Bill Bonner's Diary


The Most Important Investing Lesson I Ever Learned

We're in Washington Dulles airport, on our way to India. As we write, the Dow is down some 300 points... and still falling. As Chris has written about in his Market Insight columns, it's still way too early to know if the bull market trend of the last five years has run its course. Mr. Market may be exhausted...

The US Economy Is Growing Much Slower Than You Think…

"Products are paid for with products," said French economist and free-trade proponent Jean-Baptiste Say. He meant that if you want to get something, you better have something you can trade for it. What would Say make of the latest US GDP report? Last week brought two important pieces of news: one deceptive, the other fraudulent. The deceptive news was...

Why the Fed’s ‘Taper’ Won’t Work

On Thursday, the United State Department of Commerce said the US economy was growing at a 3.2% annual rate, which is satisfactory. Until you look at it more closely. On Thursday, too, stocks went up – 109 points on the Dow. The Fed had little choice. It has to pretend to go straight at least for a month or...

Is the Greatest Bull Market of All Time Now Over?

In the spring of 1982 we were glued to the TV. Not to reruns of "Hogan's Heroes" or "M*A*S*H," but to a real, live war. Argentine dictator General Leopoldo Galtieri believed Argentines needed a little patriotic diversion from the grim stories of murder, mayhem and economic mismanagement that plagued his leadership. Britain had ruled the Falkland Islands (Spanish: Islas...

Why Things Will End Badly for Investors in US Stocks

Yesterday, we reported on the latest money woes in Argentina. Today, we turn back to the US. The Dow caught a bid yesterday, with a 90-point rise, bringing it to rest at 15,928. That's 15,017 points higher than the low it hit in 1981, just after Ronald Reagan was elected. In 1982, US stocks began a sustained and spectacular...

Get Ready for the Next Emerging Market Crash…

Blame Argentina! Some people think it was the 15% drop in the peso that triggered the recent selloff in the emerging markets... and back in the US of A. On the last two days of the week, the Dow lost nearly 500 points. And on Saturday, after-hours trading signaled worse to come. It looked as though the Dow would drop...

Don’t Buy the Dip…

On Friday, the Dow suffered its worst one-day percentage decline since November 2011. The index plunged by nearly 2%. The S&P 500 didn't fare much better. It plunged by 2.1% – its biggest one-day percentage drop since June 2012. So far in 2014, the S&P 500 has lost 3.1%. And the Dow is down 4.2%. Mainstream pundits say the...