Wednesday, 10 August 2011
August 9, 2011 Midday Financial Report
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
August 9, 2011 Midday Metals Report
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Ellis Martin Report with David Morgan
by silverguru on Aug 9, 2011
Ellis Martin speaks with David Morgan, The Silver Guru of www.silver-investor.com about the current condition of the US economy and the value of investing in precious metals as a safe haven. Is market collapse imminent? Has the tipping point been reached, good or bad? What about gold stocks? This is Mr. Morgan's most revealing interview to date with this journalist.
U.S. Debt stalemate, Swiss Franc and Gold - video July 29th, 2011
U.S. Debt stalemate, Swiss Franc and Gold
July 29th, 2011 at 08:38amDr. David Costa of Robert Kennedy College on CNBC 29 July 2011 from Dr.David Costa on Vimeo.
- U.S. Debt stalemate, Swiss Franc and Gold
=============================
-
Just after the resolution of the Greek issue as a result of the U.S. debt ceiling stalemate investors have returned to the "risk off mode".
I am confident that a solution will be found but part of the damage in terms of investors confidence has been made. Both the U.S. and some European countries face problems like high debts and unemployment that are very difficult to cure in a low growth environment.
The fly to safety landed in both Swiss Francs and Gold. I see the gold prices to remain strong till the end following the appetite of investors wishing to hedge their exposure to equities, to a weakening dollar and a possible US downgrade.
- Swiss banks and Change
UBS and Credit Suisse reported much lower profits in their investment banking activities with cut in workforce as high as 4% in the case of Credit Suisse. This represent a substantial change of the banking landscape where Swiss banks continue to be successful in the Wealth managing business and should perhaps accept that the model of the universal bank with both strong investment banking and wealth management operations is obsolete. Swiss banks continue to benefit from inflows from Asia and emerging economies and should focus exclusively on the wealth management business and any activity as a support, and not core, to wealth management.
Swiss banks need to adapt to change and try to be leader in a market that is less capital intensive and where they benefit from a long history and positive image, particularly relevant in periods of uncertainties like now.
- Sparkling diamonds ? Adapting to Change
Among the sectors that do not seem to face any slowdown we have luxury goods. Both LVMH and Swatch group reported strong results (LVMH net profits up 25% in the first six months Swatch +24.5% in profits despite the strong Swiss franc) and since my recommendation of last year this has been among the best performing sectors. Diamond leaders De Beers, that operates jewelry stores in a 50/50% joint venture with LVMH, is set to open its second store in Hong Kong and several more in China during this year.
According to the De Beers by 2015 China, India and Middle East will account for 40% of global
consumption surpassing the US. (China has currently 11% consumption, India 10% Middle East 8% and U.S. 38%).
Similarly Salvatore Ferragamo (previously mentioned on the Show and up 30% since the IPO of 1 month ago) sells
more in Hong Kong than in any other of their stores.
This confirms that investors should embrace change and focus on well known brands with a strong presence in Asia, India and fast growing markets. This is applicable to any sector including private banking: these private banks with a strong presence in Asia and developing markets will benefit from this inevitable "new normal" !
In short
Adapting to Change
===================
- While I do think that the US will reach a resolution of the debt ceiling stalemate many issues and the high debt remains. There is a strong need for ways to reduce unemployment and re-create growth.;
- Investors demand for Gold and the safe heaven Swiss Francs will remain at least till the end of the year. Important to note that Gold has not increased year to date in Swiss francs and has increased only marginally since last year.
- Swiss Banks need to adapt to the new environment and focus to maintain their leadership in the Wealth Management business and focus their investment banking activities as support and auxiliaries to the main core business;
- In the new normal where growth is mostly coming from China, Asia and Emerging markets investors need to embrace change and invest in these companies that will benefit from this new trend.
-We cannot ignore the facts that among the best results reported this semester we have luxury good European companies. This because China and emerging countries can pretty much produce anything but in the case of luxury they want the brand and artisanal manufacture unique to these companies.
- Italian worries not justified - Perception problem
================================
The worries about Italy are mostly the investors vote of no confidence toward Europe.
