From Dan Ferris in DailyWealth:
Since November 1, long-term U.S. Treasury bonds have fallen 7% in value. That's not supposed to happen. But it's happening.
Since November 1, the municipal bond market has fallen 6%. That, too, isn't supposed to happen. But it's happening.
For most of the last century, the whole world has believed the obligations of the U.S. government – and the obligations of thousands of states, cities, towns, and other municipalities in the U.S. – were the safest investments in the world. These "safe" investments aren't supposed to crash.
The reason U.S. Treasurys and municipal bonds are crashing is by far the most important financial development of 2010...
Read full article...
More on U.S. Treasurys:
It can't get any better for bonds right now...
Marc Faber: The bear market in bonds is just beginning
Interest rates soaring: Treasury yields are now higher than before Fed announced "QE2"
View the original article here
Monday, December 27, 2010
Thursday, December 23, 2010
Oil could be starting another runaway move
From Newsmax:
Oil prices surged to a 26-month high on Wednesday near $91 a barrel as a third straight weekly drop in U.S. crude inventories and cold weather on both sides of the Atlantic spurred pre-holiday buying.
Crude stockpiles fell 5.3 million barrels last week, bringing the past three weeks' declines to 19 million barrels, roughly equivalent to one day of U.S. fuel consumption. Companies have drawn down inventories for year-end accounting purposes, analysts said.
U.S. data showed the economy picked up in the third quarter, signaling a more solid pace of recovery and improving oil demand prospects.
A Reuters poll released on Wednesday showed a surge in...
Read full article...
More on oil:
Why oil may never be cheap again
Marc Faber: The three commodity investments you must buy now
Top energy firm: Oil will be the world's primary fuel for the next 25 years
View the original article here
Oil prices surged to a 26-month high on Wednesday near $91 a barrel as a third straight weekly drop in U.S. crude inventories and cold weather on both sides of the Atlantic spurred pre-holiday buying.
Crude stockpiles fell 5.3 million barrels last week, bringing the past three weeks' declines to 19 million barrels, roughly equivalent to one day of U.S. fuel consumption. Companies have drawn down inventories for year-end accounting purposes, analysts said.
U.S. data showed the economy picked up in the third quarter, signaling a more solid pace of recovery and improving oil demand prospects.
A Reuters poll released on Wednesday showed a surge in...
Read full article...
More on oil:
Why oil may never be cheap again
Marc Faber: The three commodity investments you must buy now
Top energy firm: Oil will be the world's primary fuel for the next 25 years
View the original article here
A bond MASSACRE is approaching
From Bloomberg:
Bond mutual funds had the biggest client withdrawals in more than two years last week as a flight from fixed-income investments accelerated.
U.S. bond funds experienced withdrawals of $8.62 billion in the week ended Dec. 15, up from $1.66 billion the week before, according to a release from the Investment Company Institute, a Washington-based trade group. Last week's withdrawals were the largest since the week ended Oct. 15, 2008, when investors yanked $17.6 billion from bond funds.
Investors are retreating from bond funds after signs of an economic recovery and a stock market rally increased speculation that interest rates may rise. The selloff in Treasurys accelerated after the Federal Reserve last month pledged to buy $600 billion in assets to revive the economy. The 10-year note yields 3.35 percent, up from 2.49 percent Nov. 4, according to data compiled by Bloomberg.
Most of the money was probably pulled by institutional investors looking to lock in higher yields by buying bonds directly, rather than through funds, said Geoff Bobroff, a consultant based in East Greenwich, Rhode Island.
"I would guess most retail investors are staying put because you aren't seeing the money go anywhere else," he said in a telephone interview.
Vanguard, Pimco
Removals included $3.77 billion from taxable bond funds and $4.85 billion from municipal bond funds. U.S. stock funds had withdrawals of $2.4 billion while foreign equity funds attracted $2.24 billion in the week, ICI said.
Investors put $245 billion into bond mutual funds this year through November, bringing net deposits since the end of 2007 to $636 billion, according to data from Chicago-based Morningstar Inc. Vanguard Group Inc., based in Valley Forge, Pennsylvania, had deposits of $33.4 billion into its bond funds through November while Franklin Resources Inc. of San Mateo, California got $23.7 billion, Morningstar data show.
