Thursday, March 13, 2014

Canadian Housing Bubble: Canadians come face to face with the paradox of golden real estate handcuffs and a younger less affluent generation.

I really enjoy Canada.  A beautiful country with great cities and fantastic food.  Leave it to our neighbors to the north to show us how it is done for a real housing mania.  For the first time in history we have experienced coordinated global housing bubbles courtesy of central banks following very similar policies.  The addiction to debt isn’t only a U.S. born condition.  While the recent U.S. market is dominated by low supply and massive investor buying, Canada continues to see rising home prices even right through the global Great Recession.  The Canadians interestingly enough also face similar dilemmas between older and younger generations.  Many young professionals are fully priced out of the real estate market even when they are working at relatively good careers.  Many battle it out in the condo markets were even in this market prices are inflated.  Canada has an incredibly heavy reliance on real estate, more so than the United States and their household debt ratios make the U.S. look like a frugal uncle.  One fascinating story highlights a similar story to what many baby boomers here in the U.S. are facing with their offspring.  They face the reality that they are house rich but cash poor.  (more)

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Will Gold, Silver and the Miners leave you behind?

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Safe Bulkers, Inc. (NYSE: SB)

Safe Bulkers, Inc., a marine drybulk transportation services company, engages in the acquisition, ownership, and operation of dry bulk vessels worldwide. The company transports various bulk cargoes, primarily coal, grain, and iron ore. As of March 14, 2013, it had a fleet of 25 dry bulk vessels. Safe Bulkers, Inc. was incorporated in 2007 and is based in Athens, Greece.
To review Safe’s stock, please take a look at the 1-year chart of SB (Safe Bulkers, Inc.) below with my added notations:
1-year chart of SB (Safe Bulkers, Inc.)
Over the last 3 months SB had created a strong level of resistance at $11 (green), which also constituted a 52-week high resistance. A breakthrough that level would most likely mean higher prices for the stock. As you can see from the chart, SB finally broke higher last week and should be hitting new highs moving forward. The increase in volume on the break (blue) should add “validity” to the breakout.

The Tale of the Tape: SB broke out to a new 52-week high. A long trade could be made near $11 with a stop placed below that level. A break back below $11 would negate the forecast for a continued move higher.
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McAlvany Weekly Commentary

Mark Faber: Gold is Your Best Cash

About this week’s show:
-Gold & real estate great long-term insurance
-Treasuries OK now, but not later
-World debt is spelled doom”
About this week’s show: Dr. Marc Faber is often quoted in both national and international media.  He has appeared at one time or another in virtually all financial media such as Bloomberg, CNBC, etc. and is a regular contributor to several leading publications around the world, Forbes and “International Wealth” a sister publication of the “Financial Times” amongst them.

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Terrifying Financial & Economic Volcano & Ukraine / March 12, 2014
Today David Stockman spoke with King World News about the escalating crisis in Ukraine, gold, and a terrifying “financial and economic volcano.”  KWN takes Stockman’s warnings very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget and help save the United States from collapse.  Below is what Stockman had to say in part I of a series of powerful interviews that will be released today.
Eric King:  “David, gold is up $20 today and I couldn’t help but notice that the U.S. Dollar Index is beginning to lose its grip on the 80 level — we’ve fallen to 79.5 on that index.”
Stockman:  “I think there is a lot of insanity loose in the world, particularly in Ukraine.  What the U.S. government and the Western European capitals are doing is stupid and dangerous….
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How to Trade Copper For a Turn Around

The price of copper is under assault. In just the past five trading sessions the iPath DJ-UBS Copper TR Sub-Idx ETN (NYSE: JJC) is down more than 8%, and year to date, the fund is off nearly 14%.
JJC now trades well below its short-term 50-day moving average, as well as its long-term 200-day moving average.
Copper ETN JJC Chart
Yet despite the drop in copper prices, I think traders can look at the sector's slide as a buying opportunity.  (more)

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