You wouldn’t want to underestimate the perfidy of the government. I have no doubt that the government will need to increase revenues substantially to avoid default on either debt or social welfare promises. How they will increase those revenues, I can’t predict. Porter Stansberry Read Quote
Historically, bad money always drives out good. Accordingly, if a central bank anywhere in the world sets up its currency to be backed by any kind of hard currency, it would cause people all around the world to desire that currency for their savings, rather than dollars. Porter Stansberry Read Quote
There is a tremendous amount of oil in Iraq and it’s still very, very cheap due to all the political uncertainty. So if you want to be a serious oil investor, I would say get yourself to Iraq in person and look around to find great opportunities. Porter Stansberry Read Quote
You know that Mexico has enormous natural gas reservoirs that have yet to be tapped and the technology for tapping these alternative reservoirs continually needs to get better and better. Porter Stansberry Read Quote
Relative to oil, however, natural gas is very cheap and very attractive. And I think that natural gas in emerging markets is very attractive. There is very little natural gas infrastructure in places such as China, where there is tremendous demand for natural gas. Porter Stansberry Read Quote
You see this in the oil industry time and time again. Fears that we’ve found the last oil, that we’re going to run out, pop up constantly. And soon afterward, because the price goes up, huge new reservoirs are discovered. Porter Stansberry Read Quote
Because America is the Saudi Arabia of natural gas. We have the world’s largest reserves of natural gas, and the world’s most sophisticated production and storage facilities, by a wide margin. Porter Stansberry Read Quote
I studied what happened in the bond and the stock markets during previous periods when the Fed stopped manipulating the bond market. In every single case, the moment the Fed announced that there would be a cessation of intervention, stocks declined and interest rates went up. Porter Stansberry Read Quote
Manipulating the bond market is so greatly reducing the cost of capital that so far companies have been able to maintain profit margins without raising prices. As a result, we’ve been exchanging capital cost for commodity costs but you can only do that for so long. Porter Stansberry Read Quote
Stock price multiples are negatively correlated with real interest rates. As interest rates rise, the market multiple will fall. Porter Stansberry Read Quote
