London, England

The flight from Vienna to London Heathrow was barely half full. And the usual hustle and bustle so typical of Heathrow was mysteriously absent yesterday afternoon when I arrived.

Indeed, London is not beating to the same rhythm it was just three years ago.

Hope springs eternal. That's how to best describe the situation in Central Europe and the Baltic Republics this year following a crash in 2008.

For Austria, the implications for a swift recovery in the region are vital to the long-term viability of this nation's regional influence and its anchor as an economic hub for Eastern European trade. In 2008, that important link almost collapsed as the financial system was literally on the brink.

- Dugald Malcolm

Montreal, Canada

The price of gold continues to climb this morning, with the futures contracts now trading up $23.50. At a whopping $1,170.30, the yellow metal continues to push to new highs. Since breaking out of its symmetrical triangle consolidation pattern on September 2nd, the price of gold has gained nearly 10%.

Montreal, Canada

At exactly the wrong time many governments around the world are raising taxes to boost depleted coffers amid a spending binge since late 2008. Costly bailouts are compelling politicians in the West to raise taxes – probably the dumbest policy mistake amid a deflation in household assets and surging unemployment.

Montreal, Canada

Small-cap stocks remain comfortably above their 200-day moving average in mid-November and have spearheaded the recovery off the March lows. But signs of weakness have begun to emerge over the last few weeks and might portend to a broader sell-off – long overdue at this stage of the historical rally.

Since March, the Russell 2000 Index of small companies has gained 75% compared to 64% for the S&P 500 Index – dominated by America's 500 largest companies based on stock market capitalization.

Montreal, Canada

As December gold tops $1,146 this morning (+10% in November) there's one missing ingredient required to legitimize this historical bull market; silver must exceed its March 2008 high of $20.78 an ounce. Spot silver trades at $18.71 an ounce this morning in New York.

Montreal, Canada

The bull market in Treasury bonds since 1982 is heading into the bear's digestive system over the next 12-24 months. Some of the shrewdest investors, including Tiger Management founder, Julian Robertson, Jr, have begun to initiate bets against U.S. Treasury bonds in anticipation of higher interest rates (See October 20, 2009 blog on Julian Robertson, Jr.).

Montreal, Canada

Are we placing too much faith in China and central banks to save the global economy? The answer appears to be a resounding "yes" and the consequences of this hopeful relationship will be absolutely dreadful once the markets turn against the madness of crowds.

Montreal, Canada

One of the true hedge fund greats has called it quits.

John Horseman, 51, who launched Horseman Capital in London nine years ago and who runs the Horseman Global Fund, has decided to resign after almost 30 years managing stock portfolios. During his tenure this decade Horseman has belted out more than 16% per annum while earning more than 30% in last year's global market meltdown when just about everyone else was mauled.

Montreal, Canada

There's no doubting that this decade belonged to emerging markets. Equity and fixed-income markets in this asset class will post their best ten-year stretch since the early 1990s as we shortly conclude another decade next month.