Saturday, July 26, 2014

Martin Armstrong – Hang In Or Hang Up

from Financial Survival Network
We caught up with Martin Armstrong today. We wanted to know if he was sticking by his call for Dow 32,000 and for the Dollar to remain the reserve currency. He stands by his them and cites further proof that the wealthy are sending their funds to the US. Wealthy Europeans, Canadians and Chinese are buying up properties in the US. As far as the stock market, there’s no other place to put large quantities of money. No one trusts the banks or sovereign bonds, so the market can only continue going up.
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I have been saying for a while now thatworldwide economic collapse is soon to come to a country near you, a state near you, a city near you, and right up to your doorstep.
In all the financial world, no other than one Martin Armstrong gets it right.  The same Armstrong who analyses all data everywhere, all sectors, all history, throws it all into a computer data model and out pops the date/timeframe of 2015.75 – end of the 3rd Quarter, 2015.
This is a planned crash, folks.  Not a mere accident waiting to happen but a planned crash.  It will be done to subjugate the entire world into one economic system with full power given out by a dictator who knows best how to rule (in his eyes) the people and make slaves the whole world over…
I highly recommend the liquidation of all paper investments and that includes stocks, mutual funds, all retirement vehicles, etc and hold your dry powder for when silver dips below $19 again this Fall/Winter.
It is going to happen and when it goes below $19 I say buy, buy, buy physical and hold it.
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T. Boone Pickens: Live From Dallas

T. Boone Pickens, founder and chairman of BP Capital Management, joins Stansberry Radio.
Porter is on vacation this week so we thought we'd sneak in an exclusive interview that he did with T. Boone Pickens at the Dallas Society Conference.
As some of you might already know, T. Boone Pickens is the founder and chairman of BP Capital Management, as well as an oil expert and founder of The Pickens Plan.
Every time he joins Stansberry Radio, our listeners get priceless knowledge from one of the most legendary oil icons that have ever lived. (more)
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V: The Guerrilla Economist / End of Empire America

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South Africa, Australia top stock markets in the world for over a century

Americans take pride in what’s called American exceptionalism. They were the first country to practice democracy in modern times. They were the first with no monarchy or aristocracy. America was the first country to free itself from European control. It admitted new territories, not as colonies, but as equal states. Americans let capitalism flourish, among many other achievements.
So it’s no wonder that some investors think that American stocks have done exceptionally well too. After all, what started out as 13 British colonies along the Atlantic coast has become by far the world’s largest economy. But, while American stocks have done better than most, they are not exceptional.
Australian and South African stocks won
History shows that American stocks have performed well over time. From 1900 through 2012, they provided average real (removing the impact of inflation) compound returns of 6.2 per cent.
Three British economists—Elroy Dimson, Paul Marsh and Mike Staunton—examined the historical returns of stocks and bonds in 19 countries from 1900 through 2012. A portfolio that invested a dollar in all 19 countries in 1900 would have generated an average yearly real compound return of 5.4 per cent. This is relatively close to the real compound return of American stocks.
Both Australian and South African stocks beat American stocks. Their average yearly real compound returns from 1900 through 2012 were above seven per cent.
Canadian stocks were in sixth place
Canadian stocks were in sixth place—after South Africa, Australia, the United States, Sweden and New Zealand. From 1900 through 2012, Canadian stocks outpaced the stocks of the United Kingdom, Finland, Denmark, the Netherlands, Switzerland, Norway, Ireland, Japan, Spain, Germany, France, Belgium and Italy.
Many of these countries suffered from economic disasters such as hyperinflation, depressions and wars. Even so, the stocks of all 19 of them experienced positive compound real returns from 1900 through 2012.
We have often noted that American stocks outpaced American government bonds and Treasury Bills. The longer the time period examined, the greater the outperformance of stocks.
This was also true of all 19 countries examined by Dimson, Marsh and Staunton. On average, stocks returned 3.7 per cent more than government bonds and 4.5 per cent more than T-Bills each year.
What’s more, both government bonds and bills produced losses (negative returns) in Italy, Belgium, France, Germany and Japan. From 1900 through 2012, for instance, Italian Treasury Bills lost value at an average compound yearly rate of close to four per cent. This was mostly due to inflation.
Meanwhile, Italian stocks provided real returns of 1.7 per cent. True, this was the lowest return of the 19 countries. But it was still far better than the losses on Italian Treasury Bills and government bonds.
Companies can raise prices, bonds can’t
One thing to keep in mind is that most companies can raise their prices during inflationary times. This can shield these companies and their shareholders from the worst effects of inflation. Ordinary bonds, by contrast, offer investors no protection against inflation. They’ll never pay more than they promised.
In short, it’s worth buying American stocks to diversify your portfolio--particularly when it comes to manufacturers and consumer products and services companies. But since American stocks are not exceptional, it’s worth buying stocks in other advanced countries as well.
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What About that Bullish Corn Market??

The window in which adverse weather can hurt the developing corn crop is closing rapidly. We're on tap to raise a huge, record large crop. Look for a substantial jump in the yield, likely moving well above trend-line. The grain numbers are changing rapidly with projected ending stocks for next year expected to swell toward, and eventually above 2.0 billion bushels. World ending stock projections are of a scary proportion. Lower corn prices can and should be expected into the fall harvest. Let's plow through some of the numbers. (more)

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Chart Says It's Time to Sell Johnson & Johnson (NYSE: JNJ)

It is no secret that big stocks have fared better recently compared with mid caps and small caps. What may not be immediately apparent is that consumer staples stocks of all sizes have been lagging. So have drug stocks. So when we find a stock straddling all three areas, we should take note.
Pharmaceutical and consumer products maker Johnson & Johnson (NYSE: JNJ) is one such stock, and unlike its large-capitalization peers, its chart is not healthy.
Last week, the stock moved below both its rising February trendline and 50-day moving average in what should be a serious warning for investors. Indeed, the pattern now developing is such that it is probably a good idea to sell it if not go outright short.
JNJ Stock Chart
Let's start with the big picture. Between July of last year and March of this one, JNJ traded in a rather wide range between $85.50 and $95.50, in round numbers. It exploded higher on March 21, on news of positive results with its schizophrenia treatment, for a technical breakout.

The rally progressed nicely until crossing the $105.50 level, where it stalled. Why $105.50? That was the measured objective for the trading range breakout. The 10-point height of the range projected up from the breakout level of $95.50 targeted $105.50.
Though prices edged slightly higher, the supporting technicals deteriorated. For example, cumulative volume started to fade in June, soon after the price target was reached.
As the stock fell, volume was much heavier than normal. And as JNJ rebounded over the past few days, volume contracted as it usually does during a countertrend move. In other words, volume is telling us that short sellers taking profits and not aggressive bulls pushed prices up this week.
The rising corrective bounce may not yet be over, but to me it looks to be a matter of time before the new falling trend reasserts itself. Support at the top of the old range near $95.50 seems to be the likely next downside target.
Recommended Trade Setup:
-- Sell JNJ short at the market price
-- Set stop-loss at $104.40
-- Set initial price target at $95.50 for a potential 7% gain in four weeks
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