I live in San Diego and observed a very interesting phenomenon recently in the local real estate market. It looks like in early 2011, one or more banks sent out a small flood of properties on the market. And these properties sat there for a while and got a few price cuts as it became apparent that the demand was just not there. Eventually most of those properties have disappeared (presumably sold, or maybe delisted). And since then, NOTHING. I mean virtually NOTHING has hit the market recently. I assume that potential sellers and banks saw what happened and have decided not to shake loose any more shadow inventory.
“What a difference a day makes”! Well we didn’t get the sun and the flowers like in Dinah Washington’s song but more like storm and showers. For the ones who don’t remember Dinah, Amy Winehouse made a more recent version of the song. Last week I warned investors again, in the strongest tone possible, of the risks in markets. So what triggered it? Was it the Fed’s interest rise? Or was it the trade war with China? Or maybe it was Kavanaugh?
Market Closed Early for July 4th HolidayThe U.S. stock market closed early today, ahead of tomorrow's Fourth of July holiday when the markets are of course closed and Americans are out celebrating Independence Day, the birth of the nation, July 4, 1776. I love the Fourth of July as a holiday; it is purely American.Framers of the Constitution Ri ...…
We’re a wee while on now from this article, and I would say that things have moved on a little now. It is now possible to buy an “Infinite Turbo” from SG which gives you the straightforward return of a short or long position on say, the FTSE 100, with the leverage of your choice. Each ETF has its own “knockout” where you lose all your capital if your trade goes significantly against you, but you can’t lose more than your capital stake. Could be a useful tool for those with strong hearts wanting to eliminate the random number generating mechanism of daily products.
Embrace uncertainty – Anyone who doesn’t follow this momentous maxim in coming years is likely to get one unpleasant shock after the next. Because the stable progression of the world economy since WWII is now coming to an end. What should have been a normal cyclical high in the next year or two, is now going to be the most massive implosion of a bubble full of debts and inflated assets. The system has been “successfully” manipulated for decades by central banks, certain commercial banks, the BIS in Basel and the IMF for the benefit of a small elite. Read More
In their latest report on commodity prices, French bank Natixis outlined why precious metals have a strong couple of years ahead of them as the U.S. economy slows. According to an article on Kitco, the report states that after a remarkable year, the dollar will finally begin to trend lower as the Fed puts the brakes on its tightening cycle. Read More
Maybe you suspect a bear market will start because the bull market has run on too long. Question One—is there a “right” time a bull market needs to last? No! There is no “right” length for a bull market. As bull markets run longer than average in duration, there is normally a steady stream of folks who say a bull market must end because it’s too old. (Read more on this phenomenon in Markets Never Forget.) That isn’t right. They all end for their own reasons and will end eventually—but age isn’t among them. People started saying the 1990s bull market was too old in 1994, only about six years too soon. “Irrational exuberance” was first uttered in 1996—again, way too early. Bull markets can die at any age.
A few days after we reported that the investment vehicle of Sweden's most powerful family, the Wallenbergs, has begun preparations for the next global crisis, concerns about the future have spread to one of China's largest state-backed asset manager which runs about HK$139 billion ($18 billion) in assets, and which said it was preparing to sell shares in as many as 30 stocks on concern that valuations worldwide have peaked. Read More
Ten-year Treasury yields jumped 13 bps this week to 2.48%, the high going back to March. German bund yields rose 12 bps to 0.42%. U.S. equities have been reveling in tax reform exuberance. Bonds not so much. With unemployment at an almost 17-year low 4.1%, bond investors have so far retained incredible faith in global central bankers and the disinflation thesis.
The living symbol of Smokey Bear was a five-pound, three month old American black bear cub who was found in the spring of 1950 after the Capitan Gap fire, a wildfire that burned in the Capitan Mountains of New Mexico. Smokey had climbed a tree to escape the blaze, but his paws and hind legs had been burned. Local crews who had come from New Mexico and Texas to fight the blaze removed the cub from the tree.
RATE AND REVIEW this podcast on Facebook.https://www.facebook.com/PeterSchiff/reviews/Look Carefully at the Price IndexThe GDP number came out yesterday; 3/5% did slightly beat the consensus of 3.3%, but remember, for a while the Atlanta Fed was looking for a print in the 4's. But the New York Fed was at 2.2%, so the print was much higher than ...…
To present a methaphor, under Title I FISA authority, Carter Page was essentially ‘patient zero’ in an Ebola pandemic. Labeling him as a foreign agent allowed the FBI to look at every single person he came in contact with; and every single aspect of their lives and their activities in growing and concentric circles; without limits to current time or historic review.
