Tag Archives: stock market

How You Can Make Serious Money When Markets Go Down

If you’re only buying stocks – or options, or any security – hoping they will increase in value, you could be missing out on a lot of profits.

Markets move up and down – you know this because on the down days, you feel it right in your wallet.

But it doesn’t have to be that way.

Yes, shorting, like most things in trading, can be both risky and complicated. But it doesn’t have to be. And contrary to what many novice traders think, it’s certainly not “off limits” to ordinary investors.

Today I’m going to show you an easy (and possibly very profitable) way to play the markets when you think they’re about to head south.

An Easy Way to Go Short

When I’m bearish and want to bet stocks are headed lower, I generally like buying inverse exchange-traded funds (ETFs) based on the major market indexes.

ProShares Short Dow 30 (NYSEArca:DOG) for the Dow Jones Industrial Average, ProShares Short S&P 500 (NYSEArca:SH) to short the S&P 500, and ProShares Short QQQ (NYSEArca:PSQ) to bet the Nasdaq is headed lower.

If I’m extremely bearish, and I believe stocks are going to fall hard today or tomorrow, I’ll sometimes buy a leveraged short inverse ETF like the ProShares UltraPro Short S&P 500 (NYSEArca:SPXU). The UltraPro Short S&P fund is a “3x leveraged” inverse ETF. That means if the S&P 500 goes down 1% today, SPXU would go up 3% today.

But this is important: Leveraged ETFs are only meant as short-term trading vehicles. That’s why I said “if I believe stocks are going to fall hard today or tomorrow.” Because of the way leveraged ETFs are priced, they’re “re-set” every day – they’re not good long-term holds.

In a perfect world, if your conviction is right and you buy a leveraged inverse ETF and stocks go down right away, and they keep going down for multiple days in succession, you’ll be a very happy camper.

I’m not greedy. If I have a straight run for a few days holding an inverse leveraged ETF, I’d take my profits as soon as I think the sell-off is over.

I wouldn’t wait another day, I’d ring the register and be happy. If I own an unleveraged inverse ETF like DOG, SH, or PSQ, I’d probably use a 5% to 10% stop to get out if the markets rallied. If you take small losses, you can get out and figure out where stocks are going and get back in if your timing was off but you think they’re going down again.

Now let’s look at one of my favorite plays: money…

Here’s the Trade for When Gold and Currencies Tank (or Skyrocket)

There are lots of leveraged gold ETFs. Here are some of my favorites. Just remember what I said about holding any leveraged ETF: they’re very short-term trading vehicles.

Another way to “leverage” gold on the upside (betting bullion is going higher) is to buy miners. Mining stocks move up a lot faster than gold itself in an up-trending gold market.

Currencies are a little bit different, but it’s not hard to trade their moves up or down. Don’t forget, you can’t just short one currency – all currencies are “priced” in terms of another currency, so they always trade as a “pair.”

If you think the euro is going down relative the U.S. dollar, you can actually sell short the CurrencyShares Euro ETF (NYSEArca: FXE). If you want a leveraged (2x) way to bet the euro is going down relative to the U.S. dollar, you can buy a popular inverse leveraged euro/dollar ETF, the ProShares UltraShort Euro (NYSEArca:EUO).

There’s another popular way to hedge and play downturns in the market, but it’s trickier than it looks. Still, done right it can lead to some big profits on the short side.

How to Buy and Play the iPath Hedges

I’ve got nothing against VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca:TVIX), if you get into it and the move you expect, a dramatic drop in prices and a spike in volatility, happens right away.

But here’s that tricky part I mentioned.

It’s a leveraged ETF – so if you don’t get a sustained move down pretty soon after you buy it, and you sit with it a few weeks, or worse, a few months, it loses its value quickly. Bottom line, it’s a leveraged ETF and great if you get the timing right, get in, and get a sustained move in your direction.
I’m not a huge fan of the iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca:VXX), either, because it’s based on VIX futures.

VXX is thought of as an ETF, but it isn’t. ETFs have their own supply and demand dynamics and their own bid-ask spread dynamics. But it’s based on two sets of futures that have their own “valuation” dynamics based on rolling first- and second-month futures contracts.

VXX is actually an exchange-traded note (ETN), not a fund. It’s actually a derivative, which adds up to a lot of moving parts and is hard to arbitrage and “value” properly.

But if you’re going to use VXX, I’d suggest you add a one-quarter dose of it to whatever other protection you have on. Just keep in mind, if markets settle down and stocks flatten out and go sideways, the VIX and VXX will drop a lot quicker than non-leveraged inverse ETFs you might have on for protection.

My favorite way to play a spike in volatility is to buy calls on the actual VIX.

When I’m playing options, I generally like to buy options three to six months out. I always prefer further out options because it gives me more time, but you have to weigh the time against the higher price or premium you have to pay for them.

That’s why I look three to six months out and incorporate how much volatility I expect over that three to six months. If I expect a spike in volatility sooner rather than later, I’d opt for the cheaper, near-term options. If I run out of time but I still think I’m right, I’ll roll into the next three months out options.

In a perfect world, if you knew the move you expected was going to happen in a couple of weeks and last a week or two, you wouldn’t waste money buying further out options and pay for time you wouldn’t need.

But… it’s not a perfect world and I’m very often right, but I can get stung because my options expire and I hesitate rolling out to the next few months and get sick when the move I expected all of a sudden happens and I’m not in the trade.

That’s the worst feeling in the world, but you won’t have to sweat it with this strategy.

