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We'll Tell You When It's Time to Tap Tesla

A week ago today, in a strategy story aimed at helping you survive and thrive in today’s whipsaw markets, Chief Investment Strategist Keith Fitz-Gerald told us to put Tesla Motors Inc. (Nasdaq: TSLA) on our “watch lists” for a likely future purchase.

“BP, Tesla is a definite ‘shopping list’ stock,” Keith told me back then. “We’ve been nibbling at it here, and have played it successfully several times. But it’s not yet at the point where I’m ready to jump all the way in. I think my rationale behind Tesla remains upbeat. I mean, you’ve got a real winning combination here – a disruptive sales model, a CEO who’s the most innovative guy on the planet, all the capital in the world that can be brought to bear. I don’t give a rat’s [tail] that New Jersey won’t let the company sell its cars there. There are much bigger opportunities. Wait ’til you see what the company does with China.”

  • Featured Story

    Maybe Romney Did Win, It's Shaping Up to Be a Rough Four Years

    By 2016, Mitt Romney may be sighing in relief that he lost Tuesday. The economic landscape for the next four years is likely to be filled with crises, and the president in office will be blamed for most of them, whatever his policies.

    Romney's destiny of quiet retirement with his automobile elevator and his Cayman Islands investments will seem greatly preferable to the struggle that awaits the re-elected President Barack Obama.

    Internationally, four more years leaves plenty of time for things to go wrong.

    To continue reading, please click here...

  • election 2012 predictions

  • If There's No Winner of Election 2012 Tomorrow, the Market Loses By most accounts, Election 2012 is expected to be very close.

    Long lines of early voters in key swing states including Ohio and Florida, the use of paper ballots in parts of New Jersey that were devastated by Hurricane Sandy, and uncertainty over the implementation of stringent new voter ID laws in several states could make for a very long night before the result of the election is known.

    While no one expects the presidential race to be as close as it was in 2000, if it is close enough that post-election legal challenges to new electoral procedures could alter the outcome, the result of the election could be delayed for... Read More...
  • There's More than Election 2012 Moving the Stock Market Today The stock market today is trading higher as investors await the results of Election 2012. By the end of tonight, barring legal battles that could delay a winner, the uncertainty surrounding the election will be over.

    But there's more than the election that's affecting markets today.

    As voters head to the polls, it's only fitting that the one economic report released today is on jobs.

    • Job openings continue sluggish trend- How Americans view the job market and what they expect it to be like under each candidate will be one of the deciding factors in this election. The Labor Department reported on Tuesday that job openings in the U.S. hit a five-month low in September, indicating that the recent drop in unemployment is not an accurate portrayal of the labor market. The number of available jobs fell by 100,000 to 3.56 million and it wasn't because more positions were filled - during September fewer people were hired, as well as fired. If you go back to December 2007, the start of the recession, there were about 1.8 people vying for each position and now that number has almost doubled to 3.4 people. "Hiring is the most costly expense for a business," Kurt Rankin, an economist at PNC Financial Services Group Inc. in Pittsburgh, told Bloomberg News. "Until a framework for policy can be determined, which will come with the election and the resolution of the fiscal cliff, businesses are not likely to ramp up hiring."
  • Who Will Win Election 2012 and Lead America Over the Next Four Years? Americans will be united in heading to the polls today (Tuesday) to decide who will win Election 2012 and be the next president and vice president. After months of experts, news reporters and the candidates inundating us with a barrage of facts and opinions, voters have the last word.

    Research finds that historically Americans' say has been swayed by very recent stock market performance. Last July, I covered Read More...
  • Election 2012: Is Today's Presidential Election More About Lost Dreams Or a New Promise? In what can only be described as a madcap dash for votes in key battleground states, President Barack Obama and Candidate Mitt Romney worked the crowds late into the night.

    As well they should. Almost every Election 2012 poll I've seen has the candidates in a neck-and-neck race headed into today's finish line.

    As of press time:

    • CNN's survey has them in a dead heat at 49% to 49%.
    • Pew Research shows Candidate Romney behind President Obama by a 50% to 47% margin.
    • The Politico/George Washington University survey reflects a tie at 48%.
    • And the latest NBC/Wall Street Journal numbers show President Obama pulling ahead with 48% compared to Candidate Romney at 47%.
    On the other hand, Intrade, which is the world's leading predictions market, shows a 67.2% probability that Obama will win. What's interesting about that is that Intrade also shows a 22.5% chance that the winner of the Electoral College will actually lose the popular vote.

    Given these mismatches, I can only hope we're not left counting chads or something equally ridiculous tonight when the polls finally close. The markets really wouldn't like that.

