Archive

Posts Tagged ‘president-obama’

Werner Enterprises, Inc. (NASDAQ:WERN): $100K Jobs That Nobody Wants

November 19th, 2012

President Obama’s recent re-election campaign was, in no small part, built upon the comeback of the auto industry. The hiring has been brisk, and not just at the Big 3 manufacturers — it’s been even more pronounced at the supporting and surrounding businesses. Data from the Read more…

Uncategorized

Fiscal Cliff Negotiations: A Process Sure to Enrage All Americans

November 12th, 2012

Last week’s election results were largely as expected. The President won reelection, Democrats still have a majority in the Senate, and Republicans control the House of Representatives. The only surprise was the brutally negative reaction of Read more…

Economy

Will President Barack Obama Really Stand Up To China?

November 9th, 2012

Keith Fitz-Gerald: While U.S. Presidential headlines dominate the airwaves this week, there is another “election” under way thousands of miles from our own shores that may be even more important when it comes to your money. Read more…

Economy, Government, Markets, World News

Here’s What President Barack Obama’s Win Means For Your Money (YUM, KO, MCD, MRK, BBY, CEO)

November 8th, 2012

Keith Fitz-Gerald: Bitter, negative, expensive…I am hard pressed to find any positive adjectives describing this year’s presidential campaign.  Read more…

Economy, Government

Benghazi Attacks: U.S. Special Operations Teams On Standby For Libya Revenge Strike

October 16th, 2012

It looks like it may be time to wag the dog a bit as President Obama is losing traction in national polls and the administration has taken a significant amount of heat for mid-east policy failures that recently culminated in the death of an American ambassador. Read more…

Government, World News

If U.S. Troops Fight WWIII, Who Fights The Coming American Civil War?

September 27th, 2012

U.S. troops available for deployment to fight a full-blown war is 1.4 million, with an additional 2.1 million, if all of NATO were to oblige. Read more…

Currency, Government, Markets, World News

WWIII Within Days; Food-For-Guns Program Next, Says Informant

September 20th, 2012

Dominique de Kevelioc de Bailleul: War drums beat in the Middle East and, now, the drums suddenly beat strongly between two Asian mights.  That, on top of a global financial system on the brink of entering the slide to hyperinflation has many thoughtful analysts suggesting Read more…

China, Economy, Government, World News

Former State Dept. Veteran Drops Bombshell: WWIII Starts Sept. 25, 2012

September 18th, 2012

Dominique de Kevelioc de Bailleul: Speaking with Infowars’ Alex Jones, former Assistant Deputy Secretary of State Dr. Steve Pieczenik says Israel plans to attack Iran before the U.S. elections of Nov. 6., and, that an attack on Iran will assuredly kickoff WWIII, according to him. Read more…

Economy, Government, World News

Into The Meat Grinder: A “Market Meltdown The Likes Of Which We’ve Never Seen Is Upon Us”

August 28th, 2012

Mac Slavo: America is about to be put through the meat grinder and despite what President Obama or Governor Mitt Romney say they will do to fix the fundamental issues facing our country, the end result is inevitable. Read more…

Economy, Government

Gold Soaring In Comparison To Stocks

June 10th, 2011

A seminal speech was delivered a few weeks ago by President Obama at the State Department, in it he outlined a radical switch of policy in the Middle East.  Such an error in judgement was made once before when Jimmy Carter suggested that we democratize Iran.  What occurred was  destruction of an ally in the Shah and replacing him with a purported force for democratization in the persons of the Ayatollah and the Mullahs.

Just look at what we got stuck with.  Our present course in the Middle East may be a repetition of this error.   There is no guarantee that what may be thought to be democratic for Westerners, may be counterproductive in a completely different arena.

Far from there being an Arab Renaissance, we may be witnessing the formation of a Islamist Spring, followed by an Arab Winter.  Hope may rise eternal that American style democracy can emerge from a fundamentalist, theocratic mindset.  This may be a thin blanket for a cold night.  Anti American and Israeli sentiments may not be far from the surface of what is though of as a movement toward Jeffersonian Style Democracy.   Suffice it to say, The U.S. may be imposing Western beliefs on Middle Eastern customs and traditions established for over a thousand years.

Such developments may well constitute exactly the opposite of what our strategists are planning.  Black swan anyone?  Turbulence, instability and uncertainty have usually been a prescription for precious metals and natural resources as a safe haven.

From where is all the money coming to pay for all these planned excursions?  Can an already troubled financial system handle additional burdens that threaten to break the camel’s back?

