Lost in the Shuffle (intc, rtn, msft, tlt, aapl)

It was somewhat lost in the shuffle in Wednesday.
Investors were so stunned at Fed Chief Ben Bernanke’s admission that
commodity inflation might accelerate over the next few months before the
Fed is forced to act on interest rates, they missed the part where the
Fed lowered its 2011
GDP
growth estimates from a range between 3.4% — 3.9%
to 3.1%.

For anyone pinning his or her hopes on 3.9%,
that’s got to be disappointing.

But after yesterday’s first read of Q1 2011
GDP growth — a
measly 1.8% — investors are likely to take another look at the total
message delivered by the Fed.

Who’s Going to Pay?

The Federal government is on the verge of shutting
down as politicians are unable to agree on budget cuts for 2011. Yes,
2011. It’s April, and Congress has failed to approve a budget for the
year.

I’m not pointing any fingers here. But there are a
few things that make me wonder. 5% of the
U.S. population controls nearly
64% of American wealth. And yet budget proposals would rather restructure
Medicaid than raise taxes on the most wealthy.

The Surest Way to Profit from Silver

Silver broke another price record today, heading above $39 an ounce for the
first time in 31 years.

Of course, if you adjust for inflation, silver is still well below the old
record of $122 an ounce.
In related news, Federal Reserve Chairman Ben Bernanke tried to downplay
inflation fears in a speech yesterday.

He said,

Utah Returns to the Gold Standard

Lawmakers in New Hampshire, South Carolina, Tennessee and Virginia have
introduced bills that would allow them to mint their own currencies, or
otherwise allow for alternative currencies to settle debts both public
and private.

Utah recently passed a bill recognizing gold and silver as legal tender.

Texas Congressman Ron Paul recently introduced a bill which would allow
gold and silver (among other precious metals) to compete with Federal
Reserve notes.

Radiation from Japan Leaks into Global Markets

The Wall Street Journal reported today that troubles in Japan
aren’t staying on the island nation. Instead, they’re spreading
throughout the world.

From the Journal’s article, “Global markets plunged as deepening worries
over the specter of a nuclear power crisis in Japan in the wake of last
week’s earthquake and its economic implications sent investors scurrying
again for safety.”

This piece begs the question: what’s safe these days? Is the U.S. Dollar
safe? Are U.S. Treasuries safe?

S&P 500 to 1,280?

Days like yesterday are never fun. The selling hit
everything; oil stocks, tech, stocks, commodities, retail, gold, silver,
you name it, it was down. Well, except for Treasuries and the U.S.
dollar.

Treasuries are a safe-haven, but in a different
way than precious metals. Precious metals protect wealth over the
long-term. Treasuries can generate a return even for a trade.

$36 Silver Dominates at the World’s Largest Mining Conference

The Prospectors and Developers
Association of Canada (PDAC) mining conference just concluded here in
Canada’s largest city.

And with silver in the headlines, breaking through $36 an ounce for the
first time in 30 years, silver dominated the most sought after
presentations, interviews and companies.

You see, even though silver is breaking nominal price records, it’s still
not even close to inflation adjusted records — which, if you believe the
government — are at least four times higher than today’s prices.

Oil is Hot, Silver is Hotter

Oil is getting all the headlines, as it jumps over $100 a barrel for the
first time in 3 years as Libya’s production is essentially shut down. But
it’s silver that’s really setting records.

Silver prices are projected to more than double this year.Silver
hit a 31-year high just below $35 an ounce on Tuesday.

Silver is benefiting from the same inflation concern that’s pushing gold
prices higher. But unlike gold, silver also has industrial uses.

That means silver prices may be more stable than gold.