Press Esc to close

Welcome to Money Morning - Only the News You Can Profit From.

Close

How to Rent a Fortune

With a 37% gain in The Blackstone Group LP (NYSE: BX) since late July, we’ve done really well with our targeted investment in real estate.

And with very quick gains of 9% in Brazilian-food processor BRF SA (NYSE ADR: BRFS), 5.2% in South American agricultural play Adecoagro SA (NYSE: AGRO) and 1.6% in high-tech agribusiness player  Neogen Corp. (NasdaqGS: NEOG), we’re doing well with our plays on (pockets of) accelerating U.S. inflation.

Today we’re going to combine the two concepts and employ a very simple formula we believe will add to your profits…

  • U.S. Economy

  • Obamacare's War on Full-Time Jobs Will Sucker Punch Economy Colorful pills isolated

    Obamacare's rules regarding hours worked and employer-sponsored healthcare coverage have entire industries looking at cutting down on their number of full-time employees in favor of more part-time employees.

    Large industries affected include hotels, restaurants and retailers, as well as small businesses of all stripes.

    In essence, the hefty financial burden imposed by Obamacare for having too many full-time employees is creating a huge incentive for many employers to cut workers' hours, or, in some cases, avoid hiring altogether.

    Tens of millions of American workers are at risk of being denied employer-sponsored health insurance as a result, and will end up with less pay to boot.

    It could be a disaster for the still-lagging U.S. economy.

    "If you want to have reduced work, lower wages and economic stagnation, this is a great way to do it," Ed Haislmaier, a senior research fellow at the Heritage Foundation, told FOX News.

    To continue reading, please click here...

    Read More...
  • U.S. Economy to Get Jolt from 1.2 Million Homebuilding Jobs Hardhat tools copy

    An accelerating rebound in new home construction over the next two years should finally give the U.S. economy the jump-start it needs to progress toward a truly robust recovery.

    New home construction continues to bounce back from the lows of 2009, after the housing bubble burst, but still has a long way to go.

    With housing one of the prime drivers of the U.S. economy - historically construction accounts for 5% of the U.S. gross domestic product (GDP) and related economic activity another 13% - a spike of activity in this area could drive the growth that's long been lacking from the recovery.

    "A revival in new home construction will have a huge stimulative effect on the larger economy," Brad Hunter, chief economist for housing research firm Metrostudy, told Bloomberg News. "When home construction goes up, so does demand for furniture, tile, lumber, concrete, draperies, paint and appliances of all sorts."

    To continue reading, please click here…

    Read More...
  • Stock Market Today Reacts to China and Gold

    Disappointing news that China's economic growth slowed in the first quarter sent the stock market today (Monday) reeling.

    Just before noon, the Dow Jones Industrial Average dropped 0.61% to 14,773.75. The Standard and Poor's 500 Index slumped 0.75% to 1,576.87. The Nasdaq fell 0.80% to 3,268.45. Oil slipped 3.44% to $88 a barrel.

    And the biggest loser of the day, gold plunged as much as 6.3%, hitting a low of $1,384.60.

    Dragging stocks down was a report that China's economy grew at 7.7% in Q1, weaker than the 8% growth economists were expecting, and down from Q4's 7.9%. This rattled global markets, as fears spread that there would be continued lower demand for Chinese goods and services.

    "The international situation continues to concern people, both in regard to Europe and China," John Carey, a fund manager for Pioneer Investment Management Inc., told Bloomberg News. "People are watching for some signs of improvement in both areas. Otherwise we're just in the early stages of earnings season, so people will have one eye on what's going on outside the U.S. and another close eye on what's happening with regard to earnings."

    More than 75 members of the S&P 500 are scheduled to report earnings this week. Here are some to watch, along with the biggest headline makers in the stock market today.

    To continue reading, please click here...

    Read More...
  • Five Reasons U.S. Economy Bears Have Turned Bullish Bear bull

    Recent data has silenced some of the loudest U.S. economy bears.

    According to a new Bloomberg survey of 69 economists, gross domestic product likely grew at a 3% annualized clip in Q1. That compares with the 2% pace forecast in March and 1.6% in December.