We read about debt limit, budgetary woes, foreclosures, unemployment, Eurozone debt crisis, the possible loss of a AAA credit rating and a myriad of domestic travails.  Shouldn’t we first repair our own home first?  Sound money and a sound fiscal body is vital for our national health.

Interestingly, the precious metals and mining indices are moving higher, while the equity markets are declining showing relative strength breakouts.  The Dow-Gold Ratio has shown a major breakdown through the 8 to 1 ratio.  We are seeing an eerily similar setup to the Great Depression and the 1970’s where paper money such as equities are seen as less valuable than hard assets.  Investors are seeking protection in precious metals due to this dollar devaluation and disappointing economic recovery.  Despite bailouts, record low interest rates and quantitative easing the Dow-Gold ratio shows that the economic recovery has been ineffective and inflationary.

Gold and Silver are showing signs of fortitude during these equity sell offs maintaing its status as an authentic safe haven .  A significant continuation in trend may be beginning where precious metals may move higher while equities continue to correct as investor look to hold real money over paper.  This breakdown in the Dow Gold Ratio signifies major inflation and economic weakness ahead.

The S&P is showing negative divergences between price and momentum an indication of further price decline.  The absence of relief rallies over five weeks in equities and the outperformance of gold indicates investors are interested to hold hard assets going into the conclusion of QE2.  All eyes are on the financial markets as QE2 expires.  Investors are exiting the dollar as well as equities and moving into hard assets.  The market may be signaling future accommodative measures especially if the equity market continues declining.

I invite you to follow my favorite sectors (precious metals, uranium and rare earths) with me on a daily basis with my technical intelligence reports and intra day chart videos by clicking here.

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Gold Soaring In Comparison To Stocks

Commodities

When Gas Prices Lead to Cutbacks

June 8th, 2011

Stocks fell again yesterday, down another 20 points or so. That’s six for six sessions in the red. And they’re down again, if only modestly, this morning. Gold is down too, off 8 bucks and change over the past 24 hours. But oil…oil is up big after, as one of the papers announced, “OPEC talks broke down in acrimony on Wednesday after Saudi Arabia failed to convince the cartel to lift production, sparking a rebound in global oil prices.” A “larger than forecast” drop in US inventories also helped push the price higher.

So let’s see… That’s a flat line for oil output, less in the reserve tank, increased global demand and more and more freshly-inked bills chasing the stuff. Seems only natural the price would eventually resume its skyward trajectory.

As you would expect, all these factors are colluding to hit American motorists rather hard this driving season. According to a new Harris Poll, 51% of Americans say they’ve cut back on other products and/or services in order to cope with higher prices at the pump. We probably didn’t need a poll to tell us that higher prices mean tougher decisions, of course, but it is interesting to see where the family budget is taking the biggest knock.

According to the poll, as cited in a riveting issue of Tire Review, “28% have cut back on dining out while 24% have cut back on groceries, 18% say they have cut back on entertainment, 11% have reduced driving, and 10% have cut back on clothing purchases.”

Of course, if you’re cruising to the local Dean & Deluca in your pimped-out Maybach, you’re probably not too worried about burning a few hundred extra dollars per week or per month on fuel. But if, as is the case for millions of workaday Americans, you’re struggling to keep/find work and living on a restricted budget, every dollar counts.

“Those with lower household income are more impacted,” the article continues, “with 65% of those with a household income of less than $35,000 a year having cut back on products or services because of higher gas prices compared to 38% of those who have household income of $100,000 or more.”

We wonder what this means for the government’s growing fleet of limousines that Eric brought to our attention yesterday. Here’s the chart again, in case you missed it the first time around:

The Number of Limousines Owned by the Federal Government

And we wonder, too, what effect this will have on “The Recovery.” Our guess is it will have no effect on it…because there was never a recovery to begin with. It was a sham…a prestidigitation…and hoax, wrapped in a con, wrapped in a scheme. Of course, you wouldn’t know that if you got your information from Whitehouse.gov. An article that appeared almost exactly a year ago (June 17, 2010) on that site reads (try not to laugh and/or cry):

“With tens of thousands of projects funded and millions of Americans on the job today, it’s hard to believe that it’s only been 16 months since President Obama signed the American Recovery and Reinvestment Act. And with so many jobs saved and created already, you might think that the Recovery Act’s greatest impact is behind us. But it’s not.”

Well, at least they were right about the last part: the “American Recovery and Reinvestment Act,” will probably do much more damage before it’s replaced by some other, equally moronic plan by the Feds to “do something.”

Joel Bowman
for The Daily Reckoning

When Gas Prices Lead to Cutbacks originally appeared in the Daily Reckoning. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas.

