Tuesday, June 9, 2009

High Risk In Entering Equities -Marc Faber

Marc Faber was interviewed this morning by the Asian TV CNBC-TV18. Marc Faber sees a high risk in entering equities now and is quoting as saying..
“This is not a good time to enter equities, except for traders.”
Marc Faber also believes that commodities are also about to top out. This comes at a time when many resource stocks have more than doubled from the November and March lows and some have even tripled. Thus, Dr. Faber believes that it is not an very attractive entry point to buy commodities and commodity-related stocks. (more)

Is The Correction In Gold & Silver Over? Is This Just A Beginning?

This week we have seen precious metals and mining stocks peak, just as I've indicated in the previous Premium Update. In the summary of last week's update I wrote that "Although prices of gold, silver and mining stocks are reaching their own resistance levels, such a correction will most likely be caused by some kind of catalyst, probably a strong move in the U.S. Dollar, or in the general stock market". It turned out that the catalyst was in fact the U.S. Dollar, however I will get back to this issue later in this update. (more)

Next foreclosure wave building with defaults on fixed-rate loans

Back in 2000, long before subprime lending to credit-risky homebuyers overheated the housing market, Rosemary Murphy used her financial good standing to pay for a house the old-fashioned way.
There was no funny financing or gimmicks. No adjustable rates.
Safely employed by the Clark County School District, she secured a traditional, 30-year, fixed-rate mortgage.
She’s now in trouble. And she’s a face of the next wave of foreclosures: homeowners who thought they were doing everything right but have still been overrun by the recession. (more)

U.S. Home Prices May Fall for Years, Shiller Says

June 8 (Bloomberg) -- U.S. housing prices are in the midst of a decline that may last for years, according to Robert J. Shiller, a finance professor at Yale University.

Shiller, who helped create home-price indexes bearing his name, wrote in a New York Times story yesterday that declines in real estate tend to be relatively long-lasting. As an example, he mentioned land prices in Japan’s major cities, which fell for 15 straight years after a 1980s housing bubble burst.

The CHART OF THE DAY shows what happened in Japan, based on data compiled by the country’s Real Estate Institute. Prices in the Tokyo area and in five other cities -- Kobe, Kyoto, Nagoya, Osaka and Yokohama -- sank 76 percent from 1990 through 2005. (more)

Peter Schiff, "On the Road to Argentina"

Fed Inspector General claims to have no knowledge of where 9 trillion was loaned..

TOP 12 Indicators the Economy is Bad

12. CEO’s are now playing miniature golf.
11. I got a pre-declined credit card in the mail.
10. I went to buy a toaster oven and they gave me a bank.
9. Hotwheels and Matchbox car companies are now trading higher than GM in the stock market.
8. Obama met with small businesses - GE, Pfizer, Chrysler, Citigroup and GM, to discuss the Stimulus Package.
7. McDonalds is selling the 1/4 ouncer.
6. People in Beverly Hills fired their nannies and are learning their children’s names.
5. The most highly-paid job is now jury duty.
4. People in Africa are donating money to Americans. Mothers in Ethiopia are telling their kids, “finish your plate; do you know how many kids are starving inAmerica?”
3. Motel Six won’t leave the lights on.
2. The Mafia is laying off judges.

DRUMROLL please, and the number one indicator of all.
1. If the bank returns your check marked as “insufficient funds,” you have to call them and ask if they meant you or them.