    As it is, all the major averages are on hold. Not literally mind you, but figuratively. Nearly every trader and institutional manager I know is treading lightly at the moment.


    Because they know that by Wednesday morning half of them will be wrong. That means they'll have to adjust both their outlooks and their portfolios.

    In the financial scheme of things, though, the election is a sideshow. The far bigger issue when it comes to your money is the fiscal cliff. And I am not alone in my thinking, either.

    A recent CNN poll suggests that 60% of market professionals are far more concerned about what's going to happen when spending cuts and tax increases hit January 1 than they are about who's in the White House.

    I don't think they're wrong to be worried, either...

    To continue reading, please click here...
  • Hurtling Over Fiscal Cliff Likely Regardless of Election Outcome Representatives of the Group of 20 (G20) industrialized countries meeting in Mexico City over the weekend begged U.S. officials attending the meeting to avoid the impending fiscal cliff in 2013.

    Chile's finance minister, Felipe Larrain told Reuters, "If we're not able to resolve the cliff, that could be the tipping point for a much more complicated scenario in the world economy."

    The G20 clearly recognizes the risk of the U.S. falling off of the fiscal cliff.

    Comparing the relative risks of the U.S. and Europe, Canadian finance minister Jim Flaherty told Bloomberg Businessweek, "In the near-term, clearly the U.S. situation is the higher risk."

    Tomorrow's presidential election may complicate the situation regardless of if U.S. President Barack Obama wins a second term or if Mitt Romney is our next president.

    Washington insiders have suggested that, unless there is a wider than expected margin of victory for either candidate, legal challenges are likely, which could put the result of the election in doubt.

    In fact, each side has hefty legal teams waiting to jump to action if the election is close.

  • What to Expect from Gold Prices If Romney Wins Election 2012 With the presidential election less than one week away, market watchers are estimating what kind of impact a Mitt Romney win would have on the markets, including gold prices.

    Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark - or higher.

    On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks.

    They wrote in a research note via Commodity Online, "While we have targeted gold prices moving above $2,000/oz. since the beginning of 2011, we believe the Fed's open-ended program of QE announced last month increases our confidence that a surge in the gold price above this level is only a matter of time."

    Yesterday (Wednesday), December gold futures closed at $1,719.10.

    But if we fast-forward to January, even March 2013, if Romney wins Election 2012, would gold prices be able to continue their upward run?

    Here's what a Romney win would do for the yellow metal.

  • Election 2012 Means the Real Bernanke Bombshells Won't Fall Until December If you were expecting big news from this week's Fed meeting it looks like you are going to be in for a long wait. This week's FOMC meeting was business as usual.

    There was no change in interest rates, no change in the determination to keep rates low into 2015 and no change in the Fed's latest solution, otherwise known as QE infinity.

    The truth is the real bombshells won't likely start until the Fed's next meeting in December. By then, the landscape could be completely changed.

    With Election 2012 still at stake, it's who controls the Oval Office that matters most when it comes to Fed policy.

    You'd never know that if all you did was watch the debates.

    Ben Bernanke may well be the second most powerful person in the country, yet his name was never mentioned-not even once. Remarkably, monetary policy was completely absent from the debates.

    Election 2012 and the Fed

    That's true even though the two candidates differ substantially when it comes to the Federal Reserve.

    For instance, Mitt Romney has repeatedly said he would not reappoint Ben Bernanke when the Fed chairman's current term ends in January 2014. Conversely, President Barack Obama has indicated his support for Bernanke and his easy money policies.

    For that matter, Bernanke himself is in an open question. He may retire in January 2014 no matter who wins Election 2012.

    However, at the December meeting one major thing will have changed: the time horizons of both investors and policymakers.

    To continue reading, please click here...
  • Tonight's Presidential Debate: Who Will Clinch the Final Face Off? For the third and final time, U.S. President Barack Obama and GOP presidential hopeful Mitt Romney will take center stage and face off tonight, with the showdown set for Lynn University in Boca Raton, Florida.

    With the two candidates running neck-and-neck - a fresh NBC News/Wall Street Journal poll shows President Obama and Romney tied at 47% -- and just 15 days until Americans cast their ballots for our 45th U.S. president, a stellar showing is imperative. Whoever wins Monday's debate will have the upper hand heading into Election Day.

    More than 60 million viewers tuned in to the first two debates which dealt with jobs, healthcare, the economy, and taxes. Romney handily won the first debate in Denver on Oct. 3 and charmed hordes of undecided voters. Then the president, who appeared glum and uninterested the first time around, came on strong in the second debate Oct. 16.