Read more here:
When Gas Prices Lead to Cutbacks




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

The 5 Best-Performing ETFs of 2011

May 17th, 2011

The 5 Best-Performing ETFs of 2011

Despite the recent bearish effort, the stock market's still up 6% for the year. Some sectors and groups, however, are up more than others. Such outperformance begs the question: are these leading industries already over-baked, or is their current leadership an omen of what's to come?

Let's first identify the top-performing exchange-traded funds (ETFs) for the year so far, and tackle the tougher questions after that.

2011's year-to-date ETF winners
Just to clarify, leveraged funds have been removed this list of top performers, since they're more for speculators and less for buy-and-hold investors.

1. B2B Internet HOLDRs (NYSE: BHH): Of all the names that made the cut, this one may also be the most surprising. 'Business-to-business' (a nickname for the corporate-level marketplace of goods, supplies, and services) stocks like Ariba (Nasdaq: ARBA) and Internet Capital Group (Nasdaq: ICGE) – the only two names the fund holds — never really hit their enthusiasm stride again after the 2001/2002 recession. But, something is clearly lighting a fire now.

Note that owning the B2B Internet HOLDRs is essentially a play on Ariba, which makes up 90% of the fund's allocation. That may not be a bad thing though, as the decision to convert its platform from software-based to cloud-based is one stop closer to the company's goal of becoming a “Facebook for business.” With a forward-looking price-to-earnings ratio of 30.3 it's a little heavy in terms of valuation, but if last quarter's 41% increase in revenue is any indication, the company's on the right track.

2. United States Brent Oil Fund (NYSE: BNO): Why has this oil fund performed better than, say the U.S. Oil Fund (NYSE: USO)? That's because BNO is based on Brent futures, which are more popular in Europe and Asia, and more sensitive to the turmoil in the Middle East. USO is based on West Texas Intermediate oil futures, which have actually seen a bit of a delivery glut of late.

Either way, both funds are higher because oil prices have been rising, until recently. And, when oil swings, it tends to swing big. The Brent crude fund is down more than 12% for the month so far, with no help in sight.

3. Rydex S&P MidCap 400 Pure Growth (NYSE: RFG): This is nothing new — this cap/style group has been quietly leading the charge since the March-2009 bottom. Mid-sized companies have found a bit of a sweet spot in a moderate-growth environment. They're more nimble than the slower-moving large caps that aren't finding easy money in any longer, but better-funded and better-shielded than small caps. As long as economic mediocrity reigns, so too should the mid caps.

ETF, Uncategorized

The 5 Best-Performing ETFs of 2011

May 17th, 2011

The 5 Best-Performing ETFs of 2011

Despite the recent bearish effort, the stock market's still up 6% for the year. Some sectors and groups, however, are up more than others. Such outperformance begs the question: are these leading industries already over-baked, or is their current leadership an omen of what's to come?

Let's first identify the top-performing exchange-traded funds (ETFs) for the year so far, and tackle the tougher questions after that.

2011's year-to-date ETF winners
Just to clarify, leveraged funds have been removed this list of top performers, since they're more for speculators and less for buy-and-hold investors.

1. B2B Internet HOLDRs (NYSE: BHH): Of all the names that made the cut, this one may also be the most surprising. 'Business-to-business' (a nickname for the corporate-level marketplace of goods, supplies, and services) stocks like Ariba (Nasdaq: ARBA) and Internet Capital Group (Nasdaq: ICGE) – the only two names the fund holds — never really hit their enthusiasm stride again after the 2001/2002 recession. But, something is clearly lighting a fire now.

Note that owning the B2B Internet HOLDRs is essentially a play on Ariba, which makes up 90% of the fund's allocation. That may not be a bad thing though, as the decision to convert its platform from software-based to cloud-based is one stop closer to the company's goal of becoming a “Facebook for business.” With a forward-looking price-to-earnings ratio of 30.3 it's a little heavy in terms of valuation, but if last quarter's 41% increase in revenue is any indication, the company's on the right track.

2. United States Brent Oil Fund (NYSE: BNO): Why has this oil fund performed better than, say the U.S. Oil Fund (NYSE: USO)? That's because BNO is based on Brent futures, which are more popular in Europe and Asia, and more sensitive to the turmoil in the Middle East. USO is based on West Texas Intermediate oil futures, which have actually seen a bit of a delivery glut of late.

Either way, both funds are higher because oil prices have been rising, until recently. And, when oil swings, it tends to swing big. The Brent crude fund is down more than 12% for the month so far, with no help in sight.