    Morgan Stanley (NYSE: MS) Chief U.S. Economist Vincent Reinhart went from an estimate of 0.8% in December to 3%. Brain Kasman of JPMorgan & Chase & Co. (NYSE: JPM) upped his projection from 1% to 3.3%.

    "We are surprised that there wasn't a bigger and more immediate hit to spending" by consumers, Reinhart told Bloomberg. "There is an underlying momentum in spending, which means that sequestration and the tax increase will only lead to a monetary pause."

    Kasman shared that sentiment when he said on an April 5 conference call, "What happened at the beginning of the year was a genuine surprise in terms of how well the economy held up."

    Expansion is expected to slow to 1.5% in the current quarter before picking up to an average 2.4% over the second half of 2013.

    Here are five reasons these economists have raised their growth targets.

    To continue reading, please click here...

    Read More...
  • U.S. Economy: These Jobs Numbers Point to Slower Growth in Q2

    Anyone hoping the U S. economy in 2013 would gain strength from job growth needs to check out Wednesday's ADP National Employment Report.

    According to ADP, the U.S. economy added 158,000 private-sector jobs in March, well below projections of 200,000 - 215,000. That's the smallest gain since October when companies hired just 148,000.

    March's lackluster showing was mainly due to lower job creation in construction. The industry enjoyed robust hiring in the months following late October's Hurricane Sandy. In its wake, the superstorm left behind upwards of $50 billion in damages.

    A tepid recovery in the housing market in Q1 also helped the sector in January, with recent monthly gains in construction averaging 35,000.

    In March, however, no new construction jobs were added.

    "If that's the case, underlying job growth is not changed appreciably," Moody's Analytics chief economist Mark Zandi told Reuters. He estimates overall employment growth is running near 175,000 a month.

    March's jobs report included a revised 237,000 gain for February from the previously reported 198,000. But January's numbers were revised down to 177,000 from 215,000.

    So what does this mean for Friday's U.S. jobs report?

    To continue reading, please click here...

    Read More...
  • Stock Market: Q1 Was One for the Record Books, So What's Next?

    The U.S. stock market logged an impressive first quarter.

    Shrugging off budget cuts, tax hikes, and more Eurozone misery, U.S. stocks climbed to record territory on several occasions.

    On March 5, the Dow broke through its record close of 14,165, previously hit Oct. 9, 2007. Meanwhile, the S&P has been flirting with its 1,565 record high for weeks.

    The most recent milestones came Thursday when the Dow Jones Industrial Average closed at yet another record, and the Standard & Poor's 500 Index finally closed above its all-time high.

    Thursday closed out Q1 with the Dow adding 52.38 points, or 0.36%, to close at 14,578.54. The S&P tacked on 6.34, or 0.41%, to close at 1,569.19.

    Here's a look at the quarter's biggest gains and losses, as well as what investors should do now as we head into April.

    To continue reading, please click here...

    Read More...
  • With Another Stock Market Record in Reach, Here's What to Do Now

    It's time for some insight.

    I'm constantly asked where I think the stock market is going next. Since the Dow recently reached new highs and the S&P 500 is pushing its old October 2007 highs, it's no wonder that's the question on everyone's mind and lips.

    My answer is: I don't know where it's going.  But I do know what to do about it.

    Here's the thing...

    To continue reading, please click here...

    Read More...
  • How the Stock Market Today Digested Cyprus News Country Cyprus

    Worries over the plan to force bank depositors in Cyprus to help fund a $13 billion international bailout rattled global equities and sent the U.S. stock market today (Monday) lower. 

    Right after the open, the Dow Jones Industrial Average, the Standard & Poor's 500 Index and the Nasdaq were all sharply lower.

    By mid-afternoon, all three indexes remained in negative territory with the Dow down 4.76, or .03% at 14,509.03; the S&P down 2.97, or 0.17%, at 1,557. 73, and the Nasdaq down 2.11, or 0.11%, at 3,247.

    Sending global markets lower Monday was the unprecedented agreement reached this weekend over Cyprus' bailout plan.