Wall Street Insights & Indictments

WITH SHAH GILANI

Here’s Who Killed the American Middle Class – and Why

The proof is in the pudding.
I thought this article is quite interesting in explaining the declining of democracy in U.S.A; and the condition of the middle class who have been reduced to poverty by the very politicians who they elected for their well being.
So who were the Republican and Democratic politicians behind the wholesale transformation of America, and where are they now?
Well…..
Here’s Who Killed the American Middle Class – and Why
By SHAH GILANI, Capital Wave Strategist, Money Morning • @WallStreet_II • May 23, 2017
There’s a widening wealth gap in America. It took a generation, but the middle class in this country has been hollowed out. Most people agree on that. But they don’t really know how it happened or who’s really to blame – it’s been obscured with false narratives, covered with “fake news.”
The thing is, the truth is in front of us. We’re living it in real time. It’s just never discussed openly – for a reason.
The people who are behind this catastrophic American collapse have fooled folks into thinking this is all normal.
Well, it’s anything but that…
Who to Blame for the Disappearing Middle Class
Republicans aren’t to blame: Their old-school platform of a smaller federal government, fiscal conservatism, more power to the states, and belief that a lightly regulated path to working hard and standing on your own two feet is what made America the global bastion of entrepreneurship and helped create a middle class that is laudable and fair.
Democrats aren’t to blame: Their old-school platform of a larger, more interventionist federal government, spending on social programs, supporting and safeguarding workers, all kinds of civil rights, protections for the environment, and their belief that government should stand behind those not able to stand on their own two feet, or who have been trampled by runaway businesses, helped create a middle class that is equally laudable and fair.
The two parties, with their visions and flaws balanced by democracy, made America great… once.
What happened is greedy, neo-con, profiteering Republican crony capitalists hijacked their party, while greedy, limousine liberal, profiteering Democrat crony capitalists hijacked their party. Together, as a new class of elites joined the Masters of the Universe, they began manipulating state apparatuses and banking for fun and profit…
A lot of profit.
The crony capitalists’ principal enrichment tools are “financialization” and, as we’ll see a little later this week, its manservant, “globalization.”
Financialization is the retooling of the economy’s production and distribution assets, consisting of made-in-America goods and services, into credit-driven banking and financial services products.
At its core, financialization is the transfer of low-risk, low-profit debt into high-risk, high-profit products.
The net result of the mass commodification of debt-based financial instruments and leveraged debt (grossly under-collateralized by low-risk debt) is rampant speculation.
This heavy betting, however, isn’t undertaken just for the sake of pyramiding risks for speculative gains. These so-called “products” are now integral and necessary investment tools because traditional, safe investments don’t yield adequate returns in the world of financialization.
According to the U.S. Bureau of Economic Analysis (BEA), in 1980, financial services contributed 4.9% to the country’s GDP. At its peak in 2006, that contribution had almost doubled to 8.3%.
More to the point, in terms of profitability, James Kwak, law professor at the University of Connecticut, calculated in 1980 the financial industry’s profits as a share of total U.S. business profits was 7.5%. That share of all business profits in corporate America jumped to more than 41% by the mid-2000s.
U.S. GDP in 2016 was $18.56 trillion, according to the BEA. In full view of financial services’ share of GDP (which is rising again) and its share of corporate profits (also on the march to new highs), it’s impossible not to see the financialization of the U.S. economy.
Worse, it’s actually become the beating black heart of the economy. It’s happening that way by design…
How the Financialization Scam Became Settled Public Policy
The road to financialization began with the overturning of longstanding public and economic protections, starting with the Depository Institutions Deregulation and Monetary Control Act of 1980, a Trojan horse that let banks establish holding companies and gave the Fed more power over more banks.
That major deregulatory action was followed quickly by the Garn-St. Germain Depository Institutions Act of 1982, which leveled the playing field for banks and their holding companies experiencing competitive disintermediation and decreasing profitability.
Ultimately, a series of subsequent rules- and regulations-trimming by banks’ congressional cronies culminated in the Gramm-Leach-Bliley Act of 1999, whose main function was the total repeal of the Depression-era Glass-Steagall Act that had for decades separated insured, deposit-taking commercial banks from swashbuckling investment banks.
That’s how elitist Democrats and Republicans paved a super highway for the financialization of the American economy and their enrichment from the country’s transformation.
So who were the Republican and Democratic politicians behind the wholesale transformation of America, and where are they now?
You’d be shocked at how many of them you know as senators, House members, cabinet secretaries, principal regulators… Supposed stalwart guardians of American prosperity who’ve become filthy rich at the expense of the middle class, on whose backs and from whose labor and savings they’ve enriched themselves (and their reelection war chests). I’ve written thousands of pages in Insights and Indictments naming names and calling these sellouts what they really are: crony capitalist pigs.
The proof is in the pudding.
Actually, make that pooling.
Without financialization, we never would have had the subprime mortgage crisis and the market and financial system crashes.
I’ll show you how.
Home mortgages used to originate “locally,” with banks, thrifts, and credit unions that knew their communities, as well as the value of properties and creditworthiness of borrowers in those communities. Mortgage loans mostly stayed on the books of lending institutions until maturity or until properties were sold.
That was great for stability and fairness, and making sure things remain sustainable… but the trouble was, no one got filthy stinkin’ rich on it…
Financialization, with its cheap come-on capital, its dodgy pooling techniques, its structuring, its tranches, derivatives and synthetic derivatives of derivatives, turned a utility service into a speculative pyramid of leveraged loans that looked and acted more like a Ponzi scheme than the sophisticated, high-yielding, safe (a lot of them packaged with government approval and guarantees) financial instruments they were made out to be by rating agency co-conspirators.
We all know how that ended.
Thing is, it didn’t actually end there. How could it have? As horrific as the financial crisis was, as much wealth was vaporized, there was still lots more blood to drain from the middle and working classes – and their children.
A Bad Idea Gets Much, Much Worse
That bloodletting comes in the pooling of student loan debt. If anything, it’s even more sickening than the financialization of mortgage debt.
As if leveraging the living daylights out of the American dream of home ownership wasn’t enough, the financial vampires of the political class saw an opportunity in that other great American dream: higher education – the burning desire of people to better their lot and improve their wages and prospects at colleges and universities.
What happened to professors’, administrators’, state schools’, and private schools’ goals of helping Americans get a higher education for the fair wages they earned and the balanced budgets they hoped to achieve?
As horrific as the financial crisis was, as much wealth was vaporized, there was still lots more blood to drain from the middle and working classes – and their children.
They got greedy. They’re all in the big for-profit game now, thanks to financialization.
Hopeful students are suckered into cheap loans which are, of course, pooled, leveraged, sliced, diced, and sold to investors. The cash those investors fork over can be used to make more loans, to pyramid (or Ponzi, if you choose) students’ hopes and dreams that a higher education means a higher standard of living.
And if those loans are in arrears, in default, and don’t get paid back – hey – investors don’t have to worry.
The government, which is to say crony capitalist congressmen and women, have fixed that potentially profit-leaking hole.
You see, making student debtors “low risk” by having the state guarantee payment of interest and principal to investors – while extracting more payment from grossly indebted students (plenty of whom never graduate), no matter the cost or the poverty level of those beleaguered, unemployed, underemployed, and generally struggling indebted borrowers – means that more loans can be pushed like dope to the uninitiated who have no idea about the trap they’re being lured into.
And as for the neo-liberal educators and liberal arts universities who want more kids – customers – to get a better education, they’re making hundreds of thousands of dollars in salaries and tens of millions of profits every year.
That’s financialization at work.
It’s not at work alone. Later this week in my Insights & Indictments service, I’m going to show you how globalization is taking these crony capitalist schemes big time, as in, worldwide, trapping billions in a state of permanent poverty. Click here to get my update as soon as it’s released, and you’ll get all of my Insights & Indictments research, too – free.
Together, we’ll play the crony capitalists’ game while working to destroy it.
Follow Shah on Facebook and Twitter.

10 Best Stocks for 2014 Keep Soaring

A look at where our experts stand at 2014’s halfway point    –                      http://investorplace.com/2014/07/10-best-stocks-2014-q2

By Jeff Reeves, Editor of InvestorPlace.com  |  Jul 1, 2014, 2:05 pm EDT

Now that we are halfway through 2014, it’s time to check in on our Best Stocks for 2014 lineup and explore what’s working (and what’s not) for the experts on our list.

Our annual stock-picking contest is simple: Choose one buy-and-hold investment on Jan. 1 and hold it for the entirety of the calendar year. Whoever racks up the biggest profit wins.

In previous years, this contest went down to the wire and largely tracked the market… but in 2014, we have a handful of big standouts leading the pack and a runaway winner that is already up 134% and likely will stay at the top of the heap!

So what stocks are the best stocks of 2014, according to our experts, and how have they been doing? Take a look:

Next: Fortegra Financial (FRF)

Best Stocks for 2014 #10 – Fortegra Financial (FRF)

Sector: Financials
Investor: Hilary Kramer
YTD Returns: -14%

JUST RELEASED: 500 Best & Worst Stocks for Q3 — New report names the 250 powerhouses that could hand you double- and triple-digit gains… and the 250 losers that could blow a hole through your portfolio. Click here to read it now.

Fortegra Financial (FRF) isn’t a traditional bank or financial company, offering payment protection plans for businesses, auto club services and even consumer electronics warranties.

Hilary Kramer, editor of Game Changers, picked this stock as her favorite for 2014 thanks to strong growth potential and a string of acquisitions that should unlock new revenue streams. The more economic activity picks up, the more the services of Fortegra will be used by both consumers and businesses alike to protect their transactions.

Of course, a lack of consistency in earnings have held FRF stock back in 2014; Revenue continues to grow briskly but Fortegra has struggled to translate that top-line growth into bottom line success.

Shares are down year-to-date but could snap back significantly if management can turn the numbers around and start beating Wall Street expectations again.

Next: Citigroup (C)

Best Stocks for 2014 #9 – Citigroup (C)

Sector: Financials
Investor: Greg Harmon
YTD Returns: -10%

Citigroup (C) is another financial stock that’s lagging the market so far this year, but a pick that has big turnaround potential.

Citi once again failed the Federal Reserve’s “stress test” for banks this year, limiting its ability to do stock buybacks or pay shareholders big dividends until regulators are more confident in its balance sheet. However, Citigroup stock seems to have priced most of these challenges in and has remained rangebound between $45 and $55 since early 2013; at the lower part of this range now, it could be a good time to make a bargain buy.

In a cyclical recovery, financial stocks will lead the charge. Though Citi has admittedly faced some headwinds lately, a broader recovery in lending — or a higher interest rate environment that allows Citi to profit from better credit spreads — could lift the bank stock.

Next: ProShares Short Emerging Markets Fund (EUM)

Best Stocks for 2014 #8 – ProShares Short Emerging Markets Fund (EUM)

Sector: Emerging markets ETF
Investor: Anthony Mirhaydari
YTD Returns: -6%

Unlike the other investors on this list seeking out opportunities for big gains, investment expert Anthony Mirhaydari is focusing on what can go very wrong in 2014… and how you can still profit anyway.

His pick, the ProShares Short MSCI Emerging Markets ETF(EUM), goes up when the underlying group of emerging markets investments decline. Such an “inverse” fund is a great way to hedge against uncertainty and ensure your portfolio profits even in a down market.

Of course, emerging markets have slowly moved higher in 2014 and that means Anthony’s pick has moved the other way with a modest decline. However, his initial investment thesis of a looming credit crisis in China and inflationary pressures abroad seems sound. And when you throw in continued geopolitical unrest in Ukraine and Iraq, the emerging market picture looks increasingly rocky.