European inability to deal with the Sovereign debt problem of the peripherals Economies in a decisive manner is bringing indiscriminate fear into the markets.
There is a need for decisive and immediate action to contain the debt crisis.
The Italian deficit plan is appropriate and should be soon by voted by the Parliament. Most of the Italian debt is held internally so any comparison with the situation in Greece or Ireland (and even Spain) is not justified;
- A Default would be a big mistake
I still maintain that any type of default or credit event on Greek debt would impact investor confidence toward all European debt. As declared by Trichet I think that the solution should be in the form of "�No credit event, no selective default, no default�. The perception and market reaction to any form of default or credit event can be catastrophic.
- Italian banks not under "stress"
As many of the Italian retail banks have already increased their capital requirements I do not expect big negative surprises: on the contrary I expect the Italian banks to pass the tests with good margins.
- European Rating
I think that a European Rating agencies would be beneficial to create diversity in a market clearly dominated by three players. Additionally, rating agencies should suspend their rating on these countries that received international aid (e.g. Portugal and Greece) and given them enough time to implement reforms. Europe should create their rating agency and bring more diversity to the market.
- Gold Protection
As I previously recommended holding Gold will help investors portfolio and provide a good degree of protection.
- Swiss and European Equities still interesting
Swiss equities, now down on the light of the negative market trend generated in Europe, are a good buying opportunity. Similarly many European companies, especially in Italy, have a solid balance sheet and are now trading at heavy discounts.
In short
Strategy: Perception is not reality
====================================
- Many of the worries about Italy are largely overstated. Negative perception and speculation play a strong role.
- Europe has to avoid a situation where perception becomes reality by acting quickly and decisively to contain the crisis without triggering a default or credit event;
- European banks stress tests to be largely positive;
- Swiss and European Equities, particularly blue chips with a strong brand and a presence in emerging markets, are a good buying opportunity. I recommend allocating part of the portfolio to Gold and Commodities as a hedging strategy.
http://david.fm/109-dr-david-costa-cnbc-television-12-july-2011-perception-is-not-reality.html
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
The horrifying AAA debt chart....www.reuters.com/video
The horrifying AAA debt chart (4:18)
July 22 - Reuters' blogger Felix Salmon explains the risks of believing that triple-A-rated bonds are risk-free in a world where more than half of all bonds are considered risk-free and the value of issued debt reaches $7 trillion per year.
http://www.reuters.com/video/2011/07/22/the-horrifying-aaa-debt-chart?videoId=217378026
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
FOMC in spotlight as stocks rout tails off....www.reuters.com/video
Inside the News: FOMC in spotlight as stocks rout tails off (3:49)
Aug. 9 - The Federal Reserve is in the spotlight as global stocks take another battering but there are signs the worst of the rout may be over, while European shares post heavy falls
http://www.reuters.com/video/2011/08/09/markets-remain-volatile?videoId=218111379&videoChannel=5&refresh=true
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Debt crises have gold lining......www.reuters.com/video
Debt crises have gold lining (1:28)
Aug. 9 - Gold strikes a new record as investors dump riskier assets amid fears that political leaders are failing to tackle debt crises in Europe and the United States. Penny Tweedie reports.
http://www.reuters.com/video/2011/08/09/debt-crises-have-gold-lining?videoId=218120130&videoChannel=5
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Forex @ DailyFX - US Dollar Slammed, Index Plummets on Fed Pledge to Keep Rates at Zero
Forex @ DailyFX - US Dollar Slammed, Index Plummets on Fed Pledge to Keep Rates at Zero
By Michael Boutros, Currency Analyst
09 August 2011 22:39 GMT
By Michael Boutros, Currency Analyst
09 August 2011 22:39 GMT
It’s worth noting however that the ‘safe haven’ Swiss franc continued to surge against all its major counterparts despite the risk reversal, suggesting that investors may yet still see further weakness in the days ahead. The swissie was sharply higher at the close of trade, advancing more than 4.7% against a heavy greenback.
