Tuesday, April 16, 2013

The One Lie That Will Bring Down America: Jim Rogers

Despite the current stock market rally, legendary investor Jim Rogers say the U.S economy is poised for a major crash and is warning investors to protect themselves immediately.
In a riveting interview on Fox Business, Rogers warned Americans not to trust any of the positive economic news coming from world governments.
"I don't trust the data from any government, including the U.S., Rogers said. "We know that governments lie to us. Everybody's printing money, but it cannot go on. This is all artificial."
Rogers, who for years has been an outspoken critic of the Feds policies of "Quantitative Easing" says all the money printing is creating false hope that we are in the middle of some kind of super bull market.
But in reality, he says, "we're living in a fool's paradise." (more)

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LBMA Default Triggered Gold & Silver Takedown - Maguire

With massive selling once again in the gold and silver markets, today whistleblower Andrew Maguire told King World News the reason for the recent takedown in gold and silver was because of an imminent LBMA default.  Here is what Maguire had to say in part II of this remarkable and exclusive interview.
Maguire:  “Gold and silver only have this type of selling when there are extreme shortages of the physical metal.  I am totally aware that before this takedown occurred there was an imminent LBMA default.
We had already seen COMEX inventories plunging.  In 90 days COMEX inventories saw an incredible decline.  So immediately available physical gold was disappearing.  People around the world don’t understand what has been happening since Cyprus….
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Chart of the Day - Xerox (XRX)

An old favorite Xerox (XRX) is today's Chart of the Day.  In addition the stock is trading above its 20, 50 and 100 day moving averages.

Xerox is the world's leading enterprise for business process and document management.  They offer business process outsourcing and IT outsourcing services, including data processing, healthcare solutions, HR benefits management, finance support, transportation solutions, and customer relationship management services for commercial and government organizations worldwide. The company also provides document technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size.

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“Whenever A Government Says, ‘Don’t Worry, Everything’s Going To Be Fine’—That’s The Tip-Off To Worry”

I had the chance once again to speak with one of the great market speculators of our time, Doug Casey, chairman and founder of Casey Research. It was a fascinating conversation as usual, as Doug is a world expert on identifying “politically-caused distortions in markets,” and betting on or against them.
During the interview, Doug indicated that we’ve now left the “eye” of the global financial hurricane, to where, “all the banks in the world are bankrupt,” with coming volatility to bring down many markets by 90% or more.
When asked about the larger implications of the Cyprus banking collapse, Doug commented that, “It seems to me that the inevitable is now becoming imminent. This is a major crack in the dike whats going on in CyprusThe [Russian Oligarchs] were notified by their Cypriot bankers to transfer [their money] out to various other branches [in advance]…[because] the bankers knew that if an oligarch doesn’t get his money back, very, very bad things are going to happen to the banker. As usual, it’s the little guy that got screwed, and the rich Russians worked out just fine. It’s going to be like that in a lot of other countries around the world.” (more)

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If You Own Any of These Dividend Favorites, Your Income May be in Jeopardy

Large-cap dividend payers are usually thought of as safe stocks. These are typically companies in an industry with loyal customers, like drug companies or phone companies. But while this may have been a sound strategy for generating income in the past, some large-cap, high-yield stocks could deliver large losses to investors in the next few years.

Starting with drug stocks, the numbers show investors could be disappointed. The table below shows the yield and payout ratios of some of the largest drug companies in the world. The payout ratio is the percentage of earnings allocated to dividends. High payout ratios indicate the company dedicates most of its resources to dividends and has little money left to invest in the growth of the company.

Analysts expect these three companies to grow earnings slowly over the next few years, giving them little room for increasing dividends, since dividends are paid from earnings. When a payout ratio tops 100%, as it does for BMY, a cut is possible, although it seems unlikely that BMY will cut its dividend if it meets earnings estimates. (more)

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Investment Education 101: Credit cards and loans

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Gold’s VIX Term Structure ‘Most Inverted’ Since Lehman

from Zero Hedge:
While there are obviously sellers in the gold market, there is also a dramatic spike in demand for protecting what is still being held (remember there is a buyer for every seller). Gold’s short-term VIX (implied volatility) has spiked to 18 month highs above 29% but it is the steepness of the term-structure of volatility that shows just how much protection is being sought. The difference between the one-month volatility and one-year volatility is almost 10 vols – the highest level of inversion (short-term risk higher than long-term) since Lehman. It seems the market is extremely fearful of further volatility in the short-term but less concerned longer-term. What is also worrisome is that the last two times that Gold’s VIX was this much higher than the S&P’s VIX was June 2006 (when the first hedge funds started to implode from Subprime) and Sept 2008 (Lehman). It appears that gold volatility is signalling counterparty risk concerns once again.
Read More @ ZeroHedge.com

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Cooper Tire & Rubber Company (NYSE: CTB)

Cooper Tire & Rubber Company, together with its subsidiaries, manufactures and markets replacement tires worldwide. It operates in two segments, North American Tire Operations and International Tire Operations. The North American Tire Operations segment offers passenger car and light truck tires, as well as distributes tires for racing, medium trucks, and motorcycles to independent tire dealers, wholesale distributors, regional and national retail tire chains, and other automotive product retail chains. This segment sells its products through three own retail stores. The International Tire Operations segment manufactures and markets passenger car, light truck, motorcycle, and racing tires and tire retread material. The company was founded in 1913 and is based in Findlay, Ohio.
Please take a look at the 1-year chart of CTB (Cooper Tire & Rubber Company) below with my added notations:
1-year chart of CTB (Cooper Tire & Rubber Company) The trades here are pretty simple. CTB has been holding a very important level of support at $24 (blue) for the last (5) months. No matter what the market has or has not done over that period of time, CTB has not broken below that $24 support level. The stock approaching $24 should provide a bounce higher. However, if the overall market were to sell-off, CTB could break that support.
The Tale of the Tape: CTB has a very strong level of support at $24. A trader could enter a long position at $24 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.

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