Wednesday, December 3, 2014

Stocks Have Been More Expensive Only ONCE in the Last 100 Years / By Graham Summers / 1 December 2014
Stocks today are overvalued by any reasonable valuation metric.
If you look at the CAPE (cyclical adjusted price to earnings) the market is registering a reading of 27(anything over 15 is overvalued). We’re now as overvalued as we were in 2007. The only times in history that the market has been more overvalued was during the 1929 bubble and the Tech bubble.
Please note that both occasions were “bubbles” that were followed by massive collapses in stock prices.

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Mining Stocks vs. Physical Gold: A New Bull Market in Metals

Throughout the 1980s and 1990s, gold was generally a poor investment. If you talked to most investors, it was rare to find someone who had any significant investments in gold.
While it is still not a common investment, a lot more people today recognize the importance of owning gold as part of a balanced portfolio and simply as a hedge against a declining currency.
It is also a lot easier today to hold gold and gold-related investments than ever before. You can buy gold stocks, gold exchange-traded funds (ETFs), mutual funds, and actual physical gold. And you can buy many of these things in a matter of seconds through an online brokerage account.
With that said, there are significant differences between investing in physical gold and investing in mining stocks. The two are somewhat correlated, but they serve very different purposes in an investment portfolio.  (more)

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Traders: Here's When You Should Buy Oil

Oil has been crushed.
On Friday, the price of West Texas Intermediate (WTI) crude oil fell 10%. That's the biggest one-day decline in five years.
Since June, WTI oil has fallen from more than $110 per barrel to around $65. That's a 41% drop in about five months. In short, oil is now trading at its lowest price since 2009.
That has a lot of traders looking to buy. But before you jump in, there's one important point to remember...(more)
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Leju Holdings Ltd (NYSE: LEJU)

Leju Holdings Limited, through its subsidiaries, provides online-to-offline (O2O) real estate services in the People’s Republic of China. The company offers e-commerce services that comprise selling discount coupons and facilitating online property viewing, physical property visits, and pre-sale customer support for new residential properties and home furnishing sales through and It also sells advertising on and, which are new residential properties and home furnishings Websites operated by the company, as well as acts as an advertising agent for and other non-real estate websites.
Take a look at the 1-year chart of Leju (NYSE: LEJU) with the added notations:
1-year chart of Leju (NYSE: LEJU)
Outside of the July-August rally, LEJU has been trading sideways since it IPO’d. In addition, since the beginning of August, the stock has found support at $12 (red) whenever that level has been approached. Now that the stock is there again, traders should be able to expect some sort of bounce. However, if the $12 support were to break, much lower prices should follow.

The Tale of the Tape: LEJU has a key level of support at $12. A trader could enter a long position at $12 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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