Next: Vanguard Dividend Appreciation ETF (VIG)

Best Stocks for 2014 #7 – Vanguard Dividend Appreciation ETF (VIG)

Sector: Dividend ETF
Investor: Brendan Conway
YTD Returns: 5%

You’re not going to set the world on fire with a low-cost, low-risk dividend fund. But Brendan Conway of Barron’s has shown yet again that this boring and reliable way of investing can unlock considerable returns.

At the halfway point, his pick of the Vanguard Dividend Appreciation ETF (VIG) is up 5% — which annualizes to an impressive 10% gain per year if this keeps up.

While many investors (including some on this list) try to outperform with sexy small caps, a low-risk and low-cost investment plan with a fund like the VIG can be your best long-term investment strategy. Composed of old income favorites like Coca-Cola (KO), Johnson & Johnson (JNJ) andExxon Mobil (XOM), the Vanguard Dividend Appreciation ETF is a great bedrock investment for any portfolio.

Next: MTN Group (MTNOY)

Best Stocks for 2014 #6 – MTN Group (MTNOY)

Sector: Telecommunications
Investor: Charles Sizemore
YTD Returns: 5%

What if you could marry the growth potential of emerging markets with the stability and income of an entrenched telecom play? Well, that’s exactly what you’ll find in the pick of MTN Group (MTNOY).

Charles Sizemore, editor of Macro Trend Investor, identified MTN Group as his best stock for 2014 based on the big growth potential of mobile phones in sub-Saharan Africa. While the infrastructure of Africa clearly leaves much to be desired, the good news is that smartphones provide an easy and relatively affordable solution for many consumers and businesses even in remote regions of the continent — and many research firms indicate that Africa will soon be the fastest-growing smartphone market in the world as a result.

Beyond this growth potential, MTN Group is entrenched with over 200 million subscribers and offers a decent 3.8% dividend yield based on the last year’s payouts to boot.

While MTN has basically tracked the market thus far in 2014, it clearly has big breakout potential.

Next: Financial SPDR (XLF)

Best Stocks for 2014 #5 – Financial SPDR (XLF)

Sector: Financial ETF
Investors: John Jagerson and Wade Hansen
YTD Returns: 5%

Clearly financial stocks are a bit of a theme in this year’s round of picks. But unlike Fortegra and Citi, which have underperformed, theFinancial SPDR (XLF) has managed to keep up with the broader stock market this year.

Part of that is because John Jagerson and Wade Hansen, editors of the options trading service SlingShot Trader, opted for the diversification of this ETF instead of putting all their eggs in one basket. This is always a great approach to long-term investing, and a good way to protect yourself from the volatility that comes with individual equities.

John and Wade believe in the same general investment thesis for financial stocks as others: that net interest margins will improve, that a brisk economic environment will help lending and that valuations in financials aren’t as stretched as in other sectors.

They’ve been right so far in 2014… and should do quite well as we enter the second half of the year and the hangover from a rough Q1 for the U.S. economy is put behind us.

Next: Fleetcor (FLT)

Best Stocks for 2014 #4 – Fleetcor (FLT)

Sector: Business Support & Services
Investor: Louis Navellier
YTD Returns: 14%

An interesting twist on the focus on financials that we’ve already seen on our Best Stocks list is Fleetcor (FLT). Though not a pure financial stock, since it only deals with payment processing and not lending and credit, FLT is very much linked to the same theme of economic recovery boosting spending and card swipes nationwide.

Fleetcor is a smaller company that provides businesses with gas cards or connects them directly with fuel suppliers. It also has a smaller arm that deals with other fleet and travel issues, including lodging and public transportation as well as vehicle tracking.

The idea is simple: Economic recovery means more business travel and more goods moving around the global economy. Fleetcor operates worldwide and is a great way to play the simple secular recovery in business and manufacturing in the months ahead.

That play has been profitable thus far in 2014, with 14% gains thanks to the shrewd call of Blue Chip Growth editor Louis Navellier. And judging by recent financials, that trend should continue in the second half of the year.

Next: Banco Santander (SAN)

Best Stocks for 2014 #3 – Banco Santander (SAN)

Sector: Financials
Investor: Bryan Perry
YTD Returns: 19%

The best performing bank stock on this list is one of the riskiest plays of the past few years, Banco Santander (SAN). This Spanish bank ran into serious troubles in 2010 and 2011 thanks to the European debt crisis, and then lagged the market considerably in 2013 as emerging markets continued to struggle and its operations in Latin America felt the pain … but 2014 is the year of Santander’s turnaround, and investors have been richly rewarded.

Bryan Perry, editor of the dividend investing newsletter Cash Machine, didn’t just jump into Santander for the snap-back in share price though. Based on the last 12 months of distribution, this stock still yields a hefty 7.9% dividend — so even if shares don’t do much for the rest of the year, investors can lock in a great cost basis and a mammoth dividend yield for the long term.

This stock clearly is a bit riskier than domestic megacap financials. But considering Bryan has racked up over three times the returns of the S&P 500, that risk has paid off for him and his investors big time.

Next: Tesla Motors (TSLA)

Best Stocks for 2014 #2 – Tesla Motors (TSLA)

Sector: Automaker
Investor: Kyle Woodley
YTD Returns: 59%

If you’re looking for an exciting momentum stock, then the company of the moment is certainly Tesla Motors (TSLA). This electric vehicle manufacturer has it all — a sexy product consumers love in its Model S sedan, an innovative CEO in Elon Musk and ambitious plans for the future including an all-electric SUV and a “Gigafactory” that will produce high-powered batteries for hybrid and electric vehicles around the world.

The million dollar question, of course, isn’t whether Tesla stock is legit… but whether it is fairly valued. After all, the company is sitting on a forward price-to-earnings ratio of almost 80 and a heck of a lot of optimism has been priced in to TSLA shares. That doesn’t leave much room for error.

Just consider the fact that Tesla still hasn’t reclaimed its peak of $265 per share from four months ago as proof that it may be difficult for the stock to keep up this strong momentum.

However, InvestorPlace editor Kyle Woodley already enjoys a hefty 59% gain year-to-date on this call … so even while new money may not have the same profit potential, this insufferable Ohioan is sitting pretty.

Next: Emerge Energy Services (EMES)

Best Stocks for 2014 #1 – Emerge Energy Services (EMES)

Sector: Oil and Gas Services
Investor: Jon Markman
YTD Returns: 134%

While a number of stocks on this list have posted great gains year-to-date, the runaway winner is Emerge Energy Services (EMES). Picked by Jon Markman, editor of Trader’s Advantage, this stock has exploded to more than double investors’ money so far in 2014.

What’s the secret of EMES stock? Well, while many investors haven’t heard of this name it does have a connection to one of the fastest-growing businesses in the U.S .right now: fracking.

Emerge mines specialized sand that is used in oil shale fracking, and continues to soar as a result. The best news is that EMES doesn’t participate in the exploration or extraction process itself and simply provides materials to other oil and gas companies — meaning it is protected from volatility in oil prices or the costly and drawn-out process of obtaining mineral rights and tapping finds.

Emerge simply connects with other fracking companies to help them. And shareholders like Jon Markman have been racking up big gains this year as a result of this simple way to tap into the fracking boom.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter at @JeffReevesIP.

Amazon’s Secret Weapon is out Tomorrow – 3D Smart Phones?!

3 Ways Amazon’s Phone Will Shock You

Investing in Marihuana Stocks, which is legal in many of the North American States

The market for legal marijuana is expected to top $10 billion by the end of this decade so if you looking to invest in the marijuana industry make sure to go further North across our borders, because in U.S.A Marijuana growers face a huge barrier due to the disparity of laws that govern their crop; Even though in the United States the marijuana industry is picking up steam.  At the moment, 21 states allow the use of marijuana for medicinal purposes, and in Colorado you can have it for recreational use. By 2016, more than 106 million Americans will reside in states where it’s legal for either medicinal or general use. ……

Colorado

Airports in Colorado are facing a perplexing challenge.

That is, how to stop passengers from boarding airplanes with marijuana in their possession.

It’s the offshoot of the state’s decision to legalize marijuana for recreational use, which went into effect on January 1, 2014.

Despite Colorado’s incredibly liberal stance on marijuana, federal aviation regulations still reign supreme. And it’s illegal to operate a civil aircraft with known marijuana on board.

Anyone pinched for flying with cannabis faces up to a $2,500 fine or jail time.

The state’s largest airport, Denver International, has a zero-tolerance pot policy.

Hence the challenge…

What’s a passenger with a stash in their pocket supposed to do?

Dumping the weed in a trash can is a really bad idea. Because that would simply encourage other stoners to dig through the garbage.

So the answer is “amnesty boxes.”

Such boxes are a last opportunity to ditch your weed before boarding.

For me, this storyline was a signal to address the viability of marijuana as an investment.

So I asked bestselling author, Karim Rahemtulla, to issue a full report.

