Categories

Login Status

You are not logged in.

Polls

Is Facebook overvalued at $40/share?

View Results

Loading ... Loading ...

Calendar

September 2009
M T W T F S S
« Aug   Oct »
 123456
78910111213
14151617181920
21222324252627
282930  

Interesting dislocation this AM for the market

Being cynical, we firmly believe that the stock market is not a free market but quite manipulated by the major players. Goldman Sachs, Fed, Government policies and other big players DO work together to assure a stable financial market. So the question is, what will they do next? One, they can let Citi fail, cause a panic in equities and let it have the correction it needs. The benefit would be interest rates could be kept low (helping housing data) and the dollar would strengthen. Both of those are needed at this time. Or, they can rescue Citi, keep devaluating the dollar and support the equity market. The harm of this would be that interest rates will creep up and the dollar would fall further. […]

Gold, safe and cheap

With the equities market at these levels, evaluation are just silly. Many companies are priced at 30 to 50X earnings potential for 2010. Interest rates have remained low, an amazingly dropping. Economic data again shows how severe this downturn has been and is. The only given is that everyone worldwide in printing new fresh crispy currency at a rate 100,000 times faster than Gold can be mined. This is such as easy call to make; it’s time to have a nice chunk of your portfolio in gold. […]

US Stock Market up beat

It’s amazing how many sheepos are willing to drink the kool Aid. The stock market has not had a run like this sense the last Great Depression, 1939. Yet, people just don’t learn. What is happening is exactly what had been predicted. When the economy collapsed back in 2008, billions were transferred from taxpayers to the ultra wealthy to maintain the system while all equities sold off. Now, the ultra wealthy are buying up everything again at a discount while the masses are losing their jobs and employment. There is no sign that the economy is really recovering, just lots of hype and printing of money. But, be alarmed, this market cheats! The fact that it is up high today in front of Tuesdays and Wednesdays economic data might indicate that we are about to get much better numbers than estimated. […]

Lots of economic data this week

After this week, we will have a much better sense of where the economy is heading and if the recovery has reach mainstream. On Monday, the Case-Shiller Housing Price Index will provide a look into the cost of the house and if we are reaching a bottom. Tuesday is the big day, with GDP number and ADP unemployment. Both of those can be market movers. […]

US Market about to tip over

Either way, gold and fixed assets are the safest investments the next 3 to 6 months. No point on overpaying for stocks that is ridiculously overvalued. So many companies are technically insolvent and worthless, yet, they are trading like they are the greatest IPO to ever hit the market. […]

Gold, safest investment today

On September 11, we wrote how gold might have broken $1,000 for the last time. So far, Gold has not closed a day below a 1,000 USD. We still believe that it is greatly undervalued from a demand supply side. In fact, we see gold as the next natural bubble. There are many reasons for this; currencies creation is far outpacing the mining of gold, the cost of mining the metal will get priced to the floor created by this asset inflationary fed policy period, China diversifying to gold reserves might start a trend leading to other countries to follow, and talks of war with Iran will surely rattle the markets. http://www.alphasedge.com/stock-market-news/gold-breaks-1000-usd […]

US Economic Policy, Inflate

The problem with all this will come decades from now when inflation kicks in. It will be 10 years before we start to experience hyper inflation. This number was not pulled out of thin air; it is based on long term oil contracts written in dollar terms. China and USA both have 10 year contracts to receive millions of barrels of oil at a ridiculously low cost. As long as oil is cheap, global inflation can be kept in check by Fed and Gov manipulation. However, when supply strains are real, there is no manipulation that can save the day, you either pay more or be without. […]

New Wall Street Tax

Every trader I know is talking about a new tax proposed on Wall Street transactions. This new tax is said to be in-between 0.1% to 0.25% on every trade and will net 125 to 250 Billion per year in new revenue for government. As an individual investor, I welcome this tax IF and only IF three conditions are met. […]

Market outlook 2010, shut up and listen

Get your mothers tampons out of your ear and perk up those bad boys for some real economic outlook. What I’m about to tell you no one else in the game will. If you are one of the few to happen to get lucky and read this economic epiphany, better thank your lucky stars. This is not a prediction, but a common sense outlook for the global economy and US equity markets. […]

Whoop there it is, LEN

This morning, LEN was down to $15.24 a share, a 12% drop from Friday’s average value. The cause of the move was the $171.6 million, or 97 cents a share, on revenue of $720.7 million for the third quarter ended Aug. 31. No doubt, Wall Street is finally realizing that there isn’t a big enough housing industry left to maintain all of the homebuilders from the peak market in 2006 at same evaluation levels. Either some major homebuilders will need to go bankrupt or investors will have to be content with decades of lagging profits from homebuilders. […]