Gold Investment Stocks » investment

Gone A.W.O.L. – lite blogging

admin — Sun, 27 Feb 2011 17:43:32 +0000

I will find myself in England, Switzerland and Slovenia over the next week, catching up on a few existing relationships and exploring a number of new ones. Blog posting will be slow (and totally absent on some days) while I am on the road. The normal blogging service will be resumed on my return to Cape Town by March 7.

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Gone A.W.O.L. – lite blogging

How To Investing In Gold Bullion | CARDIOBEAMSERVICES

admin — Thu, 17 Feb 2011 21:52:04 +0000

Holding at least a small percentage of your stock portfolio in gold bullion is always a good idea. The relatively stable price of gold can help insure your investment portfolio against economic instability. Gold bullion prices may …

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How To Investing In Gold Bullion | CARDIOBEAMSERVICES

How Savings and Investment Increase an Economy’s Output

admin — Mon, 14 Feb 2011 18:00:22 +0000

Everyone who has held a job and a bank account understands the potential benefit of postponing consumption today in order to enjoy greater consumption in the future. However, many people — if pressed — would explain this increase in saver’s income by an offsetting reduction in the income of a borrower in the economy. This is certainly a possibility. For example, if Bill (the borrower) forgets his lunch money on Monday, he might ask his coworker Sally (the saver), “Can you lend me $10 and I’ll pay you back $11 tomorrow?” If Sally agrees, then it is clear that her $1 in interest on the personal loan was paid out of Bill’s reduced income for that month. In other words, if Bill’s take-home pay that month were $5,000, then he would actually only have $4,999 to work with, because of his $1 expenditure in “buying a loan” from Sally. At the same time, if Sally’s normal paycheck were also $5,000, then this particular month she would actually have $5,001 to work with, after earning $1 in providing “lending services” to Bill. In the scenario above, what basically happened is that Bill financed his consumption with an “advance” made by Sally. On the Monday morning is question, …

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How Savings and Investment Increase an Economy’s Output

Market Wrap-Up for Jan.26 (ROK, BA, COP, ABT, DD, more)

admin — Thu, 27 Jan 2011 04:11:30 +0000

I’m sure most people could have written the script we heard last night on what the U.S. needs to do to turn things around. The problems are obvious (lack of jobs), but the solutions are not. Unfortunately the problem with politicians is that most of the time, they recant the issues we already know – get the standard applause when they say things need to change – but rarely offer up any solutions. I find it fairly comical how the mood shifts occur and all of a sudden what the President is saying is good for the market. I’ve got news for everybody: the market already expected what the President was going to talk about. Folks, we have gone from Dow 6600 to Dow 12,000 in a matter of 20 months. What, you didn’t think the President would get business-friendly? I have never met a politician that hasn’t changed his/her stripes to get on the right side of the track when their political career is on the line. If you toughed out the bear market by just putting capital into names that were still on our recommended list at the time, your returns would be unbelievable right now. Despite the recent rally, we are still looking for more buying opportunities going forward. The job of putting capital to work never stops and neither does our job in finding the best dividend stocks for your investment portfolio. I remember my baseball coach yelling at one of the kids at our team that loved to get on base by just watching pitches and walking. If you don’t swing the bat, you’ll never know how special a player you can become, and that holds true for investors too! Sitting in cash is the equivalent of just taking walks. Don’t worry about getting an uptick the minute you buy shares, or waiting for that magical perfect entry point. Just get back in the game already! Speaking of swinging the bat, we added two new names to our recommended list today (there have been a total of six new names added this week). Be sure to check the link below for the names in case you didn’t read the e-mail alert we sent out earlier. The markets briefly touched over Dow 12K on the back of the State of the Union euphoria as well as the Federal Reserve deciding to leave rates once again (certainly …

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Market Wrap-Up for Jan.26 (ROK, BA, COP, ABT, DD, more)

Gold Investments: Why I Jumped in and Bought Twice this Week

admin — Wed, 26 Jan 2011 10:24:04 +0000

How easily we forget— gold bullion started 2010 at a price of $1092 per ounce. It ended 2010 at $1422 an ounce for a one-year gain of 30%. What other investment returned 30% last year? Gold stocks , of course, did even better, …

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Gold Investments: Why I Jumped in and Bought Twice this Week

What are asset allocation numbers telling us?

admin — Sat, 15 Jan 2011 15:30:56 +0000

What do the AAII Asset Allocation statistics tell us about stock market turning points? Where are we at the moment?