As it turns out, although this niche market has profound barriers to entry, Karim found a direct route just north of the border.

~ Robert Williams, Founder, Wall Street Daily

Before founding Wall Street Daily in the teeth of the Financial Crisis, Robert Williams served as the lead financial analyst for a Forbes top-50 private corporation and an analyst for the endowment of a major academic institution.

The marijuana industry in the United States is picking up steam – with new laws allowing the use of pot for everything from medicine to recreation.

Wall Street has taken note, and marijuana stocks are popping up like buds in a well-run greenhouse.

But not all companies are going to succeed. And the volatility we’re seeing in the industry could be just the beginning.

Here’s why…

Marijuana’s Unstoppable Momentum

Currently, 21 states allow the use of marijuana for medicinal purposes. By 2016, more than 106 million Americans will reside in states where it’s legal for either medicinal or general use.

The market for legal marijuana is expected to top $10 billion by the end of this decade. And states are enjoying a new windfall in tax revenue.

Colorado, for instance, could reap in excess of $100 million in taxes in the first full year of its legalization program.

So marijuana certainly isn’t going away anytime soon…

After all, cold, hard cash and politicians (who love to spend it) are a combination that has yet to be defeated in this – or any other – country.

But what does that mean for you, the investor? Well, there’s a huge opportunity… to lose money!

Look North to Avoid Pitfalls in the Industry

Marijuana growers face a huge barrier to success in the United States…

That is, the disparity of laws that govern their crop.
Laws can change from state to state – and even from county to county. There’s no federal law requiring states to offer equal guarantees to either user or seller.

In fact, the federal laws still consider pot to be an illegal substance.

So with the patchwork of laws throughout the country – along with the massive penalties that the Feds could impose if they maintain and enforce the current law on the books – investing in marijuana stocks could end up being a crapshoot.

Hence the volatility in the sector.

So how do you invest in the growing marijuana market while avoiding any potential pitfalls? Easy…

Invest in marijuana stocks in places where the laws are more transparent and uniform. And the best place to start is just north of the border.

The Canadian federal government and provincial governments are aligned in their laws across the country.

As a result, after years of begging for funds, companies in the sector are now turning investors away.

One such company is a pure-play on weed. It’s using Israeli technology to grow marijuana on a farm in British Columbia. And it sports the Royal Bank of Canada as its banker and Deloitte LLP as its auditor. The company is Tweed (TWD.V), the first marijuana company listed on the Toronto Stock Exchange’s Venture Exchange.

Bottom line: If you’re looking to diversify your “agricultural and commodity” holdings, it might pay to look to our friends in Canada for a straightforward entry into the sector. Risking too much locally may cause your investment dollars to go up in smoke one day.

The World’s “Renegade Currency” – will Bitcoin crush the market for 2014?

bitcoin1bitcoin2 Have you heard of Bitcoin? Probably you have, but you are just as skeptical as the one who said ” They’re just hijacking the Bitcoin name and trying to claim it has links to some kind of currency Edison tried to invent back when he was alive, it’s a load of bullshit and people should ignore”. Well! well.. haven’t you ignore it enough? Wouldn’t you like to know what this Bitcoin is, and how it may affect our world tomorrow? This is what some say about it:- “Bitcoin is A renegade currency,disrupting global economies, weakening the power of central banks, and transforming the financial destinies of people across the globe”     So, what is this currency all about?

Let us start first with, why they call this “Bitcoin” an Edison Renegade Currency.

You see, back in 1921, Edison wanted to re-invent the dollar and that was a radical plan that the government wouldn’t go for, but now with our new technologies, Edison got his revenge.    

We all know Thomas Edison is a renown inventor, even a child can tell you what made him so famous in his invention. One more invention he would have like to see before he died, and that was his idea for a renegade currency, and in 2009 that vision was finally realized in the form of bitcoin.

The dollar is being counterfeited all over the world. Not just the dollar, people who do counterfeiting,they can do so to any currency of any country, around the world.
A “virtual currency” (like Bitcoin) is invisible. It depends on billions of computers which are linked together. You cannot dilute Bitcoin, you cannot counterfeit it… and those two things make it highly desirable to many people who have lost their confidence in the current central bank-controlled world of money..  The world’s most famous investor recently delivered his blunt advice to CNBC, saying investors should fear the dollar because it will be “worth less and less over time.” “Paper money has a lousy future,” Buffett said.
Now thousands of Main Street Americans are dumping their dollars – and have turned to buying and investing in bitcoin. BUT…is BITCOIN: a new currency or a new scam?
Below is an article By Marilyn MacGruder Barnewall, who will enlightened us further on this renegade currency— Read on

BITCOIN: A NEW CURRENCY – OR A NEW SCAM?