Pacific Investment Management Co., the Newport Beach, California-based firm that runs the world's biggest mutual fund, attracted $57 billion to its bond funds in the first 11 months of the year.
The $250 billion Pimco Total Return Fund, managed by Bill Gross, had its first net withdrawals in two years in November as investors pulled $1.9 billion, Morningstar reported. Pimco Total Return this month said it is expanding its policy to allow investments in equity-linked securities for the first time since 2003.
"Fixed-income has been the lifeline for a lot of these firms," Douglas Sipkin, an analyst with Ticonderoga Securities in New York, said in an interview earlier this month.
Pimco this month raised its forecast for U.S. economic growth next year as policy makers pump a "massive amount" of stimulus into the economy, Chief Executive Officer Mohamed El-Erian said.
To contact the reporter on this story: Charles Stein in Boston at cstein4@bloomberg.net.
More on bonds:
Ten signs that confidence in U.S. Treasurys is dying
Marc Faber: The bear market in bonds is just beginning
Former Fed chief Greenspan: A bond market crisis is coming
View the original article here
Bond mutual funds had the biggest client withdrawals in more than two years last week as a flight from fixed-income investments accelerated.
U.S. bond funds experienced withdrawals of $8.62 billion in the week ended Dec. 15, up from $1.66 billion the week before, according to a release from the Investment Company Institute, a Washington-based trade group. Last week's withdrawals were the largest since the week ended Oct. 15, 2008, when investors yanked $17.6 billion from bond funds.
Investors are retreating from bond funds after signs of an economic recovery and a stock market rally increased speculation that interest rates may rise. The selloff in Treasurys accelerated after the Federal Reserve last month pledged to buy $600 billion in assets to revive the economy. The 10-year note yields 3.35 percent, up from 2.49 percent Nov. 4, according to data compiled by Bloomberg.
Most of the money was probably pulled by institutional investors looking to lock in higher yields by buying bonds directly, rather than through funds, said Geoff Bobroff, a consultant based in East Greenwich, Rhode Island.
"I would guess most retail investors are staying put because you aren't seeing the money go anywhere else," he said in a telephone interview.
Vanguard, Pimco
Removals included $3.77 billion from taxable bond funds and $4.85 billion from municipal bond funds. U.S. stock funds had withdrawals of $2.4 billion while foreign equity funds attracted $2.24 billion in the week, ICI said.
Investors put $245 billion into bond mutual funds this year through November, bringing net deposits since the end of 2007 to $636 billion, according to data from Chicago-based Morningstar Inc. Vanguard Group Inc., based in Valley Forge, Pennsylvania, had deposits of $33.4 billion into its bond funds through November while Franklin Resources Inc. of San Mateo, California got $23.7 billion, Morningstar data show.
Pacific Investment Management Co., the Newport Beach, California-based firm that runs the world's biggest mutual fund, attracted $57 billion to its bond funds in the first 11 months of the year.
The $250 billion Pimco Total Return Fund, managed by Bill Gross, had its first net withdrawals in two years in November as investors pulled $1.9 billion, Morningstar reported. Pimco Total Return this month said it is expanding its policy to allow investments in equity-linked securities for the first time since 2003.
"Fixed-income has been the lifeline for a lot of these firms," Douglas Sipkin, an analyst with Ticonderoga Securities in New York, said in an interview earlier this month.
Pimco this month raised its forecast for U.S. economic growth next year as policy makers pump a "massive amount" of stimulus into the economy, Chief Executive Officer Mohamed El-Erian said.
To contact the reporter on this story: Charles Stein in Boston at cstein4@bloomberg.net.
More on bonds:
Ten signs that confidence in U.S. Treasurys is dying
Marc Faber: The bear market in bonds is just beginning
Former Fed chief Greenspan: A bond market crisis is coming
View the original article here
Tuesday, December 21, 2010
How you'll know when the gold market tops
From Sovereign Man:
My friend Doug Casey has frequently written that you’ll know the bull market for gold has peaked when there’s a picture of a golden bull tearing up the dollar or the New York Stock Exchange on the cover of Time Magazine.
I have a similar view, but with a different indicator.