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What are asset allocation numbers telling us?

Propping up the U.S. economy, with Stephen Roach

admin — Sat, 15 Jan 2011 15:00:40 +0000

In the two video clips in this post, Stephen Roach of Yale University and Morgan Stanley shares his views on aspects of the U.S. economy and financial markets.

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Propping up the U.S. economy, with Stephen Roach

Managing multi-speed markets, according to Mohamed El-Erian

admin — Sat, 15 Jan 2011 14:30:12 +0000

A 2011 market outlook, with Mohamed El-Erian, CEO and co-CIO of Pimco.

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Managing multi-speed markets, according to Mohamed El-Erian

Don Coxe webcast – updated (January 14, 2011)

admin — Sat, 15 Jan 2011 14:01:40 +0000

Don Coxe has updated his popular webcast on Friday, January 14, 2011. Click through for the recording …

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Don Coxe webcast – updated (January 14, 2011)

U.S. Federal Government Budget: Latest Numbers and Tally of Stimulus Package

admin — Sat, 15 Jan 2011 13:15:57 +0000

Although economic activity is improving, the U.S. economy remains on artificial support.

Where have investors been placing their bets over the past year?

admin — Sat, 15 Jan 2011 12:00:25 +0000

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.While the global financial crisis that reared its ugly head in mid-2007 is by no means dead and forgotten, we have fortunately seen a very strong recovery in equity prices since the March 2009 lows. “Although the MSCI World Index and

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Where have investors been placing their bets over the past year?

The Fed Blows a Cupcake Bubble

admin — Fri, 14 Jan 2011 01:21:50 +0000

The number one cupcake play in America is going public. Crumbs Bake Shop operates 34 cupcake stores from New York to California, humorously billing itself as “creator of the gourmet cupcake.” Owners stand to make up to $100m from the IPO, and the deal could price higher, with cupcake-mania hitting a fever pitch. At $100m, investors would be paying about $3 million per cupcake store.� Management is betting on aggressive expansion to fuel growth, and plan to open hundreds of new stores. Naturally, growing a chain of stores from 34 to 300 is no easy task. Recall the great donut bubble of 2003… Krispy Kreme (NYSE: KKD) was the darling of Wall Street. Its shares peaked at near $50 from a split-adjusted IPO price of $3.50, giving the donut maker a sky-high valuation of $3b (pdf). Shares trade around $7 today, up from a low of around $1. KKD expanded too fast, took on too much debt, and nearly went bankrupt. They also had some accounting issues, but those likely were probably just a side effect of a business-plan gone bad. Today Krispy Kreme is still muddling along, closing stores opened just a few years back. Expansion is always risky — especially when financed with debt and equity offerings. Hopefully Crumbs can avoid a similar fate, and follow the glorious path of Chipotle instead, which is up 436% since its IPO in 2006. In any case, I wish them well; I’ve heard their cupcakes are delicious. The larger point here is about what this cupcake IPO says about the state of markets. After all, it almost certainly wouldn’t be happening without all that Fed-injected liquidity sloshing around. Back in July 2008, The Onion published a prescient piece titled, “Recession-Plagued Nation Demands New Bubble to Invest In”: What America needs right now is not more talk and long-term strategy, but a concrete way to create more imaginary wealth in the very immediate future. Congress is currently considering an emergency economic-stimulus measure, tentatively called the Bubble Act, which would order the Federal Reserve to begin encouraging massive private investment in some fantastical financial scheme in order to get the nation’s false economy back on track . Even Jonathan Swift would have to appreciate satire so pointed. Unfortunately, the bit reads a lot like a Fed policy statement. Change the title to “Encouraging Risk Investment During Recession,” and any good Fed economist would nod along in agreement. The sentiment is identical. Bernanke has often stated that he wants to create a “wealth effect.” Push stocks higher, the theory goes, and people will spend more because they feel richer. Long-term thinking, truly… It’s been two and a half years since the Onion piece was written. Not only did we get one bubble; we got a handful of them. Notably in commodities, metals, food prices, and treasury bonds. Malinvestment and moral hazard ride on in 2011 One of the nastier side effects of “easy money” policies is known as malinvestment . It almost sounds harmless… mal- investment ( mal = bad). After all, everybody has a loser every now and then, right? The problem with easy money is that it inevitably spurs not just bad, but dangerous investments. During the tech bubble, it was countless doomed tech IPOs. In…

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The Fed Blows a Cupcake Bubble