By Marilyn MacGruder Barnewall
January 5, 2014
NewsWithViews.com
And Pretty Soon You Have Some Real… What?
I planned to spend the month of January clearing out files and getting old interests off of my computer to make room for new ones rather than doing any writing but a telephone call from a person well informed about banking, bank regulations, the American legal system, and many other things (including USA, Inc.), and it changed my plans. He called and asked a simple question: “What’s your opinion of Bitcoin?” I’ve had many other friends ask… and have avoided an answer – until now.
Banking, not currency, is my area of expertise… but the two concepts overlap. Without money, what good is a bank?
What is money? Before I address the topic of Bitcoin, this question must be answered. What is money? What is wealth? What is profit? The three are intertwined, but they are not the same thing.
Money is a reward for labor and risk management. People who run their own independent businesses are rewarded with profit for their good decisions (or take losses for bad ones) involving risk management. People who work for them – or for multi-national companies – take no risk but provide the sweat of their brow to gain access to money. Stock market investors are rewarded for their good decisions with profit – or are penalized for bad ones. For most people, however, money is the reward for labor and risk management. After earning it, it becomes the means to survive, giving us access to everything from housing and comfort – to the opposite. Anyone who opens a business every day manages risk. Anyone who invests in various market products – from stocks to bonds and mutual funds and metals – manages risk. When you get to the bottom line, though, money is something the vast majority of people think they can stuff in their mattress or pull from their wallets to pay for a drink at the local bar or to tip a waitress at Denny’s for good breakfast service.
As long as government can put you in prison for not paying your taxes, what backs America’s paper currency is not “nothing.” People tell you that but it is untrue. What supports the Dollar/Federal Reserve Note is the tax base of the nation. Our paper money is backed by the taxes paid by the American people, by the sweat of our brow, by the value of our real estate (before mortgage-backed derivatives ruined it), and our commodities. Generally, productivity determines our wealth, not “things.”
Money is a nationally-recognized medium of exchange – like the U.S. dollar (or Federal Reserve Note – bearing in mind that the word “note” also means “loan”) or the British Pound Sterling or the French Franc or the German Deutsch Mark. But money has changed in the past few years. Computers turned “money” into “virtual currencies” or “digital currencies.” The United States Federal Reserve Note is the largest digital currency in the world. Bitcoin’s claim to being a digital currency is totally minimized when you think about the “digital dollar” for longer than a minute.
Bitcoin supporters – and they are legion – are as dedicated to the concept of a non-government backed currency like Bitcoin as any Greenie is to eliminating carbon footprints. They are pretty radical. They have found something to believe in… something they believe to be better than money produced and regulated and backed by governments around the world.
Supporters of Bitcoin think of it as a non-government (or post-government) currency – but it is not. Government can shut it down anytime it wants. And that was the first answer I gave to the caller who asked the question. A “virtual currency” (like Bitcoin) is invisible. It depends on billions of computers which are linked together. You cannot dilute Bitcoin, you cannot counterfeit it… and those two things make it highly desirable to many people who have lost their confidence in the current central bank-controlled world of money. The dollar is being counterfeited all over the world. The point is, the people have largely lost their trust in government. Like most not terribly bright people, they simply do not recognize the point at which they are going to kill the goose that lays the golden eggs and think that Gordon Gekko’s statement that “Greed is good” is accurate – into infinity. Greed is not good – and fairly earned profits are not bad.
Does Bitcoin bypass central banks and currencies, as its supporters suggest it does? Let me answer that question with a question: How do you obtain Bitcoin? Does someone pay you for it in return for your labor? No… you are paid in the nationally-recognized currency of your nation in return for your labor. People who manage risk to earn profits are also paid in the currency of the realm, so to speak. The only way you can get Bitcoin is to use dollars or yen or francs, etc., to purchase it. Thus, it does not by-pass central banks or currencies. It is dependent upon them for its very existence.
Bitcoin exploded on the American scene… well, it exploded worldwide. The biggest users of Bitcoin are the people of China. The people of India are also heavily invested. People who have had limited access to traditional banks in their nations have been drawn to the Bitcoin digital currency.
The fact is, belief in paper money is crumbling. Why? Because of mortgage-backed derivatives. Because of government reports that tell us inflation is only 3% — when we know what we pay for groceries exceeds that number by far. Because of Quantitative Easing payments by the Federal Reserve to Wall Street banks – certainly not representative of the vast majority of independently-owned commercial banks in America – to prop up the stock market. Because of the manipulation of the precious metals markets by banksters and government agents who act in opposition to the well-being of the citizens of this nation. The fact is, belief in paper money is crumbling because of lies (from ObamaCare to Benghazi to IRS manipulations of tax status qualification to Tea Party groups). And that has stimulated international interest in Bitcoin.
The problem with America’s currency today is that too much of it is being “printed” – though it’s not really printed these days. It’s just key-coded into a computer. Another problem is Bitcoin stock volatility… it’s gone up 9,000% just this year. Now that could take the currency market on the ride of its life, couldn’t it? Currencies need to be stable or the world can’t be stable. A nation’s currency needs a lack of volatility. One reason so many people want a currency that is backed by gold and silver is because they are sufficiently rare as to prevent too much duplication of them and, thus, a certain amount of non-volatility is achieved. You can’t print – or key-code – a bar of gold into a computer. One of the things supporters point out is that Bitcoin programmers replicated something that cannot be counterfeited or diluted. Well, they say that – but that’s an assumption that hasn’t withstood sufficient tests of time, hacker technology, and marketplace manipulations. It is unproven.
How do you get Bitcoin? You must use the currency of your nation to purchase it. So Bitcoin does not by-pass currency and central banks as advertised. You need your national currency to gain access to it. Thus, Bitcoin’s primary value lies in its stock market price, not in any established market value – perceived, not actual value. And government can shut down Bitcoin anytime it chooses. How? Turn off access to the computer. If you do not think government controls what has access to the Internet, you have not been following the news. Should Bitcoin ever become a real threat to the central banking system, Bitcoin will be shut down. Do you really believe that a central banking system that has seen every President assassinated (or attempts made) when they tried to break away from the central banking system is going to hesitate for one moment to cut off access to Bitcoin should it become a threat? Please!
On June 4, 1963, President John F. Kennedy signed Executive Order 11110 giving the Treasury Department explicit authority “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” In other words, for every ounce of silver in the U.S. Treasury vault, the government could place new currency into circulation. More than $4 billion in U.S. Notes were created in $2 and $5 denominations. President Kennedy was assassinated five months later… while the Treasury Department was printing $10 and $20 United States Notes (and the $10 and $20 Notes were never circulated). After the Kennedy assassination, the U.S. Notes Kennedy had issued were immediately taken out of circulation. Almost all of the paper currency in the United States – over 99% — is Federal Reserve Notes, not the United States Notes John F. Kennedy constitutionally created.
Abraham Lincoln needed financial assistance to finance the War Between the States (some call it the Civil War). New York banks offered him loans at a 24% to 36% interest rate. Instead, Lincoln got Congress to allow him to produce Greenbacks. The Greenback solution worked so well, Lincoln intended to make it a permanent policy… one that would do away with the need for a central bank. As history teaches us, President Lincoln was shot on Good Friday, April 14, 1865, while watching a play at Ford’s Theater. There were attempts on the life of President Andrew Jackson, too. Jackson firmly opposed central banks and his vow to prevent a central bank was the thrust of his Presidential campaign. He was elected – which should tell you what the people wanted.
Do you really believe the richest, most amoral, most powerful organization in the world – the Bank of International Settlements whose members are the central banks of the world – would have a problem in shutting Bitcoin down in a New York minute if they thought it represented any kind of threat to them? I don’t. All they have to do is remove Bitcoin from the Internet… and without the Internet, there is no Bitcoin. It is, however, interesting to ponder if Bitcoin is a false flag designed to lead people down a yellow brick road, promising a solution to the central bank problem while concurrently creating a huge bubble! We’ll see.
Too, there are technical problems with Bitcoin. For example, if I owe you $1,000 today and give you the correct amount of Bitcoin to pay that debt, by the time you cash my payment the value of the Bitcoin may have sunk sufficiently that you get only half of what you loaned me. That is a solid argument against Bitcoin as a day-to-day form of currency. When something is that volatile, it cannot be used as a medium of exchange. Those who argue that we should use gold and silver coinage rather than paper bills need to own up to the volatility of precious metals, too. We have seen in the past years how easily the gold and silver markets can be manipulated. That’s why they, alone, aren’t good mediums of exchange… under the current system certain banksters get a minute or 15 seconds on the computer before anyone else can invest and set the price for precious metals for the day, making them too volatile. Until the manipulation problem is solved, that problem remains. Part of the solution is using all commodities to back a nation’s currency. The entire world market of commodities cannot be manipulated at the same time.
Digital currencies are, Bitcoin supporters say, the wave of the future. What they neglect to say is that the US Federal Reserve Note is already the world’s largest digital currency.
Many people are aware that a global currency reset is scheduled. Actually, it has already begun. No doubt that the dollar is in big trouble… we all know that. The world’s central banks will soon get rid of the dollar as the international currency of trade and a global currency reset will be used to achieve that. It will not be a hidden event — you will hear the words “global currency reset.” It is scheduled to happen within the next three months… but there are many a slip between cup and lip.
There are 204 countries that agreed with the IMF to revalue their currencies. It is said they have agreed to keep their currencies within a 5% differential of each other. That doesn’t mean the collapse of the US dollar. That comes later. The hope is that the global currency reset will prevent currency wars – which is what we have right now and it’s hurting everyone. In some nations, currencies will be devalued. In others, value will increase. When a currency is devalued, the cost of labor goes down – which appeals to multi-national corporations. Some say the US dollar will go down 30%. – I think the global currency reset will cause the dollar to go down more than that, but that’s just my opinion. In relation to other currencies in the world, the US dollar will be revalued in relation to the value of other currencies worldwide. How will worldwide currency values be established? Productivity and population… and we’re back to where I started this article: the value of money is determined by labor and risk management.
What does that mean? If the dollar drops by 30% , it means 30% inflation. As America gets over its love affair with cheap Chinese products – after the Chinese currency is re-valued upward – future costs of those products will be much higher. So there will be a secondary cost increase – and that means more inflation beyond the original 30%.
The currencies will be reset, they say, according to the assets of the country. What is America’s big industry? You’ve heard it from me a hundred times this past year: Debt. That’s why I call the economic driver of our nation “debtism” rather than “capitalism.” We have no manufacturing or industrial base. With Quantitative Easing, the Federal Reserve System’s Balance Sheet has increased from 12 (plus) trillion at the end of the Bush Administration to an explosive $17 trillion under Obama. There are no assets left in America. Debt is our biggest asset.
And now you know why I’ve also been saying for the past year that the best investment you can make is things you will need in the immediate future: Underwear, clothing, toilet paper, shoes (for adults), canned goods and other long-term food, medical materials – iodine, e.g.. They are all going to shoot sky-high in the coming months and years. Take a look at those things on which you are most dependent – and stock up on them.
Notice to marketers: We are now moving from a want-driven marketplace to a needs-driven marketplace.
© 2014 Marilyn M. Barnewall – All Rights Reserved

The Easy Money is On – 5 Mining Stocks to Buy – Buy a piece o’ Company for less than $12

Nowadays money in banks don’t earn you anything, and if it does it won’t be more than 0.02% do you agree? In fact, some banks they don’t even pay you interest on your savings, and we all know that banks use every bit of our pennies to invest them somewhere; otherwise, banks won’t make money. Service charges is not enough for banks to function, interest on loans doesn’t do lately because no one wants debts. People are tired of credits and credit cards. Yet, banks have to invest your money; in order to keep making money. So, wouldn’t you like to charge your bank a hefty interest for using your money as they are charging you for getting a loan? We all know you probably cannot charge banks interest on your deposited money, which they use to invest but, If you can’t charge them, then you can always invest your money in a company of your choice, a company you like.

What are you waiting for? Buy yourself a share of a company.  Wouldn’t you like to have a share of a company? It is easy to do so; and with today’s uncertainty on your money in banks, you are probably better off to own a stock to a company. — “When you buy a share of stock, you are taking a share of ownership in a company. Collectively, the company is owned by all the shareholders, and each share represents a claim on assets and earnings.”    You can learn more about stocks by clicking on the link given at the end of the article…. 