I’m sure you’ve seen those TV commercials, fliers, and billboards that say “WE BUY GOLD”. The business model is simple– they take in whatever gold you can find around the house (a false tooth, granny’s wedding ring, etc.) and trade you for worthless paper money.
If that’s not bad enough, they capitalize on people’s ignorance of the gold market and offer a ridiculously low valuation, sometimes less than 50% of the spot price for gold. People are getting ripped off, and they’re happy about it because they’re able to sell their ‘junk’ for a few extra bucks.
These are the types of things that are common in a rising bull market that has...
Read full article...
More on gold:
This chart says the gold mania is coming
The No. 1 reason you must own gold and silver now
Man denied access to his gold at Swiss bank: "The gold was not there"
View the original article here
My friend Doug Casey has frequently written that you’ll know the bull market for gold has peaked when there’s a picture of a golden bull tearing up the dollar or the New York Stock Exchange on the cover of Time Magazine.
I have a similar view, but with a different indicator.
I’m sure you’ve seen those TV commercials, fliers, and billboards that say “WE BUY GOLD”. The business model is simple– they take in whatever gold you can find around the house (a false tooth, granny’s wedding ring, etc.) and trade you for worthless paper money.
If that’s not bad enough, they capitalize on people’s ignorance of the gold market and offer a ridiculously low valuation, sometimes less than 50% of the spot price for gold. People are getting ripped off, and they’re happy about it because they’re able to sell their ‘junk’ for a few extra bucks.
These are the types of things that are common in a rising bull market that has...
Read full article...
More on gold:
This chart says the gold mania is coming
The No. 1 reason you must own gold and silver now
Man denied access to his gold at Swiss bank: "The gold was not there"
View the original article here
What the tax-cut extension means for you
From Financial Samurai: Hip hop hooray! With House Democrats agreeing to not hold the middle class hostage anymore, the tax bill passed 277-148! It was a landslide victory, but still it's interesting to see that there were 148 dissenters. What's more amazing is that Democrats weren't able to lower the estate tax exemption amount of $5 million per individual, and raise the estate tax level of 35%. Talk about bad negotiating!
The real fun now begins where we all do rough pro forma calculations of how much more disposable income we'll have in 2011 and potentially 2012! First off, I'm glad to see that everybody will pay 2% less on the first $106,800 they earn thanks to a cut in payroll taxes (Social Security and Medicare) from 6.2% to 4.2%.
From $100,000 to $172,000 (28% Federal marginal tax bracket for singles), you really aren't going to see much of a change in that money earned after, because the government wasn't going after you guys. But, for all you lucky ducks who make $172,000-$380,000 (33% Federal marginal tax bracket for singles), and $380,000+ (35% Federal marginal tax bracket for singles), you're in for a big treat!
... Note, If you make anywhere between $106,801 and $172,000 your disposable income only increases by $2,136. If you make under $106,800, you'll save...
Read full article...
More on taxes:
Your property taxes are probably too high
Why Democrats are crazy to hate tax cuts for the rich
Upcoming gov't loophole will allow huge estate tax avoidance
View the original article here
The real fun now begins where we all do rough pro forma calculations of how much more disposable income we'll have in 2011 and potentially 2012! First off, I'm glad to see that everybody will pay 2% less on the first $106,800 they earn thanks to a cut in payroll taxes (Social Security and Medicare) from 6.2% to 4.2%.
From $100,000 to $172,000 (28% Federal marginal tax bracket for singles), you really aren't going to see much of a change in that money earned after, because the government wasn't going after you guys. But, for all you lucky ducks who make $172,000-$380,000 (33% Federal marginal tax bracket for singles), and $380,000+ (35% Federal marginal tax bracket for singles), you're in for a big treat!
... Note, If you make anywhere between $106,801 and $172,000 your disposable income only increases by $2,136. If you make under $106,800, you'll save...
Read full article...
More on taxes:
Your property taxes are probably too high
Why Democrats are crazy to hate tax cuts for the rich
Upcoming gov't loophole will allow huge estate tax avoidance
View the original article here
Monday, December 20, 2010
Surging oil could set off another financial crisis
From The Economic Collapse:
Oil prices are starting to spin out of control once again.
