Saturday, January 19, 2013

MUST WATCH: The Frightening Truth About Germany’s PHYSICAL Gold Move Pours Out on CNBC

If the gravity of the recent move by the Bundesbank to demand a portion of its gold back from the NY Fed, and all of its gold back from the bank of France is lost on you, check this out.
The horrifying reality of the worldwide central banking monetary sham is beginning to cut through, even on CNBC. Although mockingbird host Melissa Lee tries her best to diffuse the outpouring of truth in this ‘Market Mystery’ segment, she fails miserably. Lee kicks off this must-watch clip by asking, “Why is Germany moving gold out of the United States? Why don’t they trust us any more?
CNBC’s Guy Adami goes on to break it down in a way that surely must have left Mr. Geithner and the Bernank reaching for their red direct-line phones to CNBC censors.
If you think Germany’s going to be the last, they’re not. People will line up and do this, and you talk about runs on banks? Well, this could potentially be exactly that because if everyone wants there metal back at once you better hope A.) that it’s THERE, and B.) that we’re able to do it. And I’m telling you, the act itself is not bullish gold necessarily but the act itself sends messages about what’s going on in the world.
At the conclusion of Adami’s rant, Lee sheepishly asks, “Is there maybe not enough gold in the bank?” To which the response is, “Yeah, potentially.” Lee responds, “You sound like a real conspiracy theorist.”
It’s too late for that nonsense Ms. Lee. The cat has been outta the bag for quite some time, and even CNBC’s brainwashed mainstream audience is beginning to see the truth now: The Western fiat banking system is mortally wounded, and this broken paradigm will soon come to an end.


Please bookmark us

Everything You Need to Know About the Debt Ceiling

Congress made a deal to avoid the fiscal cliff, but you don't actually think we're done with 11th-hour partisan battles that bring the country's finances to brink of ruin, do you?

Of course we're not. Sometime in the next six weeks, the Treasury won't have enough money pay the government's bills. Prevented from borrowing more because of the self-imposed debt ceiling, we'll face two options: Either Congress must agree to raise the debt ceiling, or something awful will happen.

Confused? Here's what you need to know.

What is the debt ceiling?

Before 1917, Congress literally had to approve each new debt issuance, deciding on the bond's maturity, its interest rate, and what the money was specifically to be used for.

This became too burdensome on the eve of World War I, when the government needed to quickly spend a lot of money without stumbling over administrative rules. So, in 1917 Congress passed the Second Liberty Bond Act, which provided authority to issue new debt with relaxed restrictions on the maturity and redemption of bonds being issued. (more)

Please bookmark us

Why The Rest of the World is Pouring Billions Into the U.S. Real Estate Market

Yngve Slyngstad and Peter Ballon aren't well-known names in the U.S. investment community, but their decisions are having a multi-billion dollar effect on a key asset class. These men head up organizations that manage Sovereign Wealth Funds in Norway and Canada, respectively, and each one is now scouring the United States for premium real estate opportunities. 

Norway's Slyngstad, for example, told Bloomberg News this past December that his nation will invest up to $11 billion in high-quality U.S. office buildings.

Canadian investors already have a head start. They've deployed $9 billion in U.S. funds during the past few years, much of it at the behest of the Canada Pension Plan Investment Board, with plans to keep investing aggressively in U.S. real estate in the next few years. Like Norway, Canadian government investors also prefer high-end office buildings.

Follow the money trail, and you can see that it's a great time to be an investor in this kind of real estate. This is actually what Carla Pasternak, chief strategist of High-Yield Investing, has been telling her eaders for months. She's even called it the "most dramatic turnaround in U.S. history."

With this clear trend in mind, here are three U.S. real estate investment funds that should greatly benefit from this foreign flow of funds into the country.

1. The Blackstone Group (NYSE: BX)
My colleague Michael Vodicka recently profiled this firm for its aggressive move into distressed residential real estate. But did you know that Blackstone also owns more than $50 billion in traditional real estate, including high-end office complexes?

At a recent conference, Blackstone's Jonathan Gray, global head of real estate and a board of directors member, recently said the company intends to take advantage of the ripe market conditions, aiming to fetch high prices for some trophy properties. "The other trend that will be helpful for us to exit some of the larger things we own, particularly the higher-quality assets in the gateway cities, is the rise of the sovereign wealth fund." (more)

Please bookmark us

Investing Lessons from Sir John Templeton

Investor Lauren Templeton shares some life wisdom and investing lessons from her great-uncle, Sir John Templeton in this VIC 2012 video.

By way of background, John Templeton was a pioneer of global share investing who founded the Templeton Growth fund in 1954. As his wealth increased, he also became known for his philanthropic efforts and writings. In the 1960s, he renounced his U.S. citizenship (an increasingly popular move among the rich of late) and continued to live in the Bahamas as a Bahamian citizen.

