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Wednesday's "Earnings Beat" Makes This The Perfect "Bad-Market" Tech Stock

In last week’s Private Briefing report Our Experts Show You the Stocks to Pick in a ‘Stock-Picker’s Market’,” Money Map Press Chief Investment Strategist Keith Fitz-Gerald identified SanDisk Corp.(NasdaqGS: SNDK) as one of three stocks to buy in the face of the stock market sell-off.

And now we see why…

  • Eurozone

  • Gold Prices Surge and Will Keep Climbing as Investors Protect Against European Debt Crisis Gold prices yesterday (Wednesday) broke through to a record high, as investors feared the Eurozone bailout plan would debase the euro and escalate inflation.

    Gold for June delivery continued its record-breaking Tuesday climb to hit $1,243.10 an ounce Wednesday. The contract reached an intraday high of $1,249.20 an ounce. Spot gold prices hit $1,244.45 an ounce, up almost 20% in the past three months.

    Gold's reputation as a "safe haven" investment causes the metal's price to move inversely to investor confidence, which has been rattled by the Greece debt crisis and last week's 1000-point plunge in the Dow Jones Industrial Average.

    Read More...
  • Does the EU Bailout Signal the Euro's Demise? Does the European Union (EU) bailout signal an end for the euro currency?

    Investment icon Jim Rogers and lauded economist Nouriel Roubini think so.

    And they may be right.

    Eurozone governments were forced to spring into action on Sunday to defend the besieged euro. The currency has come under tremendous pressure as investors wonder if Greece's fiscal crisis will spread to other heavily indebted nations.

    Greece's deficit-to-gross domestic product (GDP) ratio is a staggering 13.6%, but Greece is No. 2 on the list of over-spenders. No. 1 is Ireland, whose deficit-to-GDP ratio is 14.3%. Spain comes in third at 11.2%; and Portugal is fourth at 9.4%.

    The euro in the past six months has dropped by about 17% against the dollar, as investors rushed to ditch the currency.

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  • How the Greece Bailout Turned Gold Into a 'Must-Have' Investment With so much uncertainty in the U.S. stock market - not to mention the debt-contagion concerns emanating from Greece and other European Union (EU) countries - it's more important than ever for investors to hold "hard assets," such as gold and other commodities.

    In my view, what's happening in Europe is particularly important for investors to be aware of and understand. The so-called " shock-and-awe" bailout strategy undertaken by the EU and the International Monetary Fund (IMF) - which establishes a $1 trillion rescue package for member-countries facing financial crisis - will not be the answer.

    To see how gold and other hard assets are becoming "must-have" investments, please read on... Read More...
  • Taipan Daily: Trillion Shmillion – Europe's "Common Currency" Is Still Doomed As far as the euro goes, the trillion-dollar "shock and awe" program was a shocking disappointment. Here's why.

    "... while Europeans no longer fear foreign armies, they are starting to fear foreign bondholders. Europe's existence as a "lifestyle superpower' has depended on an ample supply of credit... "
    - Gideon Rachman, Financial Times

    "...this is just another example of a short-term, leveraged solution, that merely adds to the burden of future problems..."
    - Marc Ostwald, Monument Securities

    Read More...
  • Could the British General Election's 'Hung Parliament' Lead to a Resurgent U.K. Economy? In the depths of the Depression-ridden 1930s, two years after a British General Election that yielded a "hung parliament" - came the formation of a coalition government that resulted in one of the strongest decades the British economy has ever enjoyed.

    Seventy-nine years later, in the throes of another global downturn - with another "hung parliament" and yesterday's (Tuesday's) resignation of Britain's prime minister paving the way - could history be repeating itself?

    To find out how Britain's election results could nurture an economic rebound, please read on... Read More...
  • The Eurozone Bailout Plan Puts a $962 Billion Price Tag on Saving the Euro – But Is It Finally Enough? European Union (EU) finance ministers yesterday (Monday) announced a $962 billion (750 billion euros) Eurozone bailout package that rallied global markets with a drastic new attempt to prevent a euro collapse and contain the Greek debt crisis.

    European policy makers agreed to the massive effort in a 14-hour meeting Sunday, trying to beat the start of Asian markets. The aid plan will include $77 billion (60 billion euros) from a European Union emergency fund (the first lifeline to be tapped for aid), $562 billion (440 billion euros) from Eurozone governments, and $320 billion... Read More...
  • Despite Spiraling Contagion Fears, Spain Debt Worries Are Overblown It had a huge housing boom, and is now dealing with the fallout. It has a left-of-center government and a big budget deficit, but relatively low debt in relation to its gross domestic product (GDP). And it has a worrisome current account deficit.

    I'm talking, of course, about Spain, which investors clearly fear will be the next domino to fall as a result of the Greek debt contagion.

    I disagree.

    To see why Spain will shrug off the Greek contagion, please read on... Read More...
  • Taipan Daily: Could Continent-Wide Bank Runs Collapse the Eurozone? The eurozone's woes are giving us a preview of what could eventually happen in the United States (but not before Europe is engulfed first). As fears of sovereign debt crisis mount, the debt "contagion" spreads. It is not just Greece that has investors afraid, but Portugal. And Spain... and Italy... and so on.

    The problem is classic, and long ago highlighted by Austrian economics. Building up a lot of debt, to make a slightly crass analogy, is like putting on a bunch of weight. It's hard work getting the debt off - the same as it is taking weight off.

    The way to lose weight is to eat right and exercise. The way to get out of debt is to cut back on spending and increase productivity.