In London, Brent North Sea crude for delivery in February hit $91.89 a barrel on Friday. New York crude moved above $88 a barrel on Friday. Many analysts believe that $100 oil is a virtual certainty now. In fact, many economists are convinced that oil is going to start moving well beyond the $100 mark.
So what happened the last time oil went well above $100 a barrel?
... [W]e had a major financial crisis. Not that subprime mortgages, rampant corruption on Wall Street and out of control debt didn't play major roles in precipitating the financial crisis as well, but the truth is that most economists have not given the price of oil the proper credit for the role that it played in almost crashing the world economy.
... [N]ow that oil prices are on a relentless march upward again, what can we expect this time?
Read full article...
More on oil:
Why oil may never be cheap again
Marc Faber: The three commodity investments you must buy now
Top energy firm: Oil will be the world's primary fuel for the next 25 years
View the original article here
Oil prices are starting to spin out of control once again.
In London, Brent North Sea crude for delivery in February hit $91.89 a barrel on Friday. New York crude moved above $88 a barrel on Friday. Many analysts believe that $100 oil is a virtual certainty now. In fact, many economists are convinced that oil is going to start moving well beyond the $100 mark.
So what happened the last time oil went well above $100 a barrel?
... [W]e had a major financial crisis. Not that subprime mortgages, rampant corruption on Wall Street and out of control debt didn't play major roles in precipitating the financial crisis as well, but the truth is that most economists have not given the price of oil the proper credit for the role that it played in almost crashing the world economy.
... [N]ow that oil prices are on a relentless march upward again, what can we expect this time?
Read full article...
More on oil:
Why oil may never be cheap again
Marc Faber: The three commodity investments you must buy now
Top energy firm: Oil will be the world's primary fuel for the next 25 years
View the original article here
Friday, December 17, 2010
Jim Rogers: Get out of the financial sector before it's too late
From Newsmax:
Investor guru Jim Rogers says life on the farm will bring far more riches in coming years than the trenches of Wall Street.
Rogers, a commodities evangelist for more than a decade, has tweaked his pitch, saying the producers of the world — whether individuals, companies, or countries — will become the new growth sector.
In short, Rogers told the Reuters 2011 Investment Outlook Summit in New York, being productive, saving the fruits of your labor, and owning hard assets hold the keys to a bright future.
"All these people who got MBAs made a mistake. The city of London and Wall Street are not going to be great places to be in the next two or three decades. It's going to be the people who...
Read full article...
More from Jim Rogers:
Jim Rogers rips into Ben Bernanke at Oxford
Jim Rogers: The only assets you must own today
Jim Rogers: Paul Krugman is an idiot... Obama barely knows anything about the world
View the original article here
Investor guru Jim Rogers says life on the farm will bring far more riches in coming years than the trenches of Wall Street.
Rogers, a commodities evangelist for more than a decade, has tweaked his pitch, saying the producers of the world — whether individuals, companies, or countries — will become the new growth sector.
In short, Rogers told the Reuters 2011 Investment Outlook Summit in New York, being productive, saving the fruits of your labor, and owning hard assets hold the keys to a bright future.
"All these people who got MBAs made a mistake. The city of London and Wall Street are not going to be great places to be in the next two or three decades. It's going to be the people who...
Read full article...
More from Jim Rogers:
Jim Rogers rips into Ben Bernanke at Oxford
Jim Rogers: The only assets you must own today
Jim Rogers: Paul Krugman is an idiot... Obama barely knows anything about the world
View the original article here
Thursday, December 16, 2010
Must-read interview with gold investment legend John Hathaway
From an interview in Casey's BIG GOLD with John Hathaway, Tocqueville Gold Fund:
When John Hathaway spoke at the Casey’s Gold and Resource Summit in October, many in the audience came away feeling like they were listening to Doug Casey, with his contrarian views, bold statements, and laying much of the blame for our current problems at the feet of government. Read what John, a seasoned investment pro and manager of the famously successful $1.4 billion Tocqueville Gold Fund, has to say about gold, precious metals stocks, and the future of the U.S. dollar.
Jeff Clark: John, give us your big-picture perspective on why you're investing in gold.
