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…

  • Featured Story

    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...
  • us economic forecast

  • Why There's No Real Inflation (Yet) According to Nobel Prize-winning economist Milton Friedman, "inflation is always and everywhere a monetary phenomenon."
    Well, apparently not...
    There's certainly plenty of cause for inflation today. Every central bank in the Western world is holding interest rates down, and almost all of them are printing money like it's going out of style. And the big deficits governments were running should be making inflationary matters even worse. Taken together, monetary and fiscal policies are far more extreme than they have ever been.
    But today inflation is only running at around 2% - well below where it should be, according to Milton's monetarist theories.
    What does it all mean? Read More...
  • 2013 U.S. Economic Forecast: Even Without the Fiscal Cliff, A Recession Still Looms Everyone is worried about the damage the "fiscal cliff" might do to the U.S. economy in 2013, but the reality is that's only one of the potential problems in our 2013 U.S. Economic Forecast.

    At present there appears to be four problems-- aside from the fiscal cliff-- that could throw the U.S. economy into recession in 2013.

    These are international problems that include:

    • Brewing trouble in Japan: Japan faces an election next month. More importantly, its government debt is currently 230% of GDP, with that ratio rising by about 10% a year. The current government has increased sales tax in 2014, which may cause a recession and will likely push its debt to GDP ratio even higher.

      The problem is no country has ever survived a debt/GDP ratio above about 250% without defaulting. Britain did succeed with this in 1815 and 1945, but on the second occasion it relied on exchange controls, inflation, and dozy domestic investors, while on the first occasion it had a government under Lord Liverpool far more capable than anything we have seen in the last 185 years.

      The point is, if Japan gets a weak coalition after its election, the market may panic and cause a Japanese government default.

    To continue reading, please click here...
    Read More...