best sales people." There is less business, but there are even fewer competitors. Do you need to know more? No! That’s just further proof of the saying, “ill is the wind that does not blow some good to somebody.”

Total value of U.S. homes has fallen by $7 trillion.

That is $5 trillion more than the $2.5 trillion of “out of thin air” money injected by the FED and Treasury.  No wonder the money supply is falling.

The primary conclusion to draw from this is that even with the Fed's QE program in place and the low summer volumes, the bulls could not take out any meaningful overhead resistance. This is critical as it indicates that the upwards momentum has been broken. If we were going to see something more to the upside, it should have started by now. But it didn't. Investors pulled $33 billion from equity mutual funds so far in 2010. Last week I showed you the Mutual Funds cash positions. If they keep up the pace, it will be the biggest run on mutual funds in more than 20 years, not counting the panic stirred up by the banking crisis in 2008. People, big and small, appear to be “losing their appetite for risk.” Witness the piles of money pouring into zero coupon Treasuries. This is, of course, helping set the stage for the next Bull Market after the Treasury Bubble bursts, sometime between now and 2011. As you are all aware, it requires ever increasing amounts of money to sustain a Bull Market in anything especially stock and the Treasury Bubble. Even though we are in a down market we are always looking for the NEXT BUY opportunity.