Archives for October 2012

October 2012 - Page 20 of 20 - Money Morning - Only the News You Can Profit From

We're Deep In The March Toward Economic Socialism

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Have you noticed that the world is on a creeping – some (that would be me) would say cascading – slide into socialism?

It started with one giant step in the direction of economic socialism.

Economic socialism is specifically the shared risk the public has been yoked into pulling on behalf of banks.

The unmistakable and indelible footprints of socialism's latest forward march have been made by collectivist central bankers, pushed forward (at least that's the direction for them) by their constituents, the bankers of the world.

The bankers' jackboots are filled with stinking feet itching from the fungus of greed. And sadly, the sole of those boots bears the unmistakable "Made in America" stamp.

What's flooded into all those succeeding footprints is the stagnant future we all face. The march towards global hegemony of bankers' birthrights makes that evident.

It's not ironic that bankers espouse capitalist, free-market doctrines, but under cover of their ostensible handlers – their central bankers – prosper and propagate behind a Marshall Plan whose manifesto is socialized risk; it's sickening.

The moral hazard of socialized risk, of economic socialism, is unfettered.

The United States let the biggest banks in America get bigger. We let them bridle us, saddle us, and ride us into the ground. And they are all bigger now.

How can there be any free market discipline if there is no free market? How can moral hazard be corralled if there are no fences around the risks banks are allowed to take, given their size and power?

We're facing QE4ever (that's quantitative easing) on account of the banks being subject to lawsuits and an attack on their capital.

Oh, you didn't get that?

Here's the real reason we have stimulus to the nth degree here in America…

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U.S. Stocks 2012: Can Bulls Keep the Charge Into Q4?

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Historically, September hasn't been kind to stocks.

But a noticeable trend is emerging.

In the past seven Septembers, the Dow Jones Industrial Average has risen five times. And while the last trading day of September 2012 ended down, it was an up month for the Dow.

In fact, the Dow has now risen in 11 of the past 12 months (May saw a 6% decline). The last time markets enjoyed that kind of stellar streak was in 1959.

For the third quarter, the Dow tacked on 4.3%, the Standard & Poor's 500 Index rose 5.8% and the Nasdaq climbed 6.2%

Year-to-date, all three major indexes have enjoyed robust gains. They headed into the fourth quarter up 10%, 14.6% and 19.6% year-to-date, respectively.

Commodities also ran higher in the third quarter. Gold glowed, gaining 8%, oil gushed higher by 8%, and the Dow Jones-UBS Commodity Index surged 15%. Gold, up 11% in 2012, and silver, up a sterling 24% so far this year, are both expected to benefit further as the Fed's free monetary stance weighs on the value of the dollar and inflation worries are amplified.

Most of September's gains came during the first two weeks as markets anticipated a third round of quantitative easing. The Fed delivered at the Sept. 13 Federal Open Market Committee (FOMC) meeting, and stocks muddled through the rest of the month suffering from a case of buy on the rumor and sell on the news.

"The third quarter story was really simple. The performance was propelled by the generosity of global central bankers," Rex Macey, chief investment officer at Wilmington Trust told USA Today.

Now let's take a look at if this momentum will surge into the fourth quarter.

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U.S. Food Prices 2013: Just How Bad is This Bacon Shortage?

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Americans, at least the ones who eat meat, love bacon.

In the late 1990s, the average American consumed just under 17 pounds of bacon per year. By 2007, that number had risen to almost 18 pounds of the pork delicacy on an annual basis.

Unfortunately, consumers the world over might be forced to shell out more for their bacon next year due to escalating food inflation.

Britain's National Pig Association (NPA) last week called a global bacon and pork shortage "unavoidable," citing shrinking herds. The trade group said production fell across Europe last year and is declining again in 2012, according to CBS News.

This is not just a Europe-specific problem. Citing the ravages of the Midwest droughts, the U.S. Department of Agriculture said in August that U.S. hog producers are paring production in an effort to control costs.

But before you stock up for the coming "Aporkalypse," will this shortage really mean no bacon in 2013?

"If you define a shortage as a situation where product cannot be found or where buyers must wait in lines to buy a product, the answer is no," Cindy Cunningham, a spokeswoman for the Des Moines, Iowa-based National Pork Board, told the site Life's Little Mysteries via e-mail. "But the quantity of pork available to consumers in the U.S. and the rest of the world will decline in 2013, due to high feed costs and significant financial losses by producers."

Indeed, prices will rise. Some estimates forecast a 2%-3% increase, while the NPA said prices could double as production falls 10%.

The real trouble with this situation is that food inflation is not limited to bacon or other pork products.

In fact, consumers in 2013 will likely feel an added pinch in almost every aisle of the local grocery store.

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Fiscal Cliff: How Each Candidate Plans to Save Us

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America is moving closer to falling off the dreaded fiscal cliff, but Congress continues to move at a snail's pace in addressing the pressing subject.

And while the nation waits for a resolution, the costs of doing nothing are rising, with U.S. taxpayers' money at risk.

Lawmakers have taken a "hurry-up-and-wait" stance, putting off until after the November presidential election any decision-making about the most crucial matter currently facing Congress.