The economic docket tomorrow sees little in the way of event risk, with MBA mortgage applications and June wholesale inventories on tap. Later in the day the July monthly budget statement is released, with consensus estimates calling for a deficit of $140 billion, down from the previous print of -$43.1 billion. And while the calendar remains rather light, dollar price action is likely to hinge on market sentiment, as investors digest the long-term implications of FOMC’s vow for a prolonged zero rate policy.
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Record gold prices bring crowds looking for cash
Record gold prices bring crowds looking for cash
kvue.com
Posted on August 9, 2011 at 6:31 PM
Updated today at 6:41 PM
AUSTIN, TX - Gold is one of the few bright spots in a gloomy economic forecast that plenty of people are taking notice of.
The price of gold rose to a record high Tuesday, closing at $1,740, up almost $30 since Monday's record. That price could go even higher with the news from the Federal Reserve stating they will keep interest rates at record lows for the next two years.
At his gold exchange in North Austin, James Lewis can't stop counting.
The price of gold rose to a record high Tuesday, closing at $1,740, up almost $30 since Monday's record. That price could go even higher with the news from the Federal Reserve stating they will keep interest rates at record lows for the next two years.
At his gold exchange in North Austin, James Lewis can't stop counting.
"It feels good to see them go, 'Wow. Cool,'" said Lewis.
Record gold prices now bring even more customers. They cover counters with old class rings to earrings for plenty of cash.
"We get people in here that sell because they have to," said Lewis. "They just need the money. And we get a lot of others, they sell because they're taking opportunity."
Record gold prices now bring even more customers. They cover counters with old class rings to earrings for plenty of cash.
"We get people in here that sell because they have to," said Lewis. "They just need the money. And we get a lot of others, they sell because they're taking opportunity."
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
110809 - Hyper Report
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Breaking down an economic mess
by WUPW on Aug 8, 2011
What does Monday's 634-point stock market loss mean for you, and where do you go with your money now?
David Dock Treece of Treece Investments has some answers in this edition of FOX Toledo Talk Back.
Gold jumps $1740 an ounce as markets crumble
by WUPW on Aug 8, 2011
The precious metal of gold traded at $1,740.40 an ounce on Monday as United States and world stock markets crumbled in the wake of America's downgraded credit rating by Standard & Poor's.
Rick Luedtke of Ameriprise Financial Services says when you have a fear-based economy where a lot of things are going down in value, people want to look to something that's a safe haven. He says that is why gold is on the rise. It's a safe haven because at times gold can beat out inflation.
Federal Reserve FOMC Meeting Dow Jones S&P 500 Nasdaq Still Highly Volatile
by StockMarketFunding on Aug 9, 2011
http://www.StockMarketFunding.com Federal Reserve FOMC Meeting Dow Jones S&P 500 Nasdaq Still Highly Volatile. Ben Bernanke discusses the economic outlook for job growth and GDP growth for the United States economy.
Federal Reserve to keep rates low through 2013. Federal Reserve meeting to stabilize economy they finally admit lower growth prospects. Information received since the Federal Open Market Committee met in June indicates that economic growth so far this year has been considerably slower than the Committee had expected. Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Household spending has flattened out, investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Temporary factors, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan, appear to account for only some of the recent weakness in economic activity. Inflation picked up earlier in the year, mainly reflecting higher prices for some commodities and imported goods, as well as the supply chain disruptions. More recently, inflation has moderated as prices of energy and some commodities have declined from their earlier peaks. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the previous meeting and anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, downside risks to the economic outlook have increased. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ these tools as appropriate.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.
Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I. Plosser, who would have preferred to continue to describe economic conditions as likely to warrant exceptionally low levels for the federal funds rate for an extended period.
Inside the News: FOMC in spotlight as stocks rout tails off
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
China stocks most vulnerable in global sell-off: Bari
by ReutersVideo on Aug 8, 2011
Aug. 8 - The liquid futures markets in China and South Korea make them the most vulnerable in the current equities sell-off, even as some valuations are becoming attractive, says Baring Asset's Khiem Do.
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