    Monday's debate will be focused on foreign policy and national security. Divided into six segments, President Obama and Romney will discuss America's position as a global leader, the Afghanistan war, the Middle East, Israel and Iran, and China's explosive rise.

    President Obama, as head of U.S. national security for the last four years, has experience Romney can't rival. The president will underscore how under his term he was instrumental in the mission that led to the capture and killing of Osama bin Laden. He will also note that he pulled troops from Iraq.

    Romney has his work cut out for him.

    His summer trips to London, Jerusalem and Poland were highlighted by several gaffes. The former Massachusetts governor needs to assure voters that he is a capable leader in the global arena by highlighting his leadership abilities.

    "Many voters are ready to fire President Obama if they see Romney as an acceptable alternative. Foreign policy has not been a big driver of this campaign but I think Romney could add some icing to his cake if people say, "Hey, this guy is on top of world affairs,'" David Yepsen, director of the Paul Simon Public Policy Center at Southern Illinois University told Reuters.

  • If Romney Wins Election 2012 Buy and Sell These Sectors Over the past several weeks, GOP presidential hopeful Mitt Romney's momentum has spiked. Recent polls place him running neck-and-neck with or even edging ahead of President Barack Obama.

    Besides strong debate performances, key factors have turned in Romney's favor.

    Myriad surveys in a dozen crucial swing states show voter's concerns are increasing regarding the mushrooming fiscal deficit, debt issues and the depressed job market, issues that favor Romney.

    Since the election won't be decided for another two weeks there is still time to act if you expect a Romney victory.

    Here's what several top Wall Street analysts think a Romney win would mean for stocks. To continue reading, please click here...
  • Jim Rogers on Election 2012: "A Pox on Both Their Houses' Investing legend Jim Rogers says it doesn't matter who wins Election 2012.

    In his view, both President Barack Obama and challenger Mitt Romney are equally bad.

    "I repeat Shakespeare: A pox on both their houses as far as I'm concerned," Rogers said in a Breakout interview this week. "These are the guys who got us into this problem, so why does anybody think they will get us out?"

    The "problem" to which Jim Rogers is referring to is the sluggish U.S. economy, dragged down by the huge $16 trillion federal debt and annual budget deficits in excess of $1 trillion.

    Rogers predicted that regardless of who wins Election 2012, things won't get better.

    "If Mr. Obama wins, his friends are gonna get more money. If Mr. Romney wins, his friends are gonna get more money. But you and I, and everybody watching this show are gonna be worse off because the debt's going to go higher, and the turmoil is gonna get worse."

    Rogers blames both major parties for the nation's economic ills.

    "All of them have gotten us into this situation," Rogers said. "Look at the last 50 years of American history. Republicans, Democrats, Republicans, Democrats .... It's not doing us any good. None of us are benefiting by what's been going on in Washington."

    Jim Rogers is so down on U.S. politicians that he has absolutely no preference as to who wins the White House.

    "I will vote the protest vote. I nearly always vote the protest vote," Rogers said without specifying which third-party might get his support.

    In Rogers's view, a vote for either major party just perpetuates the problem.

    "If they keep sending us turkeys, and we keep voting for turkeys, they'll send us more turkeys," he said.

  • Romney Tax Plan Details Still a Mystery Despite All the Talk While GOP presidential hopeful Mitt Romney has provided a bit more information on his tax plan, many key details are still missing - meaning it's tough to figure out exactly what you'd owe Uncle Sam if Romney wins Election 2012.

    Romney and vice-presidential running mate Rep. Paul Ryan, R-WI, have outlined several broad Romney tax plan goals: do not increase the deficit; do not raise taxes on middle income taxpayers; and do not reduce the share of taxes paid by higher-income Americans.

    Romney also has repeatedly made it known he favors an extension of the Bush-era tax cuts for all income levels.

    Ryan has said a Romney administration would be able to work with Democrats in Congress to pass a tax re-write, which includes a 20% reduction in individual tax rates across the board, a 10% reduction for businesses and a 20% cut in the top tax rate from 35% to 28%. (President Barack Obama plans to raise that rate to 39.6%).

    But neither Ryan nor Romney has yet to give full details on which tax breaks will be scaled back to avoid adding to the mushrooming federal deficit, which topped $1 trillion in 2012 for the fourth straight year.

    The lack of Romney tax plan details prompted President Obama to call it "sketchy" at the second presidential debate.

