Thursday, January 10, 2013

This Is About To Rock The Financial World /
Today the man that has been meeting for the last two years with key foreign governments and sovereign wealth funds told King World News that many of these entities have “…reached the boiling point where they are really going to be unwilling to grow their reserves (of US Treasuries).”  He also warned, “I think that is really going to rock the financial world at some point in the near future.”

This is the first of two incredibly powerful written interviews that will be released which reveals what is actually taking place behind the scenes with foreign governments and sovereign wealth funds, and how this will impact the financial world and the gold market.

Eric King:  “Kevin, I know you’ve been communicating with many of the sovereign wealth funds overseas.  What are you hearing from them?”

Sprott Inc. President Bambrough:  “The burning question that I always have, I’m amazed at their ongoing willingness to continue to accumulate, and hold, such large amounts of US denominated bonds.  It’s been my view that they are basically playing a Ponzi scheme.

I’ve had that confirmed when I’ve had long discussion with different sovereign wealth funds and different government agencies around the world.  They’ve been willing to play this game, but more and more now, as their domestic economies have grown and the US portion of their exports becomes smaller, and with the amount of T-Bill that they have (already) accumulated, I believe they’ve reached the boiling point where they are really going to be unwilling to grow their reserves (of US Treasuries).

Just the process of not growing their reserves is going to be very disruptive.  If they are not willing to accumulate more T-Bills, this is going to force the trade deficit closed.  I think that is really going to rock the financial world at some point in the near future….

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Why Wealth Destruction Will Be Different This Time vs The 70s

from KingWorldNews:
Today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News. Fitzwilson, who is founder of The Portola Group, has an absolutely fascinating and incredibly important 45-year chart, which is a spectacular illustration of why gold and silver are in bull markets. Fitzwilson also discusses how this wealth destruction cycle will be uniquely different from the 70s, and multiple ways investors can protect themselves.

Below is a chart of the Trade Weighted Dollar Index. The Index was created in 1973 by J.P. Morgan. The Index is heavily weighted by the Euro (almost 60%). Roughly 77% of the Index is currently comprised of European currencies with the Yen (about 14%), the Canadian Dollar (about 9%) making up the rest. The Index was only changed once, and that was due to the introduction of the Euro.

As you can see from the chart below, the period from 1977 to 1980 was a rough one for the world’s reserve currency. Some of us were concerned about a Kondratieff Wave collapse in the mid-to-late 70s. The precursors for a collapse seemed to be there, including a declining U.S. Dollar and Depression-like economy. Prices and interest rates were going through the roof. Sections of the U.S. were in depression territory. The Mid-West was called the “Rust Belt”. Seattle had a billboard that said “Will The Last Person Leaving Town Please Turn Out The Lights?”. It was humorous, but it also reflected the severity of the times.

Robert Fitzwilson continues @

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Mcalvany weekly Commentary

January 9, 2013; The Rise of Global Ineptocracy

The Rise of Global Ineptocracy
-Financial crises to follow Fiscal crises
-Basel III equals re-leveraging the system
-New mandate for Fed: Not Stingy

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Financial Astrology: The Monster (MNST) Trade / By Karen Starich /

I have written about Monster (MNST) and the dilemma facing the ongoing concerns about it’s energy drinks ingredients, along with the dates for projected pullbacks as a result of those concerns last year.  Those projections have played out  The concerns that brought those declines are most likely not completely over since Neptune (financial greed and strange health symptoms) is moving to square again Venus in the IPO chart.  Neptune’s influence when in square to Venus in the 9th house often brings hard to resolve disputes, difficult  legal issues, and ‘slippery’ or dishonest approaches to business when applied to a corporations chart.  The Neptune transit can be a real downer for a stock as the influence can bring disturbing media attention that is difficult to overcome.

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Junior Oil Stock Reports Massive Increase in Revenue and Earnings

Junior Oil Stock Reports Massive Increase in Revenue and EarningsThe volatility in oil prices continues to be quite extreme. These volatile moves then tend to influence oil stocks, which obtain revenue from oil prices. Obviously, for the long-term investor in oil stocks, oil prices are one component, as is the quantity of reserves a firm has and the potential for developing further resources. One method for long-term investors is to look at relatively smaller and younger oil stocks that can grow over time.

Triangle Petroleum Corporation (NYSE/TPLM) is one of the more interesting oil stocks. It has both exploration and production operations within the Bakken Shale and Three Forks area of North Dakota and Montana. The company has over 86,000 net acres of land available, targeting shale formations in the Williston Basin. (Source: Triangle Petroleum Corporation, last accessed January 7, 2013.)

For the third quarter of 2013, which ended October 31, 2012, Triangle Petroleum reported sale of oil and natural gas of $10.4 million, up from only $3.4 million in the same quarter during the previous year. The firm also reported revenue of $12.5 million from pressure-pumping services, up from no revenue the same quarter in 2011. Total revenue was $23.1 million during the latest quarter, up from $3.4 million during the same quarter last year. Net income attributable to shareholders was a profit of $992,866, up from a loss of $2.1 million during the same quarter last year. (Source: “Triangle Petroleum Provides Operational Update, Financial Results of Third Quarter Fiscal 2013,” Triangle Petroleum Corporation, December 10, 2012, last accessed January 7, 2012.)