3. Rydex S&P MidCap 400 Pure Growth (NYSE: RFG): This is nothing new — this cap/style group has been quietly leading the charge since the March-2009 bottom. Mid-sized companies have found a bit of a sweet spot in a moderate-growth environment. They're more nimble than the slower-moving large caps that aren't finding easy money in any longer, but better-funded and better-shielded than small caps. As long as economic mediocrity reigns, so too should the mid caps.

ETF, Uncategorized

An Insider’s Take on the Galleon Verdict

May 15th, 2011

http://www.minyanville.com/businessmarkets/articles/todd-harrison-stock-market-stocks-insider/5/14/2011/id/34542?utm_campaign=Newsletter&utm_medium=Email+Alert&utm_source=20110514

We couldn’t agree more with this statement from the Minyanville article above:

That’s (Galleon verdict) a positive progression for the small investor, but it’s far from a regulatory panacea; we have a lot of work to do if we’re to truly even the playing field, including but not limited to policing the policymakers who actually grow the grass.   This is no longer your father’s stock market. It, in many ways, remains an interconnected and dangerous mess.Its why we brought SmartStops to the marketplace .  The market has changed in how it operates.  Ensuring you are managing risk is more important than ever.   As  President Obama said in his inaguration address: 

 “Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched.  But this crisis has reminded us that without a watchful eye, the market can spin out of control. The nation cannot prosper long when it favors only the prosperous.”
 
We, at SmartStops, hope our service can be your portfolio’s watchful eye. 
 
 

Read more here:
An Insider’s Take on the Galleon Verdict




HERE IS YOUR FOOTER

Uncategorized

The Case for Cash: Why a 0% Yield Is Sometimes Your Best Bet

May 9th, 2011

What a wild week it was! Last week, the US bumped off Osama bin Laden. Silver collapsed. Unemployment looked terrible on Thursday…and better on Friday.

Stocks looked like they were in trouble…but then seemed to stabilize by week’s end.

And President Obama suddenly became The Decider.

What do you make of it? Or, a more practical question, if you’ve got money to invest, what do you do with it?

On Friday, gold closed at $1,491 – about 5% below its all-time high. Buy it now? Or commodities, when they too seem to be coming off record highs? Oil was down 10% last week. Buy stocks – when all the evidence shows that they are vulnerable to a big downswing…and will probably produce sub-par returns for many years?

What’s the alternative? Hold cash!

But wait. Who wants to hold dollars (or other paper currencies, for that matter) when inflation rates are rising…and the dollar is currently losing ground at the rate of more than 7% a year (according to MIT’s Billion Prices Project)?

A tough situation for investors. Damned if you do. Damned if you don’t.

Here’s our old friend Merryn Somerset-Webb, editor of MoneyWeek, on the subject:

Why you should hold cash

A long-term property bear told me this week that he was going to buy a flat. Why? He can’t bring himself to keep his money in cash when savings rates are 3%, inflation is 5% and income tax is 40%. But he can’t bring himself to buy much else either: most equities look overvalued; commodities could easily be on the edge of another cyclical peak; and there is only so much gold a man can hold. But his money “has to go somewhere”. And at least property offers some kind of yield.

I can see his points – holding cash in an era of negative real interest rates can feel painful. But what if it’s the least bad option? Dylan Grice of Société Générale points out that while it’s true cash “generally has a zero expected real return”, there is at least a “near-certainty around that expected return”. Mostly if you hold cash you know you won’t make money, but you won’t lose much either.

That’s not usually good enough. Most of the time, risk assets return more than 0%. So it makes sense to be biased towards equities, bonds, commodities, houses and wine instead of cash. But there are also occasions when risk assets are unlikely to return more than zero – times when the risk of losing money in non-cash assets is so high that it makes more sense to aim for a zero return than a real return. Now, says Grice, “might just be one of those times”.

Merryn is probably right. At least, that’s what we concluded at the Family Office too. The Bonner family holds an uncomfortably large amount of its portfolio in cash.

It is uncomfortable because we believe cash will soon be the very worst place to keep your money.

Bill Bonner
for The Daily Reckoning

The Case for Cash: Why a 0% Yield Is Sometimes Your Best Bet originally appeared in the Daily Reckoning. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas. Bill Bonner, the founder of the the Daily Reckoning released his latest book Dice Have No Memory: Big Bets & Bad Economics From Paris to the Pampas in April 2011.

Read more here:
The Case for Cash: Why a 0% Yield Is Sometimes Your Best Bet




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Commodities, Uncategorized

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