 Meanwhile, as we are talking about stocks, let us check out the 5 mining stocks by Anthony Mirhaydari, from InvestorPlace below

5 Mining Stocks to Buy Amid the Surge in Silver and Gold

The easy money is on, bringing a beleaguered sector back to life

By Anthony Mirhaydari, InvestorPlace Market Strategist  |  Feb 13, 2014, 9:04 am EST
  • It’s clear that the cheap money is going to keep flowing under new Federal Reserve chair Janet Yellen, and that in turn has brought life into precious metals and mining stocks.

Although Yellen indicated, in her first appearance in front of Congress since being sworn in on Tuesday, that the taper of the “QE3″ bond-buying program would continue apace — at around $10 billion per meeting — this was offset by a moving of the goalposts on when short-term interest rates would rise from the near 0% perch they’ve been sitting on since 2008.

Yellen said rates wouldn’t move until alternative measures of labor market health, such as long-term unemployment and the number of folks working part-time for economic reasons, improves as well as the overall unemployment rate. That suggests more work is to be done, despite a quicker-than-expected drop in the jobless rate to 6.6% in recent months.

Also, she highlighted the fact that the Fed’s preferred inflation measure (personal consumption expenditures) is just 1.1%, below their 2% target, and that there wouldn’t be impetus to hike rates until inflation hit 2.5% — a level that hasn’t been seen since January 2012.

Investors reacted by pouring into gold and silver and related mining stocks as higher inflation — and the weaker U.S. dollar that will likely accompany it — has brought the beleaguered sector to life. After an initial surge higher in January, which I covered in a number of posts, the group is on the move again.

Here are five mining stocks to buy in response in the coming days:

Mining Stocks to Buy: First Majestic Silver (AG)

021314AG 300x247 5 Mining Stocks to Buy Amid the Surge in Silver and Gold
Click to Enlarge 
First Majestic Silver (AG) is popping out of a downtrend going back to August as it crosses over its 200-day moving average — a level that it hasn’t spent much time above since late 2012.

The company, based in Canada, operates mines in Canada and Mexico and a silver trading operation in Europe. Management expects silver production to increase between 19% and 25% this year.

A return to the August high would be worth a 45% move from here.

Mining Stocks to Buy: Yamana Gold (AUY)

021314AUY 300x247 5 Mining Stocks to Buy Amid the Surge in Silver and Gold
Click to Enlarge 
Yamana Gold (AUY), like AG, is also pushing over its 200-day moving average, moving below that threshold in early 2013 and not looking back. The company has operations in Brazil, Chile, Argentina, Mexico and Colombia, but is based in Canada.

Analysts at Morgan Stanley recently increased their price target on the stock to $12 a share — which would represent a 41% gain from current levels.

Mining Stocks to Buy: Harmony Gold (HMY)

021314HMY 300x247 5 Mining Stocks to Buy Amid the Surge in Silver and Gold
Click to Enlarge 
Harmony Gold (HMY) traded as high as $15.33 share back in 2011 — the last time inflationary pressure bubbled up and the Fed was forced to slam the brakes on the “QE2″ bond purchase program — before suffering a whopping 85% price wipeout into a low set back in December.

Shares have since stabilized and are pushing higher in what looks to be a challenge of its August highs — a move that would be worth a 47% gain from here.

Mining Stocks to Buy: Great Panther Silver (GPL)

021314GPL 300x247 5 Mining Stocks to Buy Amid the Surge in Silver and Gold
Click to Enlarge 
Great Panther Silver (GPL) has been in a persistent and catastrophic downturn since peaking in early 2011, falling from more than $5 a share to a 2013 low of just 65 cents. That looks to be changing now, as shares break a persistent channel resistance line that has held the stock over the last four years, save for a short reprieve back in August 2012.

The company is looking for a 10% production increase this year via its operations in Mexico. Great Panther is also pursuing development opportunities throughout Latin America. GPL is already up 4% for me since adding it to my Edge Letter Sample Portfolio on Tuesday.

Mining Stocks to Buy: Silver Wheaton (SLW)

021314SLW 300x247 5 Mining Stocks to Buy Amid the Surge in Silver and Gold
Click to Enlarge 
Silver Wheaton (SLW), a larger market capitalization pick than the other four presented here, has been relatively buoyant in comparison. That makes it a better selection for a more conservative investor. Shares are down more than 40% from their late 2012 high, but is now enjoying upside momentum as it breaks above resistance from its 200-day moving average — a level that held throughout 2013 and into early 2014.

Disclosure: Anthony has recommended AG, AUY, HMY, GPL, and SLW to his clients.

Anthony Mirhaydari is founder of the Edge, an investment advisory newsletter, as well as Mirhaydari Capital Management, a registered investment advisory firm. 

Original link:- http://investorplace.com/2014/02/5-mining-stocks-to-buy/view-all/#.Uv5DnWJdWSo

Go here   http://money.cnn.com/magazines/moneymag/money101/lesson5/                                                   4Tips for investing in stocks Everything you need to know about investing in stocks.  http://money.cnn.com/magazines/moneymag/money101/lesson5/

The Stock Market In Japan Is Collapsing. Is U.S.A next in line?

With this one I have to include the comments from readers at
The Trading Report so you can get an idea about our economy worldwide; as well as enjoy fresh ideas and insight about the  the realities of the collapsing market globally as some are predicting to happen this year. This is what some people say about the whole situation:-  “Japanese economy was sideswiped in the early 90’s by artificially low interest rates and excessive money supply which led to bubbling asset prices;  when alot you who think the economy is going to be all roses’s the one with the gold and silver will flourish;  Maybe you are not aware of the nature of debt, but at some point it must either be paid back, defaulted on, or inflated away: since paying it back is not an option, we will be stuck with #2 or # 3, neither of which will end well.”  Enjoy the article……and let us hear from you too, you can comment in the end

The Stock Market In Japan Is Collapsing

By Michael Snyder (The Economic Collapse Blog | Original Link) February 5, 2014
Tokyo Night
Did you see what just happened in Japan? The stock market of the 3rd largest economy on the planet is imploding. On Tuesday, the Nikkei fell by more than 610 points. If that sounds like a lot, that is because it is. The largest one day stock market decline in U.S. history is only777 points. So far, the Dow is only down about 1000 points during this “correction”, but the Nikkei is down more than 2,300 points. The Nikkei has dropped more than 14 percent since the peak of the market, and many analysts believe that this is only just the beginning. Those that have been waiting for a full-blown stock market collapse may be about to get their wish. Japan is absolutely drowning in debt, their central bank is printing money like crazy and the Japanese population is aging rapidly. As far as economic fundamentals go, there is very little good news as far as Japan is concerned. So will an Asian financial collapse precede the next great financial crisis in the United States? That is what some have been predicting, and it starting to look increasingly likely.

What happened to the Nikkei early on Tuesday was absolutely breathtaking. The following is how Bloomberg described the carnage…

At the end of January 2013, Japanese stocks trailed only Portugal for the biggest rally among developed markets. Now the Nikkei 225 Stock Average is leading declines, slumping 8.5 percent last month and today capping a 14 percent drop from its Dec. 30 peak.

Losses snowballed in Tokyo during a global retreat that has erased $2.9 trillion from equity values worldwide this year amid signs of slower growth in China and stimulus cuts by the U.S. Federal Reserve.

As Bloomberg noted, much of the blame for the financial problems that we are seeing all over the planet right now is being placed on the Federal Reserve.

The Fed created this bubble by pumping trillions of fresh dollars into the global financial system, and now they are bursting this bubble by starting to cut off the flow of easy money.

This is something that I warned would happen when the Fed decided to taper, and now RBS is warning of a “market bloodbath” unless the Federal Reserve immediately stops tapering.

Most Americans simply do not realize that our financial markets no longer resemble a free market system. Instead, they are highly manipulated and distorted by the central banks, and the trillions of dollars of “hot money” that the Fed has poured into the global financial system has infected virtually every financial market on Earth…

On Wall Street they call it “hot money”—that seemingly endless flow of cash that goes to the most profitable country du jour—but in the real economy it’s gone cold.

That hot money has come mostly in the form of a low-yielding U.S. dollar, which investors have borrowed en masse to fund investments in other higher-yielding currencies across the globe. The so-called carry trade has helped fuel an investment bonanza across the world that has boosted risk assetsthanks primarily to the U.S. Federal Reserve’s easy-money policy.

But with the Fed tiptoeing away from what initially was an $85 billion-a-month infusion of liquidity, investors are beginning to prepare themselves for a world of rising rates in which the endless cash flow to emerging market economies begins to ebb, then cease.

We never fixed any of the fundamental problems that caused the last financial crisis. Instead, the Fed seemed to think that the solution to any problem was just to create more money.

It was an incredibly stupid approach, and now our fundamental problems are worse than ever as Marc Faber recently noted…

“Total credit as a percent of the global economy is now 30 percent higher than it was at the start of the economic crisis in 2007, we have had rapidly escalating household debt especially in emerging economies and resource economies like Canada and Australia and we have come to a point where household debt has become burdensome on the system—that is, where an economic slowdown follows.”

