Environmental Issue

Compassionate money-makers 03-15-10

Market Update
March 15, 2010
 
Short-Term Key: Negative
Long-Term Key: -78.5 (Neutral to Negative)
 
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Inside this week's update...
 
***** The world of tomorrow is a world of less.
***** Focusing on the important things, and making money from them.
***** 6 compassionate, long-term stocks.
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The U.S. economy now shows clear signs of growth. Most likely, U.S. growth will exceed 3% for this quarter and the next one as well.
 
However, the second half of this year doesn't look quite as rosy.
Read more...

Market Update 03-15-10

Market Update
March 15, 2010
 
Short-Term Key: Negative
Long-Term Key: -78.5 (Neutral to Negative)
 
-------------------------------------
Inside this week's update...
 
***** The world of tomorrow is a world of less.
***** Focusing on the important things, and making money from them.
***** 6 compassionate, long-term stocks.
------------------------------------
 
The U.S. economy now shows clear signs of growth. Most likely, U.S. growth will exceed 3% for this quarter and the next one as well.
 
However, the second half of this year doesn't look quite as rosy.
Read more...

The top asset class to buy today 02-16-10

Short-Term Key: Negative    Long-Term Key: -85.5 (Neutral to Bearish)
 
Chinese New Year began two days ago and marked the start of what Chinese astrologers call the “Year of the Metal Tiger.” In light of this, we have decided to review some of the major investment themes for the months ahead.
 
First among these themes, we now feel you should regard precious metals – and especially gold – as an asset class unto themselves. Over the past 40 years (and especially the last 10), they have proven themselves to be important holdings in good times and bad. By good times, we mean periods of inflation and growth. By bad times, we mean deflation and recession.
 
Admittedly, gold does lose its value as an asset class during the very best of times, such as we had from the early 1980s to the late 1990s. Unfortunately, those days are not likely to return. Instead, we will likely see cycles of inflation/deflation from now on, in which gold shines.
 
Naturally, your gold portfolio should be diversified to maximize safety and growth.
Read more...

Market Update 02-16-10

Short-Term Key: Negative    Long-Term Key: -85.5 (Neutral to Bearish)
Read more...

Market Update 12-15-09

The rally in the U.S. dollar is back in force today, with the Dollar Index climbing to its highest level since early October. Given how far it has fallen since March, a rally up to its 50-day average—about 2 percent from here—is certainly a possibility. At first blush that doesn’t seem like all that much, but for currencies, such a move in a relatively short span of time is a big deal.
 
The inverse correlation between the dollar and stocks has been extremely high during the past year, so a rising dollar is frequently seen as bad news for equities as it sends the so-called carry trade to the sidelines. Regardless of the dollar’s moves in the coming weeks, the market is likely to trade in a relatively tight range. Technicians see the 1120 area on the S&P as stiff resistance where stocks will likely stall. Likewise, absent some external shock, downside risk in the near term is also likely to be rather muted. Looking on a somewhat longer time horizon, however, there’s ample reason for concern.
 
This morning we had a much worse-than-expected reading on producer prices, signaling that inflation could be back on the table sooner than most would like to admit. At the same time, we also had a surprisingly weak reading on the New York Empire Manufacturing Index of general business conditions.
Read more...

Safe and Sound

Good for all: protecting the U.S. and finding financial security, too

 
From locusts to the Black Plague to the endless clash of armies, the world always has been rife with risk and danger. Still, it’s not being egocentric to argue that today’s world is more vulnerable than ever before to disaster, both natural and manmade. Concurrently, we’re also obsessed as perhaps never before with seeking protection against catastrophe.
 
Sept. 11, 2001, of course, ratcheted up our awareness of one type of disaster, terrorism, in a big way and made security a front-burner issue. Recent events like the tragic bombings in Madrid have reinforced such concerns. But Mother Nature also has been serving up her own brand of terrorism in recent years, inflicting massive damage, from record heat waves to record floods.
 
A major reason today’s world is peculiarly vulnerable to onslaughts of all kinds is relentless urbanization. The first chart on p.2 shows changes in the numbers of city dwellers, on both a percentage and absolute basis. In 1960 only about a third of the world’s three billion residents lived in metropolitan areas.
Read more...

Mid-Week Update 06-24-09

As the market begins to roll over, it becomes increasingly important to protect your portfolio. Of course, we advocate holding precious metals, like gold, that will hold their value in both inflationary and deflationary times – but some well positioned stocks should remain cornerstones of your portfolio as well. This type of company should boast a fundamentally stable business and a dividend stream to cushion investors in tough times, but also an element of growth that rewards investors in better times.

In the current market, some utility companies fit the bill. Withthe Obama Administration and the Federal Reserve pulling out all the stops to keep interest rates low, and many utility yields look attractive at current levels. Add in that a market pullback will likely initiate a flight to safety, and selected utilities could also offer substantial capital appreciation.

We don’t recommend going out and buying utilities at will, however, as all are certainly not created equal. Most will provide nice income streams, but the growth of that stream is largely tied to regulated rate increases. As we enter an exceptionally inflationary era, with interest rates rising (at some point), we point you towards those utilities that have an element of growth, so they can not only grow earnings – but grow their dividend payments as well, giving you a positive return in real terms.Read more...

Market Update 06-08-09

Short-Term Key: Negative        Read more...

Market Update 08-06-08

50th anniversary of the Helsinki Olympic Games...

Image via Wikipedia

Volume 5, Number 32 

August 6, 2008 

Walk into the Federal Reserve's headquarters on Constitution Avenue in Washington, DC and you'll spy a two-story atrium with dual staircases and a skylight with the outline of an eagle in the glass. Perhaps it's time for Ben Bernanke to replace that noble national symbol with a difference sort of bird: One with the body of a hawk and the head of a dove.Read more...

WHAT IF EVEN OPEC RUNS OUT OF OIL? 05-12-08

Doing the right thing for the wrong reason may seem like an okay plan, but it can backfire. The risk is that once the false reason is exposed, the right thing won’t be done.

The example I’m thinking of is the issue of global warming. Over the past decade, the threat of global warming has become increasingly accepted by mainstream society.

Of course, it has its critics, including those industries that would pay the cost of trying to reduce greenhouse gas emissions. On the other hand, several studies have recently appeared in prestigious journals such as Science and Nature which suggest global warming could take a lot longer to occur than previously thought. It could be delayed, in fact, by an additional 20 years. Although no one can say for certain exactly how long it will take, the high temperatures of the late 1990s might not be surpassed until 2030. Other findings that complement these studies suggest that the deep oceans are actually getting colder, not warmer.

To us, it has always seemed rather arrogant for science to assume it can know what the climate will be like 100 years from now, when it can’t even predict next month’s weather with any degree of accuracy. The complexity and number of variables involved in this kind of forecasting are too enormous.

This is not to say we are against the idea of a clean environment. But the case for immediately stopping all CO2 emissions is far from conclusive.Read more...