Warren Buffet was asked how he came to be one of the richest men on earth. He answered that, 1) he was lucky enough to be born in America, 2) he had good genes, and has lived to his eighties, and 3) he understood the almost miraculous power of compounding through time.
Turning to the present situation, copper has fallen to a four-year low, and oil has dropped into the fifties. The Fed has not been able to crank the economy up to its desired level of 2% inflation. The Fed, in its frantic effort to counter deflation by producing inflation, has turned almost everything into a bubble. Bonds are in a bubble, stocks are in a bubble, real estate is in a bubble. The Fed has created an “everything bubble.” Seeing prices rise, money from all over the world is pouring into the US dollar and US stocks. This is creating ... Log in or subscribe to continue reading.