So what comes next?

Well, unless the Fed or other central banks intervene, we are probably going to have even more carnage.

At least that is what Dennis Gartman, the editor and publisher of “The Gartman Letter”, told CNBC on Tuesday…

“I just think you’re going to have a very severe, very substantive and really quite ugly correction that will probably make a lot of people wail and gnash their teeth before it’s done.”

Other analysts share his pessimism. According to Doug Short, the vice president of research at Advisor Perspectives, the U.S. stock market “still looks 67% overvalued“.

Most sobering of all is what Richard Russell is saying. In his 60 years of writing about financial issues, he has never been “so filled with foreboding regarding what lies ahead”…

I’d be lying if I said that I wasn’t worried about the way things are going. Frankly, I’m truly scared for myself, my family and the nation. I have the sinking feeling that the stock market is on the edge of a crash. If that happens, investor sentiment will turn quickly bearish. And the bear market will start feeding on itself. Ironically, the recent action occurred in the face of almost insane bullishness on the part of the crowd and on the part of investors.

Obviously smart heads and institutional money managers know that the US is semi dead in the water. And all the talk about an improving economy is just wishes and hopes. Bernanke’s dream of a flourishing new economy, improving without the need of the Fed’s help, is an idle dream.

I’ve been writing about the stock market for over 60 years and I can’t remember a time when I was so filled with foreboding regarding what lies ahead. The primary trend of the market, like the tide of the ocean, is irresistible, and waits for no man. What scares me the most in this current situation is that I see no clear island of safety.

You can read the rest of his very disturbing remarks right here.

U.S. stocks may not totally crash this week, this month or even this year, but without a doubt a day of reckoning is coming. As a society, our total consumer, business and government debt is now equivalent to approximately 345 percent of GDP.

The only way that the game can continue is to keep pumping up the debt bubble even more.

Once the debt bubble stops expanding, it will start collapsing very rapidly.

Those that foolishly still have lots of money in the stock market better hope that the Federal Reserve decides to intervene in a major way very soon.

Because if they don’t, there is a very good chance that we could indeed have a “market bloodbath” on our hands.

Join the discussion…at the trading report
http://www.thetradingreport.com/2014/02/05/the-stock-market-in-japan-is-collapsing/
george • 20 hours ago
Maybe we could get the taxpayers to give us a 100 million to go on a one week trip and not worry about increasing the debt, or for that matter anything else and we could all take “selfies” of ourselves.
3 •Reply•Share ›

JohnDille • 20 hours ago
YADA YADA YADA!!! I guess Michael Snyder has never heard of Abenomics, the Japanese version of infinite Quantitative Easing! Right wingers wishing to bash Japan’s effort to get its stagnant economy moving apparently are not aware that it has been stagnant for more than 20 years… so it is about time they try SOMETHING!!! That is especially true because Japan can no longer afford stagnation… it can risk serious economic problems by following Abenomics… or they can risk even more serious economic problems by doing nothing!!! In other words, Japan is in the same situation the United States was a few years ago… when they decided to step in and do the bail out thing and the quantitative Easing thing… as risky as those strategies were… OR THEY COULD HAVE DONE LIKE RIGHT WINGERS WANTED THEM TO DO… and let the whole US economic system collapse!!! Japanese economy was sideswiped in the early 90’s by artificially low interest rates and excessive money supply which led to bubbling asset prices They seem to forget that out there in the REAL world, the solution to the debt problem is inherently simple, though controversial… SINCE ALL THAT DEBT IS JUST PAPER, IF PUSH REALLY COMES TO SHOVE, JUST PUT A MATCH TO THE MOST EXPENSIVE FORMS OF ALL THAT PAPER!!! Let the rich right wingers scream in protest… WE STOLE ALL OF THAT MONEY FAIR AND SQUARE… but driving down interest rates almost to zero is saving the US government and the people of the United States TRILLIONS OF DOLLARS A YEAR IN INTEREST COSTS… SAVINGS THAT WILL BE COMPOUNDED FOR YEARS TO COME IF WE CONTINUE TO FOLLOW THAT STRATEGY!!! In the mean time, let the right wingers howl… THE WIND BLOWS LOUDEST THROUGH AN EMPTY BARN… as my old man used to say!!!
1 2 •Reply•Share ›

Paul Dragotto JohnDille • 19 hours ago
why are you blaming the right. it’s the whole damn system. if you have any money in a 401K , or any retirement , get it into gold and silver. when alot you who think the economy is going to be all roses’s the one with the gold and silver will flourish. i’m not a republican nor a deomocrap, i’m an patriot. i stand by the constituiton and the i buy guns and gold.i see inflation every week go up in food price’s and dry goods. when the storm troopers come to take you to a FEMA camp . i’ll be safe with my food,guns, and metals. good luck chuck.
6 •Reply•Share ›
Avatar
Joe Cabot JohnDille • 17 hours ago −
Uh, sleepy, maybe you were dozing off, but the stimulus in the USA began during the Bush administration. Called TARP, too big to fail, and corporate bailouts, the lefties were in full howl over the excesses and evil of it all. Now that Barry is in office it suddenly becomes sound economic policy. By the way, the Japanese economy was sideswiped in the early 90’s by artificially low interest rates and excessive money supply which led to bubbling asset prices, which is exactly where we are at today. Maybe you are not aware of the nature of debt, but at some point it must either be paid back, defaulted on, or inflated away: since paying it back is not an option, we will be stuck with #2 or # 3, neither of which will end well. That lesson was taught during the first week of basic economics – you must have been in the barn with your dad that week.
3 •Reply•Share ›

28 Signs That The Middle Class Is Heading Toward Extinction

By Michael Snyder (The Economic Collapse Blog | Original Link)
5789908005_feebfba940_z

The death of the middle class in America has become so painfully obvious that now even the New York Timesis doing stories about it.  Millions of middle class jobs have disappeared, incomes are steadily decreasing, the rate of homeownership has declined for eight years in a row and U.S. consumers have accumulated record-setting levels of debt.  Being independent is at the heart of what it means to be “middle class”, and unfortunately the percentage of Americans that are able to take care of themselves without government assistance continues to decline.  In fact, the percentage of Americans that are receiving government assistance is now at an all-time record high.  This is not a good thing.  Sadly, the number of people on food stamps has increased by nearly 50 percent while Barack Obama has been in the White House, and at this point nearly half the entire country gets money from the government each month.  Anyone that tries to tell you that the middle class is going to be “okay” simply has no idea what they are talking about.  The following are 28 signs that the middle class is heading toward extinction…

#1 You don’t have to ask major U.S. corporations if the middle class is dying.  This fact is showing up plain as day in their sales numbers.  The following is from a recent New York Times article entitled “The Middle Class Is Steadily Eroding. Just Ask the Business World“…

In Manhattan, the upscale clothing retailer Barneys will replace the bankrupt discounter Loehmann’s, whose Chelsea store closes in a few weeks. Across the country, Olive Garden and Red Lobster restaurants are struggling, while fine-dining chains like Capital Grille are thriving. And at General Electric, the increase in demand for high-end dishwashers and refrigerators dwarfs sales growth of mass-market models.

As politicians and pundits in Washington continue to spar over whether economic inequality is in fact deepening, in corporate America there really is no debate at all. The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even further away.

#2 Some of the largest retailers in the United States that once thrived by serving the middle class are now steadily dying.  Sears and J.C. Penney are both on the verge of bankruptcy, and now we have learned that Radio Shack may be shutting down another 500 storesthis year.

#3 Real disposable income in the United States just experienced the largest year over year drop that we have seen since 1974.

#4 Median household income in the United States has fallen for five years in a row.

#5 The rate of homeownership in the United States has fallen for eight years in a row.

#6 In 2008, 53 percent of all Americans considered themselves to be “middle class”.  In 2014, only 44 percent of all Americans consider themselves to be “middle class”.

#7 In 2008, 25 percent of all Americans in the 18 to 29-year-old age bracket considered themselves to be “lower class”.  In 2014, an astounding 49 percent of them do.

#8 Incredibly, 56 percent of all Americans now have “subprime credit”.

#9 Total consumer credit has risen by a whopping 22 percent over the past three years.

#10 The average credit card debt in the United States is $15,279.

#11 The average student loan debt in the United States is $32,250.

#12 The average mortgage debt in the United States is $149,925.

#13 Overall, U.S. consumers are $11,360,000,000,000 in debt.

#14 The U.S. national debt is currently sitting at$17,263,040,455,036.20, and it is being reported that is has grown by$6.666 trillion during the Obama years so far.  Most of the burden of servicing that debt is going to fall on the middle class (if the middle class is able to survive that long).