John Hathaway: We launched the Tocqueville Gold Fund (TGLDX) in 1998 when it was a very contrarian idea. I always like to say it was the "Rodney Dangerfield" of investments at the time because a lot of people laughed at us and we didn’t get much respect. It was essentially a very contrarian investment theme, and we did it at a time when the markets were going nuts for dot-com stocks, which we thought was absolute lunacy.
Our thesis is basically related to the lack of faith that institutions, investors, and citizens have in paper money. That shift in opinion has come in fits and starts but is the core reason gold has risen to the extent it has. And until you have a significant restoration in terms of confidence in paper money, gold should do very well.
Jeff: Some are calling gold a bubble.
John: Many people – I'd say most people – are...
Read full article...
More on gold:
There's a stealth trend developing in gold
Top commodity analyst: Gold to beat silver now
The long-awaited gold mania may be starting... in China
View the original article here
When John Hathaway spoke at the Casey’s Gold and Resource Summit in October, many in the audience came away feeling like they were listening to Doug Casey, with his contrarian views, bold statements, and laying much of the blame for our current problems at the feet of government. Read what John, a seasoned investment pro and manager of the famously successful $1.4 billion Tocqueville Gold Fund, has to say about gold, precious metals stocks, and the future of the U.S. dollar.
Jeff Clark: John, give us your big-picture perspective on why you're investing in gold.
John Hathaway: We launched the Tocqueville Gold Fund (TGLDX) in 1998 when it was a very contrarian idea. I always like to say it was the "Rodney Dangerfield" of investments at the time because a lot of people laughed at us and we didn’t get much respect. It was essentially a very contrarian investment theme, and we did it at a time when the markets were going nuts for dot-com stocks, which we thought was absolute lunacy.
Our thesis is basically related to the lack of faith that institutions, investors, and citizens have in paper money. That shift in opinion has come in fits and starts but is the core reason gold has risen to the extent it has. And until you have a significant restoration in terms of confidence in paper money, gold should do very well.
Jeff: Some are calling gold a bubble.
John: Many people – I'd say most people – are...
Read full article...
More on gold:
There's a stealth trend developing in gold
Top commodity analyst: Gold to beat silver now
The long-awaited gold mania may be starting... in China
View the original article here
Monday, December 13, 2010
Five easy ways to become wealthier in 2011
From Buy Like Buffett:
According to the Federal Reserve, the wealth of Americans grew $1.2 trillion during the last quarter. The bulk of the rise in assets is attributable to the stock market with stocks increasing $939 billion and mutual fund shares gaining $378 billion. The biggest depressant was the real estate sector, which declined nearly $700 million.
In the face of all this positive economic news, do you feel any richer? Have the balances on your 401(k), Roth IRA, and stock portfolio increased? Have you increased the balances in your bank account and reduced the balances on your credit card accounts?
If so, this is the perfect time to outline your plans for 2011. Here is a checklist to follow so that you can make sure that 2011 is better than 2010...
Read full article...
More on saving money:
Ten easy ways to lower your cost of living
Five simple steps to improve your finances
Six big mistakes that could ruin your financial future
View the original article here
According to the Federal Reserve, the wealth of Americans grew $1.2 trillion during the last quarter. The bulk of the rise in assets is attributable to the stock market with stocks increasing $939 billion and mutual fund shares gaining $378 billion. The biggest depressant was the real estate sector, which declined nearly $700 million.
In the face of all this positive economic news, do you feel any richer? Have the balances on your 401(k), Roth IRA, and stock portfolio increased? Have you increased the balances in your bank account and reduced the balances on your credit card accounts?
If so, this is the perfect time to outline your plans for 2011. Here is a checklist to follow so that you can make sure that 2011 is better than 2010...
Read full article...
More on saving money:
Ten easy ways to lower your cost of living
Five simple steps to improve your finances
Six big mistakes that could ruin your financial future
View the original article here
Wednesday, December 8, 2010
Three ideas for safely buying stocks today
From The Reformed Broker:
Lots of people feel as though they're under-invested after this week. The anxiety is palpable. They've digested the latest economic data and have come around to the fact that they should probably be in some stocks. The cascading bond market certainly offers a bit of reinforcement in that regard with yields on the the 10-year Treasury ripping back above 3%. And rising.