In her talk at the Ben Graham Centre for Value Investing, Lauren Templeton shares some insights on Sir John’s investment philosophy and his life. A few notable lessons and quotes:

1. Born in Tennessee, Templeton was an excellent student who attended Yale and Oxford. While at Yale, young John found he had to work to pay for a part of his schooling. His skill with probabilities helped him earn a good part of the money playing poker.
2. After studying at Oxford, Templeton took a 40-nation tour of the world. He was gone so long that his mother thought he had passed away! His travels provided a “bedrock of geopolitical knowledge” to guide his investing.
3. Lauren relates the story of his first trade in “maximum pessimism”, the famous deal in which Templeton borrowed $10,000 and purchased shares of all the U.S. companies trading below $1 a share. Even though many of the companies were facing bankruptcy at the time of his purchase (on the eve of World War II), most turned a profit and he sold his shares for a $40,000 profit a few years later.
4. Listed among his personal attributes: self-reliance, flexibility, sense of stewardship, a drive towards diversity (seeking opportunities globally), a bargain-hunting mentality, devoting time to study, ability to retreat from daily pressures, developing a broad range of friendships and contacts, positive thinking, patience, simplicity, and great intuitive powers.
5. “To buy when others are despondently selling, and to sell when others are avidly buying, requires the greatest fortitude and pays the greatest ultimate reward.”
6. “If you want to have better performance from the crowd, then you must do things differently than the crowd.”
7. John was a thrifty saver and he advised his family and friends to live simply and save 50 percent of their income. He viewed his savings as the seed corn of future investments and opportunities.
8. Templeton operated on a truly long-range view. He planned in advance for market panics by drawing up a list of securities to buy at bargain prices. When he discussed his charitable foundations, he spoke of finding the best investment opportunities for the next 200 years. After searching the globe for property investments that might suit his foundation, he still came back to stocks.
There’s a good deal more in this video on behavioral finance and human behavior in market panics. As Lauren Templeton says, “If you’re aware of your biases you’ll become a better investor.”.
Enjoy the video and the insights. You’ll find more from Sir John and friends below.

Please bookmark us

5 Trends to Dominate the Next Decade

The world's largest consumer electronics show wrapped up last week in Las Vegas. Our own Rex Moore was there, and in the video below shares five fabulous trends investors need to be aware of.
What's inside Supernova?
If you're an investor looking for big long-term winners, Motley Fool co-founder David Gardner's picks have frequently trounced the market. How? Because he's always on the lookout for revolutionary stocks, and he recommends them before Wall Street catches on to their disruptive potential.
Please bookmark us

We Are Now Seeing Massive Shortages Of Silver / January 18, 2013
Today Egon von Greyerz told King World News he is now seeing massive shortages of silver.  Greyerz went on to warn about a frightening series of global storms which are set to collide, which will create an enormous hurricane in 2013.  He also spoke about gold and included a tremendous chart all KWN readers will want to see.
Here is what Greyerz, who is founder of Matterhorn Asset Management in Switzerland, had this to say in this remarkable, exclusive interview:  “Eric, I see storm clouds gathering everywhere.  We have currency storms, economic, political, and geopolitical storms.  But short-term we may see some optimism in the economy as global stock markets make their final top.”
Egon von Greyerz continues:
“But that top in global stock markets is the final top before a major long-term collapse.  Thereafter, I see these storm clouds developing into serious problems for the world.  Every country is running a deficit and they all keep borrowing and printing incredible amounts of money.
Central bank balance sheets have exploded to extraordinarily dangerous levels in recent years….

Please bookmark us

Why Smart Investors Are Pouring Trillions into This Type Of Stock

For decades, analysts have heralded small-cap stocks as the real growers in the stock market. And they're right to some extent; a study that tracked stock returns from 1926 to 2008 found that U.S. small caps delivered an annualized return of 16.5% compared to large caps' annualized return of 12.9%.
But that doesn't mean investors are dumping their large-cap stocks -- big, stable companies like Coca-Cola (NYSE: KO) and Microsoft (Nasdaq: MSFT) -- in favor of lesser-known small-cap companies (those that are smaller and presumably faster-growing).

In fact, just looking at the entire U.S. stock mutual fund market as of Sept. 30, 2012, investors held a whopping 75% of all assets ($2.6 trillion) in large-cap equity mutual funds. That dwarfs the 15% ($507 billion) investors held in mid-cap funds and the 10% ($360 billion) held in U.S. small-cap funds.

So why are investors using large caps as the backbone of their portfolios?

Because most of them have learned, sometimes reluctantly, that large companies have something small companies don't have: deep pockets and stability.

Through recessions, wars and market crashes, large companies have been a proven long-term source of both safety and impressive gains. Just look at how these companies fared over the past 31 years:

Want to know exactly how large companies such as these make solid, long-term investments? It all comes down to three main advantages that large-cap companies have over their smaller company counterparts.  (more)

Please bookmark us

The Weekly Technical Take

Dollar index 4 hour chart is forming a bear flag. Until the lower blue support line is broken the flag will continue higher.
Crude oil has a big pop yesterday as it continues up its support trend line. It looks as though it may take a run at the $100 per barrel level over the next 1-2 weeks.
Natural gas had bullish inventory numbers yesterday sending the price sharply higher. It tagged our $4.50 resistance price but could not close above it. This morning it is trading above that level and may confirm a breakout.
Gold continues in a clear down trend with high volume resistance, down trend line and a moving average holding it down. It seems everyone is turning bullish here on gold, but in my contrarian view that is signaling another short term top. Stick with the trend until proven wrong.
Silver is trading similar to gold. Still in a down trend but is much more volatile.
Bonds have been pullback since the December and have formed a falling channel. Price remains bearish which is actually bullish for the stock market.
SP500 index continues its uptrend but is trading at a 2% premium above my key support/trend moving average. The SP500 has the potential to drop 2-4% at any time and if so we will be looking to get long with the overall trend.

Morning Market Conclusion:

Each month on average the broad market provides a pullback that signals a broad market entry point. During an entry point you can get long the index, sectors or stocks, and trade options which have formed bullish chart/volume patterns. Unfortunately the last batch of signals that took place was just before the fiscal cliff which we passed on taking because price could have gone either way based on the outcome and the move was going to be big. When Risk is higher I tend to steer clear of entry points.
So now we just have to wait for the next broad market pullback to start building long positions in various ETFs.

Please bookmark us