Tuesday, April 29, 2014

Marc Faber: “Emerging Economies Will Be Submerging Soon; May Lead To Devaluations & Higher Gold Demand”

During a time of stagnating emerging market growth and increasing Asian gold demand, Marc Faber, Director of Sprott Inc. and Publisher of TheGloom, Boom and Doom Reportwas kind enough to share a few comments.
According to Marc, “if the Chinese economy imploded, it is likely that…the government would implement a devaluation of the yuan,” leading to similar currency moves in the region.
Here are his full interview comments with Sprott Global Resource Investment Ltd.’s Tekoa Da Silva:
TD: Marc, the narrative on natural resources involves Asian demand. You live in Asia. So what’s happening on the ground there and can we rely on continued growth in the region?
MF: Well, that’s a very good question because we have an economic slowdown in emerging economies that is very pronounced and I think some emerging economies may be submerging soon, and have actually significant economic problems. Then the question arises, “Will they continue to buy gold?” Say if there was a recession in China, in the downturn, would people buy gold?


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Who Killed Facebook? FB

from Wealth Cycles

Despite evidence to the contrary—such as 1.28 billion monthly users and a $1.84 billion market valuation as of March 13—online social network Facebook is dying, according to a paper by two Princeton academics published in January. The Princeton study predicts that Facebook will lose 80% of its peak users by 2017. The Princeton results reaffirm an earlier global social media impact study funded by the European Union, which reveals that the key youth demographic so attractive to marketers and so essential to the future of any online platform is abandoning Facebook in droves, according to a 2013 Bloomberg Television report.
Continue Reading at WealthCycles.com…
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Nationstar Mortgage Holdings Inc (NYSE: NSM)

Nationstar Mortgage Holdings Inc. provides residential mortgage loan services in the United States. The company operates in two segments, Servicing and Originations. The Servicing segment is involved in the calculation, collection, and remittance of principal and interest payments; administration of mortgage escrow accounts; collection of insurance claims; administration of foreclosure procedures; management of real estate owned (REO); and disbursement of required protective advances. The Originations segment is involved in the origination, packaging, and sale of government-sponsored enterprises mortgage loans into the secondary markets. It also provides a servicing portfolio retention source by providing refinancing services to its existing servicing customers; an organic source of servicing assets; and a loss mitigation solution for its servicing clients and customers by offering refinancing options to borrowers allowing them to lower their monthly.
To review Nationstar’s stock, please take a look at the 1-year chart of NSM (Nationstar Mortgage, Inc.) below with my added notations:
1-year chart of NSM (Nationstar Mortgage, Inc.)
NSM has fallen pretty hard since its $58 peak in September. The stock finally bottomed around $25 in February and has now recovered a bit. The previous $35 support is not acting as resistance for the stock (red). The $30 level, which has been prior resistance, is now acting as support. Eventually, one of these two levels will have to give.

The Tale of the Tape: NSM is trading between its $30 and $35 levels. A long trade could be made on a pullback to $30 or on a break above $35 with a stop loss placed under the level of entry. Short setups would occur if the stock rallied back to $35 or broke below $30.
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Russian Relief Rally As US Sanctions List “Better Than Expected”

zerohedge.com / by Tyler Durden /
While Jay Carney and the White House continue to press their “sell” recommendation on Russian assets, it appears the market is buying the news (after selling the rumor). Russian stocks are ripping higher on “better than expected” sanctions and the Ruble is strengthening notably… So given that the market is signaling these sanctions are clearly weaker than expected,  we should certainly not expect any Russia de-escalation soon.
Russian Stocks soaring…
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Deutsche Bank’s $75 Trillion In Derivatives Is 20 Times Greater Than German GDP

It is perhaps supremely ironic that the last time we did an in depth analysis of Deutsche Bank’s financial situation was precisely a year ago, when the largest bank in Europe (and according to some, the world), stunned its investors with a 10% equity dilution. Why the capital raise if everything was as peachy as the ECB promised it had been? It turned out, nothing was peachy, and in fact DB would proceed to undergo a massive balance sheet deleveraging campaign over the next year, in which it would quietly dispose of all the ugly stuff on its balance sheet during the relentless Fed and BOJ-inspired “dash for trash” rally in a way not to spook investors about everything else that may be beneath the Deutsche covers.
We note this because moments ago, Deutsche Bank did the same again when it announced that it would issue yet another €1.5 billion in Tier 1 capital.
The issuance will be the third step in a co-ordinated series of measures, announced on 29 April 2013, to further strengthen the Bank’s capital structure and follows a EUR 3 billion equity capital raise in April 2013 and the issuance of USD 1.5 billion CRD4 compliant Tier 2 securities in May 2013. Today’s announced transaction is the first step towards reaching the overall targeted volume of approximately EUR 5 billion of CRD4 compliant Additional Tier 1 capital which the Bank plans to issue by the end of 2015
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