The sideline dwellers must now confront their fears of top ticking the stock market. We've had an incredible run in equities for 20 months now and valuations are beginning to price in a recovery that is more robust than what many economists are forecasting. The under-invested are caught between the rock of misallocation and the hard place of not wanting to chase.
But never fear - I'm in the solutions business and I'm going to let you in on a few tricks you can use when you find yourself not quite long enough...
Read full article...
More on stocks:
Top research firm: Don't get too bearish now
Warren Buffett is dumping these long-held stocks
BREAKOUT: These stocks are about to make new yearly highs
View the original article here
Lots of people feel as though they're under-invested after this week. The anxiety is palpable. They've digested the latest economic data and have come around to the fact that they should probably be in some stocks. The cascading bond market certainly offers a bit of reinforcement in that regard with yields on the the 10-year Treasury ripping back above 3%. And rising.
The sideline dwellers must now confront their fears of top ticking the stock market. We've had an incredible run in equities for 20 months now and valuations are beginning to price in a recovery that is more robust than what many economists are forecasting. The under-invested are caught between the rock of misallocation and the hard place of not wanting to chase.
But never fear - I'm in the solutions business and I'm going to let you in on a few tricks you can use when you find yourself not quite long enough...
Read full article...
More on stocks:
Top research firm: Don't get too bearish now
Warren Buffett is dumping these long-held stocks
BREAKOUT: These stocks are about to make new yearly highs
View the original article here
Tuesday, December 7, 2010
Top currrency hedge fund: Euro crash could resume TOMORROW
From Zero Hedge:
John Taylor appeared earlier on the 2011 Reuters Investment Outlook Summit, and among various interesting things (namely another call for EUR-USD parity, and that he would "love to be owning gold right here"), he said that the U.S. is imminently headed for another recession, a development that will boost the USD and weigh on commodities.
Yet what is more interesting is that in his latest "Chairman's View", Taylor put down a specific date for the end of the recent recovery in European currencies: the date is tomorrow, the day of the Irish Budget decision, and also the day when Europe may see a coordinated effort for a bank run. Taylor also notes that...
Read full article...
More on the euro crisis:
Top currency hedge fund: Nothing can stop the euro crash
Forget Greece and Ireland, this is the only country that matters
This simple chart shows why the euro bailout is guaranteed to fail
View the original article here
John Taylor appeared earlier on the 2011 Reuters Investment Outlook Summit, and among various interesting things (namely another call for EUR-USD parity, and that he would "love to be owning gold right here"), he said that the U.S. is imminently headed for another recession, a development that will boost the USD and weigh on commodities.
Yet what is more interesting is that in his latest "Chairman's View", Taylor put down a specific date for the end of the recent recovery in European currencies: the date is tomorrow, the day of the Irish Budget decision, and also the day when Europe may see a coordinated effort for a bank run. Taylor also notes that...
Read full article...
More on the euro crisis:
Top currency hedge fund: Nothing can stop the euro crash
Forget Greece and Ireland, this is the only country that matters
This simple chart shows why the euro bailout is guaranteed to fail
View the original article here
Why oil may never be cheap again
From Frank Holmes of U.S. Global Investors:
Lost in the shuffle of the European debt woes, a second round of quantitative easing and gold's record run has been the resurgence in global demand for oil. Global oil demand is strong; in fact, it has never been stronger. Oil demand during the third quarter of this year was up 3.7%, the fourth-straight quarter of growth.
Who's behind this increase in demand? Emerging markets.
You can see from the chart that global oil consumption has bounced well off early 2009 lows and now...
Read full article...
More on oil:
Rick Rule: Oil supply outlook "positively scary"
Professional bets on $100 oil are skyrocketing
World's biggest supertanker operator is seeing a huge rebound in Chinese oil demand
View the original article here
Lost in the shuffle of the European debt woes, a second round of quantitative easing and gold's record run has been the resurgence in global demand for oil. Global oil demand is strong; in fact, it has never been stronger. Oil demand during the third quarter of this year was up 3.7%, the fourth-straight quarter of growth.
Who's behind this increase in demand? Emerging markets.
You can see from the chart that global oil consumption has bounced well off early 2009 lows and now...
Read full article...