    "Governor Romney was a very successful investor," said the president. "If somebody came to you, governor, with a plan that said, here, I want to spend $7 or $8 trillion, and then we're going to pay for it, but we can't tell you until maybe after the election how we're going to do it, you wouldn't have taken such a sketchy deal and neither should you, the American people, because the math doesn't add up. We haven't heard from the governor any specifics beyond Big Bird and eliminating funding forPlannedParenthood in terms of how he pays for that."
    To continue reading, please click here...
  • Tonight's VP Debate: Can Ryan Counter-Punch Biden's Jabs? If tonight's vice-presidential (VP) debate were a boxing match it would be expected to go all 12 rounds.

    Squaring off at 9 p.m. EDT in Danville, Kentucky are Vice-President Joe Biden and vice-presidential candidate Paul Ryan, in their first and only debate.

    After the shellacking Mitt Romney gave President Obama in the first presidential debate many political experts are expecting Biden to come out on the offensive in an attempt to regain some of the president's lost ground.

    Paul Ryan, in his first national debate, knows that Biden is looking to attack where the president did not. As the Chair of the House Budget Committee, Ryan should be ready to defend his running mate and continue the attack on the president. Expect Ryan to focus on the economy, specifically federal debt, unemployment and job creation.

    "I'd be surprised if there weren't far more fireworks in this debate than there were in the first presidential debate," University of Maine political science professor Mark Brewer told Reuters.

    While the debate will focus on domestic and foreign policies, here are other things you should watch for.

    To continue reading, please click here...
  • Election 2012: Five Tough Questions That Need to be Asked at Tonight's Debate I hate to break it to Ben Affleck, but he is wrong about the election. With just 34 days left until voters head to the polls, the election 2012 race is still completely up for grabs.

    Even still, in a recent interview with the AP, Affleck lumped Romney comfortably in with the likes of such memorable losers as Michael Dukakis, Al Gore and Bob Dole.

    However, a recent a poll released by Rasmussen yesterday would seem to suggest this contest is far from over.

    According to the survey, President Obama only leads Mitt Romney by a razor slim advantage of 48% to 47%--well within the margin of error.

    That makes tonight's presidential debates in Denver all the more critical for both candidates-especially since they will be devoted primarily to the economy and domestic policy.

    Of course, here at Money Morning we have our own ideas on how the economy ought to be run, and a few questions of our own for each of tonight's debaters.

    But we'll bet most of the tough questions will be completely missed by the media, who have an altogether-too-exalted an idea of the candidates' competence.

    With that in mind, here are five questions that should get asked at tonight's debate-but won't.

    Five Questions About the Economy That Beg To Be Answered

    1. Mr. President, Governor, study after study has shown that the healthcare system in this country is absorbing a larger and larger share of our Gross Domestic Product, and will bankrupt us all by 2050. Yet neither of you has any reliable plans to deal with this.
    2. Mr. President, your Obamacare makes matters worse. Governor, your Romneycare in Massachusetts has also run wildly over budget and your Vice President's plan loads most medical cost increases onto individuals who get sick.

      Other countries cope with medical cost inflation better than us; which of their schemes should we adopt?

      To continue reading, please click here...
    3. If Romney Wins Election, Make Sure You Own These Six Stocks With U.S. President Barack Obama holding a narrow lead in the polls over Republican challenger Mitt Romney, investors need to be prepared for a win by either candidate.

      Strangely enough, history has shown that the stock market actually does much better under Democratic presidents than Republican ones - three times better since 1913, according to The New York Times, and more than five times better since 1960.

      Of course, that doesn't mean there won't still be plenty of stock market opportunities if Romney wins the election. It just means investors must be a bit more selective, targeting leading stocks in industries that have a history of prospering under GOP policies, especially those directly affected by planks in the Republican platform.

      Sectors that fall into this category include certain health insurers, medical device makers, energy companies, domestic oil exploration outfits, utilities, transportation firms (especially railroads), and defense contractors.

      Let's take a look.

      To continue reading, please click here...
    4. If President Obama Wins Election 2012, What's Next? With nearly four years under President Barack Obama's reign, America's economic recovery is struggling to pick up speed and unemployment remains above an unhealthy 8%.

      The Obama administration has repeatedly been harshly criticized for bailing out corporate businesses, for the massive national deficit and for the creation of the controversial healthcare bill dubbed Obamacare.

      Yet, with just six weeks left before Americans head to the polls to cast their vote for the 45th president, President Obama has managed to eke out a slight lead.

      In a mid-September interview with "60 Minutes," President Obama defended his term and said he and we need more time with him in office.

      Here's what to expect if President Obama wins Election 2012.

      To continue reading, please click here...