    The proposed plan - by representatives of the International Monetary Fund, the European Central Bank and Eurozone's finance ministers - includes taxing deposits over 100,000 euros ($128,950) at 9.9%, while those with less than that amount would be subject to a 6.75% levy.

    The aim is to raise 5.8 billion euros ($7.52 billion) that would go toward the $13 billion international bailout of the country.

    To continue reading, please click here...

    Read More...
  • Why this Ivy League Professor Sees Dow Hitting 18,000 Chart up exponential

    The bears predicting a stock market crash have it all wrong.

    So says Jeremy Siegel, finance professor at the University of Pennsylvania's Wharton School and author of "Stocks for the Long Run." He predicts the Dow - which closed yesterday (Wednesday) at a new record high 14,455.28 - will continue the bull market run, ending this year in the 16,000 to 17,000 range.

    For 2014, he says, the "best bet goal" is the Dow will climb to 18,000.

    And the well-known bull has nearly 150 years of data to back up his bold prediction.

    Here's why Siegel is so bullish.  

    To continue reading, please click here...

    Read More...
  • The FBI and the SEC Are Cracking Down on People Just Like You Police light If you happen to do something that you probably do, and have been doing - only, you didn't know it was "abusive manipulation" of the markets - they're already after you. Read More...
  • Why Recession 2013 Has Already Begun and What to Do About It Chart down small

    Pay no attention to the new market highs or the cheerleading of government officials - recession 2013 is already here.

    That's what Lakshman Achuthan, co-founder and chief operations officer for the Economic Cycle Research Institute (ECRI), is saying now.

    To continue reading, please click here...

    Read More...
  • Dow Hits Record High – What Does That Say About the U.S. Economy?

    Equity market cheerleaders got very excited about the Dow Jones Industrial Average hitting a new record high yesterday (Tuesday).

    The Dow closed at 14,253.77, topping its previous record close of 14,164.53 on Oct. 9, 2007.

    While it is nice to see a sign that equities are improving following the devastating shock of the financial crisis of 2008, today's Dow Jones Industrial Average is not the same index as it was in 2007.

    In fact, if we look back at when the Dow Jones Industrial Average last exceeded 14,000, we'll see that the Dow seems to have less of a connection now to what is really happening in the economy than it did in 2007.

    To continue reading, please click here...

    Read More...
  • Stock Market Today: With Dow at Record High, Will the Climb Last? Chart up exponential

    The Dow Jones Industrial Average was at a record high after nearly six years, as the stock market today (Tuesday) rallied enough to push the index up nearly 70 points at the open.

    Just minutes after the opening bell, the Dow sailed passed its all-time high of 14,165 hit on Oct. 9, 2007. Less than a half-hour into the trading session the Dow roared higher by triple digits propelling benchmark to yet another record.

    By 1 p.m. the Dow was up 146.99, or 1.04%, at 14,274.81. The Standard & Poor's 500 Index added 17.32 or 1.14%, to 1,542.52, leaving it in striking distance if its record close of 1,565 hit in 2007. The Nasdaq climbed 43.39 or 1.37% to 3,225.42.

    Money has poured into stocks over the last several months as individuals have begun to feel more comfortable about the health of the economy - but can it last?

    "The question is, can the Dow maintain these levels? The market is interested in risk-that's why the Dow is higher, why the riskier currencies are higher," Matthew Lifson, currency trader at Cambridge Mercantile Group in Princeton told Reuters.

    To continue reading, please click here...

    Read More...
  • Does the Heinz Deal Mean Warren Buffett Has Become a Doomsday Prepper? At $28 billion, the famed ketchup maker is valued at a rich 23x earnings. And Buffett won't even control management. Given Warren's long and storied history of value investing and a hands-on style, this purchase is bizarre. Unless... Read More...
  • How to Prepare for Recession 2013 kfgonfox_02222013

    Restoration of the payroll tax and higher gas prices have put the squeeze on consumers, prompting nearly half of Americans to cut spending.

    Is the combination of higher taxes and higher gas prices enough to bring on a recession in 2013?

    Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared Friday on FOX Business Network's "Varney & Co." to talk about the potential for an economic slowdown.

    To continue reading, please click here...

    Read More...