More on oil:
Rick Rule: Oil supply outlook "positively scary"
Professional bets on $100 oil are skyrocketing
World's biggest supertanker operator is seeing a huge rebound in Chinese oil demand
View the original article here
Monday, December 6, 2010
Fed "quarantines" $110 billion in bungled U.S. dollars
From The Daily Crux:
Counter to what we've been hearing about Ben Bernanke firing up the printing presses, the Fed has actually stopped them.
Counter to what we've been hearing about Ben Bernanke firing up the printing presses, the Fed has actually stopped them.
New $100 bills were being touted as more secure, but the printing presses can't handle the technology. So more than 1 billion unusable bills will have to be destroyed.
This equals about 10% of of the entire U.S. cash supply…
Read full article...
More government stupidity:
END GAME: The Federal Reserve is now bailing out the world
Must-read: The airport security story you won't see anywhere else
Today's entertainment: The Fed's "Quantitative Easing" is finally explained
Saturday, December 4, 2010
How to find stocks with a "margin of safety"
From Buy Like Buffett:
Value investors like Benjamin Graham and David Dodd invented the phrase "margin of safety." Those value investing masters classified a stock's margin of safety as the difference between a stock's market price and its true value.
Value investors like Warren Buffett love to buy stocks that are selling at a discount to their true value. This is number nine on our list of the 10 Things To Look For When Buying A Stock.
How do you find a stock's true value?
A stock's true value is based on a number of factors including current earnings, cash flows, earnings potential, P/E ratio, and...
Read full article...
More on value investing:
Three methods for finding some of the world's best value stocks
Warren Buffett's favorite measure says stocks are expensive today
Must read: Legendary investor Klarman makes the most bizarre market analogy ever
View the original article here
Value investors like Benjamin Graham and David Dodd invented the phrase "margin of safety." Those value investing masters classified a stock's margin of safety as the difference between a stock's market price and its true value.
Value investors like Warren Buffett love to buy stocks that are selling at a discount to their true value. This is number nine on our list of the 10 Things To Look For When Buying A Stock.
How do you find a stock's true value?
A stock's true value is based on a number of factors including current earnings, cash flows, earnings potential, P/E ratio, and...
Read full article...
More on value investing:
Three methods for finding some of the world's best value stocks
Warren Buffett's favorite measure says stocks are expensive today
Must read: Legendary investor Klarman makes the most bizarre market analogy ever
View the original article here
Friday, December 3, 2010
The "perfect storm" in commodities continues
From Bloomberg:
Commodities headed for the biggest weekly gain since October 2009 as global shortfalls of cotton and wheat drove agriculture prices higher.
The Thomson Reuters/Jefferies CRB Index of 19 raw materials rose 3.25, or 1%, to 315.35 at 1:31 p.m. New York time. A close at that level would mark a weekly gain of 4.7%.
Cotton was poised for the biggest weekly jump in 39 years after India put limits on exports. Heavy rain is eroding the quality of Australian wheat after a drought cut Russian grain output. The dollar tumbled against major currencies, boosting the investment appeal of energy, metals and crops. Crude oil rose to a 25-month high, and gold topped $1,400 an ounce.
"The perfect storm in commodities continues another week," said Fain Shaffer, the president of Infinity Trading Corp., a commodity brokerage in Medford, Oregon. "Between weather problems, financial problems and China saying they want to buy gold, all these markets are up pretty good today."
To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.
More on commodities:
The stars continue to align for dramatically higher coal prices
Porter Stansberry: Food crisis looming... prices set to skyrocket...
GOLD CRAZY: New wave of Chinese money is set to slam the gold market
View the original article here
Commodities headed for the biggest weekly gain since October 2009 as global shortfalls of cotton and wheat drove agriculture prices higher.
The Thomson Reuters/Jefferies CRB Index of 19 raw materials rose 3.25, or 1%, to 315.35 at 1:31 p.m. New York time. A close at that level would mark a weekly gain of 4.7%.
Cotton was poised for the biggest weekly jump in 39 years after India put limits on exports. Heavy rain is eroding the quality of Australian wheat after a drought cut Russian grain output. The dollar tumbled against major currencies, boosting the investment appeal of energy, metals and crops. Crude oil rose to a 25-month high, and gold topped $1,400 an ounce.