#15 According to the Congressional Budget Office, interest payments on the national debt will nearly quadruple over the next ten years.

#16 Back in 1999, 64.1 percent of all Americans were covered by employment-based health insurance.  Today, only 54.9 percent of all Americans are covered by employment-based health insurance.

#17 More Americans than ever find themselves forced to turn to the government for help with health care.  At this point, 82.4 millionAmericans live in a home where at least one person is enrolled in the Medicaid program.

#18 There are 46.5 million Americans that are living in poverty, and the poverty rate in America has been at 15 percent or above for 3 consecutive years.  That is the first time that has happened since 1965.

#19 While Barack Obama has been in the White House, the number of Americans on food stamps has gone from 32 million to 47 million.

#20 While Barack Obama has been in the White House, the percentage of working age Americans that are actually working has declined from60.6 percent to 58.6 percent.

#21 While Barack Obama has been in the White House, the average duration of unemployment in the United States has risen from 19.8 weeks to 37.1 weeks.

#22 Middle-wage jobs accounted for 60 percent of the jobs lost during the last recession, but they have accounted for only 22 percent of the jobs created since then.

#23 It is hard to believe, but an astounding 53 percent of all American workers make less than $30,000 a year in wages.

#24 Approximately one out of every four part-time workers in America is living below the poverty line.

#25 According to the most recent numbers from the U.S. Census Bureau, an all-time record 49.2 percent of all Americans are receiving benefits from at least one government program each month.

#26 The U.S. government has spent an astounding 3.7 trillion dollarson welfare programs over the past five years.

#27 Only 35 percent of all Americans say that they are better off financially than they were a year ago.

#28 Only 19 percent of all Americans believe that the job market is better than it was a year ago.

As if the middle class didn’t have enough to deal with, now here comes Obamacare.

As I have written about previously, Obamacare is going to mean higher taxes and much higher health insurance premiumsfor middle class Americans.

Not only that, but millions of hard working Americans are going to end up losing their jobs or having their hours cut back thanks to Obamacare.  For example, a fry cook named Darnell Summers recently told Barack Obama directly that he and his fellow workers “were broken down to part time to avoid paying health insurance“…

We Are Approaching A Global Economic Meltdown – Read all about it Now!! Do you think we will get what we deserve as a nation?

  Not too many people in America are paying attention to the upcoming doom on our global economy. I seem to have put up enough articles to warn and prepare those who got their mountains of golds in our markets and banks. These people are at risk of loosing their golden eggs if they don’t figure out other alternatives fast.                                                                                                                            Most of the 1% people around the world, with lots of money  are already doing and know what to do, as they are putting poor people into their graves while amassing more wealth. Check out the Congress and Senate houses in the up coming months and see how they are going to finish the poor people soon. If you don’t believe we are approaching global economic meltdown wait for another government shutdown in February.                                                       Wake up people of Americas! and start hoarding on medical supplies, can foods, iodine etc… Those things will skyrocket in prices when the meltdown hit!  Your heard it here!; don’t say you’re not warned…. Just check out the early warning signs below….

20 Early Warning Signs That We Are Approaching A Global Economic Meltdown

By Michael Snyder (The Economic Collapse Blog | Original Link)
2013-02-26-capitalism-is-not-working

Have you been paying attention to what has been happening in Argentina, Venezuela, Brazil, Ukraine, Turkey and China?  If you are like most Americans, you have not been.  Most Americans don’t seem to really care too much about what is happening in the rest of the world, but they should.  In major cities all over the globe right now, there is looting, violence, shortages of basic supplies, and runs on the banks.  We are not at a “global crisis” stage yet, but things are getting worse with each passing day.  For a while, I have felt that 2014 would turn out to be a major “turning point” for the global economy, and so far that is exactly what it is turning out to be.  The following are 20 early warning signs that we are rapidly approaching a global economic meltdown…

#1 The looting, violence and economic chaos that is happening in Argentina right now is a perfect example of what can happen when you print too much money

For Dominga Kanaza, it wasn’t just the soaring inflation or the weeklong blackouts or even the looting that frayed her nerves.

It was all of them combined.

At one point last month, the 37-year-old shop owner refused to open the metal shutters protecting her corner grocery in downtown Buenos Aires more than a few inches — just enough to sell soda to passersby on a sweltering summer day.

#2 The value of the Argentine Peso is absolutely collapsing.

#3 Widespread shortages, looting and accelerating inflation are also causing huge problems in Venezuela

Economic mismanagement in Venezuela has reached such a level that it risks inciting a violent popular reaction. Venezuela is experiencing declining export revenues, accelerating inflation and widespread shortages of basic consumer goods. At the same time, the Maduro administration has foreclosed peaceful options for Venezuelans to bring about a change in its current policies.

President Maduro, who came to power in a highly-contested election last April, has reacted to the economic crisis with interventionist and increasingly authoritarian measures. His recent orders to slash prices of goods sold in private businesses resulted in episodes of looting, which suggests a latent potential for violence. He has put the armed forces on the street to enforce his economic decrees, exposing them to popular discontent.

#4 In a stunning decision, the Venezuelan government has just announced that it has devalued the Bolivar by more than 40 percent.

#5 Brazilian stocks declined sharply on Thursday.  There is a tremendous amount of concern that the economic meltdown that is happening in Argentina is going to spill over into Brazil.

#6 Ukraine is rapidly coming apart at the seams

A tense ceasefire was announced in Kiev on the fifth day of violence, with radical protesters and riot police holding their position. Opposition leaders are negotiating with the government, but doubts remain that they will be able to stop the rioters.

#7 It appears that a bank run has begun in China

As China’s CNR reports, depositors in some of Yancheng City’s largest farmers’ co-operative mutual fund societies (“banks”) have been unable to withdraw “hundreds of millions” in deposits in the last few weeks. “Everyone wants to borrow and no one wants to save,” warned one ‘salesperson’, “and loan repayments are difficult to recover.” There is “no money” and the doors are locked.

#8 Art Cashin of UBS is warning that credit markets in China “may be broken“.  For much more on this, please see my recent article entitled “The $23 Trillion Credit Bubble In China Is Starting To Collapse – Global Financial Crisis Next?

#9 News that China’s manufacturing sector is contracting shook up financial markets on Thursday…

Wall Street was rattled by a key reading on China’s manufacturing which dropped below the key 50 level in January, according to HSBC. A reading below 50 on the HSBC flash manufacturing PMI suggests economic contraction.

#10 Japanese stocks experienced their biggest drop in 7 months on Thursday.

#11 The value of the Turkish Lira is absolutely collapsing.

#12 The unemployment rate in France has risen for 9 quarters in a row and recently soared to a new 16 year high.

#13 In Italy, the unemployment rate has soared to a brand new all-time record high of 12.7 percent.

#14 The unemployment rate in Spain is sitting at an all-time record high of 26.7 percent.

#15 This year, the Baltic Dry Index experienced the largest two week post-holiday decline that we have ever seen.

#16 Chipmaker Intel recently announced that it plans to eliminate5,000 jobs over the coming year.

#17 CNBC is reporting that U.S. retailers just experienced “the worst holiday season since 2008“.

#18 A recent CNBC article stated that U.S. consumers should expect a “tsunami” of store closings in the retail industry…

Get ready for the next era in retail—one that will be characterized by far fewer shops and smaller stores.

On Tuesday, Sears said that it will shutter its flagship store in downtown Chicago in April. It’s the latest of about 300 store closures in the U.S. that Sears has made since 2010. The news follows announcements earlier this month of multiple store closings from major department stores J.C. Penney and Macy’s.

Further signs of cuts in the industry came Wednesday, when Target said that it will eliminate 475 jobs worldwide, including some at its Minnesota headquarters, and not fill 700 empty positions.

#19 The U.S. Congress is facing another deadline to raise the debt ceiling in February.

#20 The Dow fell by more than 170 points on Thursday.  It is becoming increasingly likely that “the peak of the market” is now in the rear view mirror.

And I have not even mentioned the extreme drought that has caused the U.S. cattle herd to drop to a 61 year low or the nuclear radiation from Fukushima that is washing up on the west coast.

In light of everything above, is there anyone out there that still wants to claim that “everything is going to be okay” for the global economy?

Sadly, most Americans are not even aware of most of these things.

All over the country today, the number one news headline is about Justin Bieber.  The mainstream media is absolutely obsessed with celebrity scandals, and so is a very large percentage of the U.S. population.

A great economic storm is rapidly approaching, and most people don’t even seem to notice the storm clouds that are gathering on the horizon.

In the end, perhaps we will get what we deserve as a nation.