    Read More...
  • $147 Billion Bailout Package for Greece Won't End European Debt Crisis In an effort to stabilize the widening European debt crisis, the International Monetary Fund (IMF), together with Eurozone countries, agreed to extend an unprecedented $147 billion (110 billion euro) bailout package to Greece in return for deep cuts to the country's budget.

    Under the three-year agreement reached late Sunday, Greece would receive $105 billion (80 billion euros) in loans from other Eurozone members and $40 billion (30 billion euros) from the IMF. The planned rescue is the largest ever attempted by the IMF and a first for the 16-member Eurozone. It still requires final approval from national governments.

    Also, the European Central Bank (ECB) said on Monday it would indefinitely accept the country's debt as collateral regardless of its credit rating. The ECB didn't release figures, but the value of Greek assets used as collateral in its liquidity-providing operations is thought to be worth tens of billions of euros.

    Many observers felt the huge bailout was designed not only to support Greece, but to shore up confidence in the euro, which has come under fire by currency traders. Just a few weeks ago, EU countries offered only $40 billion (30 billion euros) to help Greece.

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  • Debt Contagion Fear Spreads in Europe as S&P Lowers Eurozone Credit Ratings Standard & Poor's yesterday (Wednesday) lowered Spain's credit rating - just one day after downgrading the ratings of Greece and Portugal. The downgrades have prompted Germany to promise a quick release of Greece bailout funds as fears of a debt contagion spread rapidly across Europe.

    "It is probably fair to say that Tuesday, 27 April was the day that the situation in the euro area took a dramatic and rather frightening turn for the worse," credit analysts at Credit Suisse (NYSE ADR: CS) in London said in a research note. "The concern is the extent and speed of the spreading of the crisis in an environment of too many financial obligations, not all of which will be serviced, in our view, and in a crisis which in our view is about far more than Greece."

    S&P downgraded Spain's long-term credit rating one notch to AA from AA+ with a negative outlook, citing an extended period of low economic growth and high borrowing costs.

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  • Greece Activates Emergency Bailout, Testing Financial Strength of Eurozone Countries Greece on Friday officially asked to tap into a $60 billion (45 billion euro) emergency aid package after months of talks, setting into motion a bailout process that will put the financial strength of Eurozone nations to the test.

    Greece Prime Minister George Papandreou called his debt-stricken country's economy a "sinking ship," as borrowing costs reached 12-year highs and recent austerity measures didn't rally the market support needed to save Greece.

    "This is the moment. The time that was not granted to us by the markets will be given to us by the support of the Eurozone," Papandreou said.

    Read More...
  • World's Factories Manufacturing at Record Rates, Fueling Global Economic Recovery The world's factories are churning out products at record rates, fueling the global economic recovery at a faster pace than thought possible just a few months ago.

    The latest figures show factory output is growing at a record rate from the United States to China to Europe and beyond. And as manufacturing expands, economists expect the world's economies to continue to expand, creating jobs and putting money in consumer pocketbooks.

    As long as companies have plenty of cash to finance expansion, output from the world's factories should continue to grow, according to Money Morning Contributing Writer Shah Gilani, who recently launched the Capital Wave Forecast, a new trading service based on capital flows.

    Recent surveys show U.S. companies are sitting on almost $1 trillion in cash.

    Read More...
  • Foreign Markets Outshine U.S. on Investors' Increasing Appetite for Risk U.S. stocks carved out one of their patented half-percent advances last week -- a little sloppy, to be sure, yet not bad at all considering their very overbought condition.

    The stars of the global capital show this month, though, have been markets in China and Europe, as they shook off their multi-month torpor to score big wins. With a scorching 6% advance in the past two weeks, ishares FTSE Xinhua China 25 Index(NYSE: FXI) nosed up to log a +5.5% gain for the year after being negative for three months. And theishares S&P Europe 350Index (NYSE: IEV) rose 1%, putting it at flat for the year after malingering below zero.

    Click Here to Read more on which foreign markets are moving higher...

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  • How to Profit From Europe's Best-Kept Secret Here's a bit of global-investing trivia that I'll wager most folks will have a tough time answering: One of the world's finance ministers has attacked the International Monetary Fund (IMF) for encouraging governments to engage in excessive "stimulus" in 2009, thus giving themselves horrible deficit and debt problems in 2010.

    Name the country that finance minister hails from.

    I'll even give you a hint: He's not from Germany, which avoided "stimulus" but tends to be polite about the IMF and had a fairly nasty recession itself.

    Give up?

    He's from Poland.

    Although it's a surprising answer, don't be too surprised. Poland is today the most capitalist country in Europe and has become one of the most capitalist economies in the world.

    It's clearly Europe's best-kept secret.

    The story of Poland's emergence is both interesting and instructive. And during a period of growing angst and uncertainty here at home, Poland represents an interesting place to put some investment capital.

    Let me explain...

    To find out more about the profit opportunities posed by Poland, please read on... Read More...
  • Irish Banks Get Bailout as Ireland Continues Drastic Moves to Leave PIGS Behind Ireland's government will extend more aid to the nation's banks in an effort to salvage the economy and avoid going down the same path as struggling Greece.

    The Irish government has set up a "bad bank" to help the banking sector rebound from massive losses on loans to property developers. The National Asset Management Agency (NAMA) will apply an average discount of 47% to $21.5 billion (16 billion euros) of loans in the first tranche. The bank will take over a total of $107 billion ($80 billion euros) of loans, transferring the debt from the balance sheets of Ireland's biggest banks - Allied Irish Banks, PLC (NYSE ADR: AIB) and Bank of Ireland (NYSE ADR: IRE).

    "It looks like they are going to try and take all the pain now," said Stephen Taylor, strategist at Dolmen Securities. "It looks likely that at this stage the state is going to have to increase its ownership of the banks."

    Read More...