"The perfect storm in commodities continues another week," said Fain Shaffer, the president of Infinity Trading Corp., a commodity brokerage in Medford, Oregon. "Between weather problems, financial problems and China saying they want to buy gold, all these markets are up pretty good today."
To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.
More on commodities:
The stars continue to align for dramatically higher coal prices
Porter Stansberry: Food crisis looming... prices set to skyrocket...
GOLD CRAZY: New wave of Chinese money is set to slam the gold market
View the original article here
Wednesday, December 1, 2010
Superinvestor Mark Mobius: "Consumers are back"
From Bloomberg: Rising confidence among U.S. consumers will help drive global economic growth and spur a "secular bull market" in developing-nation stocks, investor Mark Mobius said.
"The consumers are back," Mobius, who oversees about $34 billion as executive chairman of Templeton Emerging Markets Group, said in a phone interview today. "There's still an incredible amount of economic activity taking place, more in emerging markets, but it's also true in the U.S."
The Conference Board's index of U.S. consumer sentiment rose in November to the highest level in five months, while figures from ADP Employer Services today showed companies boosted payrolls by more than economists' estimated ahead of the holiday-shopping season. A Brazilian gauge of consumer confidence jumped to a record last month. Companies that sell discretionary consumer goods have led gains in global equities this year, according to MSCI Inc. indexes.
"The airports are packed with people traveling and shopping," said Mobius, who spoke after reaching Hong Kong from Dubai. "You see that everywhere you travel."
The Conference Board's sentiment index increased to 54.1, exceeding the median forecast of 53 in a Bloomberg News survey, figures from the New York-based research group showed yesterday. Companies in the U.S. boosted payrolls by 93,000 in November, the most since November 2007 and propelled by increased hiring at small businesses, ADP Employer Services said today.
In Brazil, the Getulio Vargas Foundation's seasonally adjusted consumer-confidence index rose to 125.4 in November, highest since at least 2005, data compiled by Bloomberg show.
The MSCI All-Country World Consumer Discretionary Index has climbed 21 percent this year, compared with a 5.2 percent gain in MSCI's gauge of global shares.
"I never believed in a double dip" recession, Mobius said. "It's just not in the cards."
To contact the reporter on this story: Michael Patterson in London at mpatterson10@bloomberg.net.
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net.
More from Mark Mobius:
Mark Mobius: The China bull market is back
Mark Mobius: One of the best emerging markets to buy today
Legendary investor Mark Mobius: Buy commodities... and buy 'em big
View the original article here
"The consumers are back," Mobius, who oversees about $34 billion as executive chairman of Templeton Emerging Markets Group, said in a phone interview today. "There's still an incredible amount of economic activity taking place, more in emerging markets, but it's also true in the U.S."
The Conference Board's index of U.S. consumer sentiment rose in November to the highest level in five months, while figures from ADP Employer Services today showed companies boosted payrolls by more than economists' estimated ahead of the holiday-shopping season. A Brazilian gauge of consumer confidence jumped to a record last month. Companies that sell discretionary consumer goods have led gains in global equities this year, according to MSCI Inc. indexes.
"The airports are packed with people traveling and shopping," said Mobius, who spoke after reaching Hong Kong from Dubai. "You see that everywhere you travel."
The Conference Board's sentiment index increased to 54.1, exceeding the median forecast of 53 in a Bloomberg News survey, figures from the New York-based research group showed yesterday. Companies in the U.S. boosted payrolls by 93,000 in November, the most since November 2007 and propelled by increased hiring at small businesses, ADP Employer Services said today.
In Brazil, the Getulio Vargas Foundation's seasonally adjusted consumer-confidence index rose to 125.4 in November, highest since at least 2005, data compiled by Bloomberg show.
The MSCI All-Country World Consumer Discretionary Index has climbed 21 percent this year, compared with a 5.2 percent gain in MSCI's gauge of global shares.
"I never believed in a double dip" recession, Mobius said. "It's just not in the cards."
To contact the reporter on this story: Michael Patterson in London at mpatterson10@bloomberg.net.
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net.
More from Mark Mobius:
Mark Mobius: The China bull market is back
Mark Mobius: One of the best emerging markets to buy today
Legendary investor Mark Mobius: Buy commodities... and buy 'em big
View the original article here
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