With the recent move upward in oil prices, this should benefit oil stocks, such as Triangle Petroleum. While one concern is certainly the potential for oil stocks to oversupply the domestic market, high international oil prices and the development of pipelines for transporting this commodity to much-needed areas should help keep oil prices strong.

While oil prices do play a significant role in the value of oil stocks, how Triangle Petroleum is able to manage its exploration and production is extremely crucial to its success. Obviously, since entering the North Dakota basin in 2010, the firm is on a growth path that is quite fast.
Triangle Petroleum Corp Chart
Chart courtesy of
Junior oil stocks can be quite volatile. After having a massive rally during the summer, the decline in oil prices during the fall weighed heavily on the stock. The stock recently moved above both its 50- and 200-day moving averages (MAs). The stock is now sitting at a resistance level—its 50% retracement from the recent move from October to mid-November.

With oil stocks that are quite new and inexperienced, it takes more than just oil prices to drive the share price higher. Seasoned investors want to see that the management teams of these oil stocks are able to efficiently execute their development plan and continue production without any major problems.

While oil prices are beyond the control of management of these oil stocks, there are many variables they can control, namely costs. I would like to see several quarters of sustained growth and strong execution for this company. Also, we have a lot of geopolitical risks that may influence oil prices later this year.

Both of these issues are crucial to a sustained move in the share price for Triangle Petroleum and many other oil stocks.

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Spectrum Brands Holdings, Inc. (NYSE: SPB)

 Spectrum Brands Holdings, Inc., together with its subsidiaries, operates as a consumer products company worldwide. The company designs, manufactures, and markets consumer batteries, including alkaline and zinc carbon batteries, rechargeable batteries and chargers, hearing aid batteries, other specialty batteries, and portable lighting products; pet supplies comprising aquatic equipment and supplies, dog and cat treats, small animal foods, clean up and training aids, health and grooming products, and beddings. It also offers electric shaving and grooming devices; small appliances, such as small kitchen appliances and home product appliances; and electric personal care and styling devices. Spectrum Brands Holdings, Inc. sells its products through various trade channels, including retailers, wholesalers and distributors, hearing aid professionals, industrial distributors, and original equipment manufacturers primarily under the Rayovac, VARTA, Remington, Tetra, 8-in-1, Dingo, Nature's Miracle, Spectracide, Cutter, Hot Shot, Black & Decker, George Foreman, Russell Hobbs, Farberware, Black Flag, FURminator brands, and various other brands.

To review Spectrum's stock, please take a look at the 1-year chart of SPB (Spectrum Brands Holsings, Inc.) below with my added notations:
1-year chart of SPB (Spectrum Brands Holsings, Inc.)
For the last (3) months SPB has been stuck within a common pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. SPB's rectangle pattern has formed a $48 resistance (red) and a $43 support (navy). A break above $48 would also be a new 52-week high.

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Emerging Hot Spots for Global Investing Are Closer Than You Think

Fifty years after Yugoslavian President Josip Tito founded the Non-Aligned Movement, the economies of the association's roughly 120 nations have grown in excess of 5% per year on average, while larger developed economies in North America, Europe and Japan have slowed to a crawl. Yet, it's easy to forget the investing potential of these emerging markets, spread throughout Asia, Africa and Latin America. When investors have sought to gain exposure to less developed economies, they've largely focused on Brazil, Russia, India and China, mostly ignoring the dynamic growth that has been taking place beyond the "global top 20." But you need not venture halfway around the world to profit from the robust growth among the non-aligned nations. Instead, just look south of the border.

In Mexico, for example, the economy grew roughly 5% in 2010 and 4% in 2011, which was twice as fast as the U.S. economy -- its top trading partner. As a result, the Mexican stock market has been on a tear, as this five-year chart of the iShares MSCI Mexico Investable Market Index shows.

A region-wide phenomenonOne trait is fueling growth in Mexico and all across Latin America: rising middle classes. As citizens earn more, they begin to spend more in restaurants, at department stores, on travel and on entertainment. And that spruces up demand for a range of new businesses that cater to consumer appetites. Glance at GDP per capita, which is the size of a respective economy divided by its population size.  (more)

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Wondering When To Sell A Stock? Use This 4-Minute Checklist

 As an investor who loves to simply buy, hold and collect returns from my investments, I usually hate the idea of having to sell one of the stocks in my portfolio.
After all, I'd like to think that I invested in good companies that didn't ever need to be sold.
But sometimes, even stocks that have delivered years of solid returns lose their stride. Other times, a good company may become mediocre. And then there are times when you discover you chose a bomb of a stock instead of a treasure.

Meanwhile, dozens of other potentially great stocks await that could make your money grow much faster -- so why not just dump the stock that's not performing?

Because selling for the wrong reasons can be a costly mistake. It's much easier to buy a stock than to know when you should sell one.

Many investors are reactive and sell at the same time everyone else does -- when they're fearful. But your emotions aren't the best guide for making critical financial decisions. Look at how investors have reacted to stock market downturns in the past five years:

As you can see, investors often react and sell after it's too late. Other times, they hold on and keep losing money on a soured stock. That's why it's important to be proactive, watching the finances and moves of the company behind the stock you own, so then you can see the warning signs before your stock falls (or in some cases, plunges further than it has already).

While it's generally a good idea for most investors to sell sparingly, here are some emotion-free signs that it's finally time to sell a stock: (more)

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