The online battle royale game Fortnite: Battle Royale parodies Smokey and his motto in a loading screen featuring Cuddle Team Leader, a woman dressed in a teddy bear costume replacing Smokey and doing his signature finger-pointing pose. Below her is the message "Only YOU can prevent V-Buck scams", warning players not to risk security compromises by attempting to obtain free virtual currency offered by hackers as bait.
Mr. Grant’s television appearances include “60 Minutes,” “The Charlie Rose Show,” “CBS Evening News,” and a 10-year stint on “Wall Street Week”. His journalism has appeared in a variety of periodicals, including the Financial Times, The Wall Street Journal and Foreign Affairs. He contributed an essay to the Sixth Edition of Graham and Dodd’s Security Analysis (McGraw-Hill, 2009).
The above chart may not seem like a big deal to some but keep in mind the United States had never witnessed a year over year drop in nationwide home prices since the Great Depression. Not only has that been surpassed but home prices are now back to levels last seen 8 years ago. The lost decade is now nipping at our heels but what about two lost decades like Japan?
Peoples’ enthusiasm is understandable: From 1965 to 2017, Buffett’s Berkshire share achieved an annual average return of 20.9 percent (after tax), while the S&P 500 returned only 9.9 percent (before taxes). Had you invested in Berkshire in 1965, today you would be pleased to see a total return of 2,404,784 percent: an investment of USD 1,000 turned into more than USD 24 million (USD 24,048,480, to be exact). Read More
The economies of the world are at an inflection point. Enough data points have now presented themselves to be able to see the outlines of a major shift in the markets of the world. We are at a pay attention moment. There comes a time when a successful investor must make some hard decisions to position himself to be able to take advantage of opportunities down the road. The markets are telling us now is such a moment.
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25.32% per year. These returns cover a period from January 1, 1988 through November 5, 2018. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
First, ours is an old and over-extended bull market, one that has been pumped up by truly massive Fed infusions of capital into big banks so that they could become solvent again and even buy stocks so that there will be “trickle-down” to the overall economy and the wealthy. Now the Fed wants to withdraw from its position as “sugar-daddy”. The Fed’s new resolve is clearly bearish for the market. How can it not be?
Given how these things normally work, I’d imagine there will be a few false scares and then a tipping point at which there’s an identifiable panic. I would think that would be caused either by a few significant inflation surprises, or something more dramatic that I haven’t thought of (perhaps a big buyer of US Treasuries really does turn around and do something unexpected).
Microsoft Corporation (MSFT - Free Report) develops, licenses, and supports software, services, devices, and solutions worldwide. The company has a Zacks Rank #1. In the last 60 days, 15 earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings increased 7.3% in the same period. The company’s expected earnings growth rate for the current quarter and year is 14.3% and 9.5%, respectively.
For me, this is the most important part of George’s new economics. The entrepreneur must know that if his product or service succeeds at the market, it won’t be regulated out of existence. And the profits will not be taxed away. If he doesn’t have that assurance, the likelihood of turning his idea into a product or service is greatly diminished. That results in less entrepreneurial creations, which means less knowledge and wealth in the economy.
By the end of the bear market, households’ financial asset holdings as a percentage of their total assets fell from 68% to 62%, while monetary assets as a percentage of total financial assets rose from 19% to 26%. On balance, households sought the greater security from tangible real assets, primarily housing, while adjusting their financial asset holdings principally away from stocks and toward the safety and liquidity of monetary assets.
I have my doubts about the sustainability of growth in the US because of the rising debt burden and anemic growth in productivity and the working age population. With these headwinds, I believe it will be almost impossible to achieve sustained growth, like what we experienced in the 1990s. However, I concede that growth could continue to rise over the next 2–3 years.
Jim, I have so much been looking forward – ever since we launched this podcast two years ago with Jim Rogers, actually, as our first guest – I’ve been looking forward to getting you on the program. And, frankly, I’m glad it took this long because I don’t think there’s ever been a more important time in the last ten years to be very closely observing interest rates.