Montreal, Canada.

Dugald, my right hand at the office and responsible for global technical analysis for our client portfolios has repeatedly updated me on the state of trading volume on the NYSE since the intermittent March 9 low. It’s instructive to review why trading volume is important if this is truly a new secular or even cyclical bull market since March.

From a stock market perspective trading volume is the last big part of the puzzle that has yet to fall into place since March.

Montreal, Canada

Over the last few years The Sovereign Society has worked closely with St. Louis based Everbank (www.everbank.com). We’ve structured several foreign currency CDs, including the successful Sovereign All-Weather Portfolio and the Sovereign Asian Currency Portfolio. Both programs have posted gains since their inception amid dollar weakness.

Montreal, Canada

Are the banks out of the woods? It would seem that several of America’s largest financial institutions have escaped their Day of Reckoning as stocks prices have surged over the last four months. Though the largest banks are breathing a sigh of relief lately the regional and smaller banks in the United States are next on the chopping block as commercial loans continue to sour.

Montreal, Canada.

With Eric in transit today, I will take the opportunity to write about one of my favourite topics in his place: gold. It's no secret that he and I consider ourselves very much as gold bugs. And why not? In a world where fiat currencies are supported by countries burdened by incredible debt, it only seems natural to want to own a "real" currency.

Vancouver, Canada.
On the way to my hotel from Vancouver airport last night I couldn’t help but notice the hybrid taxis and electric buses. This certainly isn’t Montreal. Back home the only electric hybrid we have is a toaster – at least thus far.

But Vancouver, like California, has been going “green” for years and is highly conscious of its environment.

Montreal, Canada.

Since March credit spreads on the most speculative debt have crashed to their lowest levels since the Lehman Brothers bankruptcy in mid-September. High-yield or junk bonds now yield 12.60% compared to a post-Lehman Brothers bankruptcy high of 22.49% in October. And since the stock market lows on March 9 junk bonds have skyrocketed more than 55%.

Montreal, Canada.

The bear market rally since March 9 continues to gain momentum following a brief interruption since June 12. Asset inflation is back with a vengeance over the last five months as stocks and commodities surge following a collapse from October 2007 until March 9.

Montreal, Canada

Risk level and currency factors are perhaps the two most important variables for an investor to determine prior to commencing a global investment portfolio. Sadly, most investors fail to determine their appropriate risk level and worse, fail at understanding what the wrong currency exposure can imply to long-term portfolio returns.

Tønsberg, Norway

Mark Mobius, who runs the emerging markets team at Templeton Asset Management, warned that a new financial crisis will develop from the failure to effectively regulate derivatives and the extra global liquidity from stimulus spending.

Tønsberg, Norway

I’m back in Norway this week spending time with my girlfriend and checking out the annual Slottsfgell Festival or Castle Mountain Festival here in beautiful Tønsberg – about 75 kilometers south of Oslo. Over 10,000 guests are expected for this event, including rock concerts and open bars. Drinking gets started at 2pm on Thursday – not exactly my thing but definitely a big part of this bash.