Wednesday, May 14, 2014

Will Government Confiscate Assets: Martin Armstrong

QUESTION: If the public is racing to buy assets (real estate, coins, etc) will the government not try and confiscate everything we have, for the good of us all, to “help with our debt”?
Thanks. SD
ANSWER: There is no real precedent for confiscating everything other than communism and the crazy antics of Maximinus, who they killed in rather short-order. Nevertheless, the movement of assets like gold that use to flow between nations may not be possible given the metal detectors and the laws that presume money laundering if you try to take more than $10,000 without telling the government.
The system is going to collapse. This is simply unsustainable. The only question remains TIMING. You have to understand that the confiscation of gold was to fund the New Deal by the government realizing the profits from its devaluation of the dollar.
The US share market is breakout out to new highs again. This is reflecting the shift in capital. The more analysts keep calling for a crash, the higher it seems to move. There remains the question if we will move back to new highs after November or invert into a cycle low for 2015.75. If that were to happen, then the entire bull market will be extended and we will see the total confusion of bond defaults. For now, the market remains poised for new highs into at least June as we explained at the conference.
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Norfolk Southern Corp. (NYSE: NSC)

Norfolk Southern Corporation is engaged in the rail transportation of raw materials, intermediate products, and finished goods. As of December 31, 2013, it operated approximately 20,000 miles of road in 22 states and the District of Columbia. The company also operates scheduled passenger trains; transports overseas freight through various Atlantic and Gulf Coast ports; and provides logistics services. In addition, it provides bimodal truckload transportation services primarily utilizing RoadRailer trailers, a hybrid technology that facilitates over-the-road and on-the-rail transportation in the eastern United States, as well as in Ontario and Quebec through a network of terminals. Further, the company is engaged in the acquisition, leasing, and management of coal, oil, gas, and minerals; development of commercial real estate; telecommunications; and leasing or sale of rail property and equipment.
To review Norfolk’s stock, please take a look at the 1-year chart of NSC (Norfolk Southern Corporation) below with my added notations:
1-year chart of NSC (Norfolk Southern Corporation)
NSC has been trading sideways for the last 2 months. Over that period of time the stock has formed a decent resistance level at $97.50 (red). In addition, the stock has also created a level of support at $92.50 (blue). At some point the stock will have to break one of the two levels the rectangle pattern has created.

The Tale of the Tape: NSC has clear levels of support ($92.50) and resistance ($97.50). The possible long positions on the stock would be either on a pullback to $92.50, or on a breakout above $97.50. The ideal short opportunity would be on a break below $92.50.
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Gold’s Bottom Coming – Charles Nenner Research

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Investor Survey Explains Why Investors Remain “Side Lined”

Each quarter I run a survey of investor attitudes, allocations and economic expectations to get a sense of actual “investor” behavior. In the financial markets it is easy to become“detached” from reality and assume that “everyone” is acting in a similar manner. The survey shows that this is far from being the case. What was not surprising was the makeup of survey participants.
I have often stated that the average investor has about 15 years to save for retirement. This is due to ability much more than desire. During the younger years of life there is little ability to save as wage scales tend to be lower as marriage, family and debt consume most of their income. As shown by the survey the majority of individuals are between the ages of 46-65. Furthermore, as would be expected, the majority of investors surveyed also have higher levels of education which tends to lead to higher incomes later in life.
Of course, when it comes to saving for retirement the most important question is whether an individual is saving enough? The survey shows that roughly half of those surveyed “think” they are saving enough for retirement with on 15% feeling as though they have more than enough.
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Fluor Corporation (NYSE: FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, and project management services worldwide. The company operates in five segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services, and Power. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.
Please take a look at the 1-year chart of FLR (Flour Corporation) below with my added notations:
1-year chart of FLR (Flour Corporation)
FLR has held a very important level of support at $74 (blue) since October of last year. No matter what the market has done lately, FLR has not broken $74. Now the stock is approaching $74 again and that might provide another bounce higher. However, the stock’s recent creation of lower highs sure seems to imply an impending breakdown in the making.

The Tale of the Tape: FLR has a key level of support at $74. A trader could enter a long position at $74 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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