At issue is whether to extend some or all of the Bush-era tax cuts and how to handle the nearly $1 trillion in spending cuts slated to kick-in starting Jan. 1.

If the expiration of tax cuts comes to fruition, the result will be the biggest tax increase ever levied on Americans (Taxmageddon 2013).

If the spending cuts start rolling out, thousands of jobs will be lost, our country's security will be put at risk, businesses will sorely suffer and programs that rely on government contracts will disappear.

With just a few weeks before ballots are cast for our next president, the looming fiscal cliff has become a heated topic on campaign trails. Falling off the cliff would undoubtedly thrust the struggling U.S. economy into a recession in 2013, a consequence neither contender wants to tackle.

So how do they plan to avoid the fiscal cliff? Let's take a look.

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FCC to Agree on AT&T's WCS Plan - Analyst Blog

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The Federal Communications Commission (FCC) is reviewing AT&T Inc.’s (T) proposal to ease rules for the 4G LTE deployments. The commission is planning to sanction the use of the 2.3 GHz Wireless Communication Services (WCS) band into spectrum for deployment of LTE services. The final approval is expected by the end of this month. The […]

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Rating Action on Progressive Corp. - Analyst Blog

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Fitch Ratings reiterated Issuer Default Rating (“IDR”) at 'A+', senior debt ratings at 'A' and Junior subordinated debt 'BBB+' of Progressive Corp. (PGR), according to Reuters. Concurrently, the rating agency reiterated the Insurer Financial Strength (“IFS”) rating at 'AA' of the operating subsidiaries of the company. All the ratings carry a stable outlook. The ratings […]

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American Woodmark Corp. - Aggressive Growth

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Shares of American Woodmark Corporation (AMWD) hit a new 52-week high of $22.00 on August 21, the day of its fiscal first quarter 2013 earnings release that saw an astounding surprise of 333.33%. This Zacks #2 Rank, manufacturer and distributor of cabinets and vanities sees bright prospects ahead with the demand for new home construction […]

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We Just Smacked Our Fourth "Double"

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Thanks to the recent surge in gold prices, one group of Money Morning readers are up as much as 110% on Sandstorm Gold LLC (TSE: SSL) – meaning they just earned the coveted 100% gain that investors refer to as "a double."

And it isn't the first double these readers have been able to cash in on.

In fact, it's the fourth—in just 13 months.

Since Aug. 11, 2011, our special research recommendations have resulted in such windfall gains as:

  • As much as 148% on blood-cancer biotech Pharmacyclics Inc. (Nasdaq: PCYC).
  • As much as 144% on European biotech Galapagos NV (OTC ADR: GLPYY).
  • As much as 146% on an NYSE-listed cybersecurity play (which we've just re-recommended).
  • And as much as 110% on Sandstorm.

We believe that several of those picks – such as the cybersecurity play – still have room to run.

But we see even bigger potential for the focus of our latest premium research report – a biotech that's making the leap from research to revenue.

It has the potential to be our fifth "double."

This tiny venture is already up and running in Europe, and has already filed for U.S. Food & Drug Administration (FDA) approval in the U.S. market.

After this biotech gets that approval, we believe this stock could double as well – on its way to a triple.

According to the feedback we've received, our readers have certainly enjoyed the run.

Subscriber Reggie P. told us that our "recommendations and insight have been spot on," while fellow reader Leroy W. said that "being on a fixed income makes the gains all the sweeter."

To see what has Reggie and Leroy so excited – and find out about our latest recommendation click here.

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New "Protein Chips" Could Save Your Life Someday and Make You a Bundle

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Ever since some wag came up with the term "Silicon Valley" in the 1970s, investors have thought of semiconductors as the brains behind computers.

That was then. This is now…

Today, semiconductors are about a lot more than computers.

In a recent breakthrough, a new kind of computer chip was able to spot disease that doctors have a tough time finding on their own. This new field of cutting-edge high tech could have a big impact on the health of millions around the world.

See, we are getting very close to the point when your doctor will be able to detect not just what type of disease you have but which of many versions is affecting you.

And with these new chips they will have the answer in a matter of minutes.

That will speed up everything — the diagnosis, the drugs and — more to the point — your return to good health.

And needless to say, these breakthrough new chips could make a few savvy investors quite rich.

This new field — loosely called "lab on a chip" — holds so much promise that a key research arm of the Pentagon will spend at least $65 million to help get it out of the lab and into the real world.

In a moment, I'll give you the details. But first there is this recent new development.

The Power of "Protein Chips"

Intel Corp. (NasdaqGS:INTC) has joined forces with a team from Stanford University School of Medicine. The Intel-Stanford team is placing proteins directly on chips to detect disease and help drug firms come up with new compounds.

Just last month, the team said it had synthesized an array of short pieces of proteins on silicon chips normally used as computer microprocessors. Team members said the process will help doctors quickly figure out which of the many possible drugs will work best for each patient.

Here's the thing. Proteins are vital to our health.

They are large, complex molecules that do most of the work in cells. We need them for the structure, function, and regulation of the body's tissues and organs.

Turns out proteins also serve as "markers" for certain diseases…

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