We'll have a Q&A session today, covering everything from precious metals to reserve banking to the derivatives markets. Let's start with a very interesting question about gold and silver. Q: Advisors frequently tell us not to be invested in gold/silver exchange traded funds (ETFs) as they could collapse and leave the investor with nothing but […]
Archives for April 2013
April 2013 - Page 18 of 21 - Money Morning - Only the News You Can Profit From
How to Beat Wall Street at Its Own Game - April 2013
I'm a voracious reader. And I'm also a relentless networker.
In this business, I have to be. I need to see and hear as much as possible in order to form the opinions, forge the recommendations and assemble the market intelligence that enables us to help you pull down big profits.
Creating Private Briefing made it even easier for me to do all that for you.
Now I have direct, daily access to six of the most impressive investment gurus you're ever going to find – folks like Keith Fitz-Gerald, a globe-trotting expert and best-selling author with decades of experience in international markets … or Peter Krauth, the natural resources expert who's so serious about his work that he lives in Canada to be close to the companies he covers … or Martin Hutchinson, who has actually been hired by countries to fix their economies.
Let me tell you a quick story that shows why this matters. And after that we'll take a look at some investing strategies we think you need to consider – especially right now, with the market in record territory.
These are strategies that will allow you to keep pursuing profits on your existing holdings, to add new positions at prices that will help you extract the maximum-possible returns, and to protect all of your holdings against a possible correction.
So let's start with my story.
Don't Fall Into This Common Retirement Savings Trap
For quite some time there have been numerous studies out there that have tried to tackle the question of how much a retiree can withdraw from their retirement savings without running out of money.
People in the industry call this the safe withdrawal rate. The rate most commonly talked about and put into practice is the so-called 4% rule.
In the early 1990s, CFP William Bengen produced work that found that 4% was a safe rate of withdrawal to determine if your nest egg was sufficient to last for 30 years.
So to put this in application, if you know that your retirement expenses would be for example $50,000, then you could multiply this number by 25 – which is the inverse of 4%. In this example your total retirement savings should be $1,250,000.
As you may have realized, this rule of thumb will almost always overestimate your needed amount because it doesn't account for income during those 30 years.
But here's a catch. Bengen made the follow assertions with his work:
- Your retirement will last for 30 years,
- Your savings will be held in a tax-deferred account
- There will be nothing left for heirs.
If you change one of these factors, your safe withdrawal rate will change with it. But that's just the tip of the iceberg.
Recently, new research has looked into other variables that affect how much you will need in retirement.
Here's what's becoming the "new school process" in determining what you need to safely retire.
What is Facebook Home - And Will it Do Anything for Facebook Stock?
The much anticipated announcement from Facebook today (Thursday) has left us investors with two questions.
The first, what is Facebook Home?
The second, is this finally the development that CEO Mark Zuckerberg needs to rally investors behind Facebook stock, and lift it back above its IPO price of $38?
The social-networking giant Thursday unveiled Facebook Home, a customized homescreen for Android smartphones. Facebook Home highlights all things Facebook – a dream come true for anyone who loves the social media tool.
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Why Oil Prices Aren't Coming Down Despite Big U.S. Oil Boom
The dual promise of the U.S. shale oil boom was that it would reduce our dependence on foreign oil and lower oil prices that would benefit U.S. consumers via cheaper gasoline.
But while U.S. oil production continues to rise, and gasoline consumption continues to fall, gas prices have remained stubbornly high: The national average was about $3.65 last week.
And that trend is expected to continue, with the United States surging past Saudi Arabia as the world's largest producer of crude oil as soon as 2020. Meanwhile, U.S. gasoline demand is at its lowest in more than a decade – down to 8.7 million barrels a day.
Facts like that have led some pundits to predict falling oil prices. Last year, some politicians were promising that stepped-up U.S. oil production could lower gasoline prices to $2.50 a gallon.
Frustrated U.S. drivers struggling to cope with high gas prices were eager to believe such promises, no matter how unlikely.
Unfortunately, all that new U.S. oil, while helpful in some ways, will not have much effect on gas prices – either now or in the foreseeable future.
"The problem is that prices are not just reflective of new supplies, either too much or too little," explained Money Morning Global Energy Strategist Dr. Kent Moors. "By focusing only on how much is there, these analysts provide a fundamentally distorted view of the oil market."
To continue reading, please click here…
This Gold Prices Chart Points to a Looming 24% Jump
Despite a pullback in gold prices, hold on to your gold. In fact, look to buy more.
You see, thanks to record highs for the U.S. stock market, a notable shift from defensive assets to "risk-on" trades has occurred.
The yellow metal slumped 1.4% to $1,552.80 Wednesday marking a nine-month low. That's after gold prices slid below $1,600 an ounce in Q1 on hints of a global economic rebound. The slide prompted market participants to shed gold holdings.
It's "certainly understandable" for investors to have sold gold following a 400% appreciation over the last decade and move into stocks, said Malcolm Burne, chairman of the Golden Prospect Precious Metals investment trust.
But, here's why the tide may be about to turn.
To continue reading, please click here...
SNN Acquires Brazilian Distributor - Analyst Blog
Orthopedic major, Smith & Nephew plc (SNN) has entered into a definitive agreement to acquire assets of its Brazilian distributor, Pró Cirurgia Especializada (PCE). PCE has been associated with the company for the last 30 years and has distributed its sports medicine, orthopedic reconstruction and trauma offerings in Brazil. Although no financial detail of the […]
CEMIG Impresses with 2012 Results - Analyst Blog
Brazil-based integrated electric utility, Companhia Energetica de Minas Gerais (CIG), also known as CEMIG, reported its financial results for the fourth quarter and full year 2012 on Apr 3, 2013. Net earnings in the quarter were R$2,098 million (US$1,018.4 million), up 195% year over year. In 2012, net earnings were R$4,272 million (US$2,190.8 million), up […]
Bear of the Day: AGL Resources (GAS) - Bear of the Day
AGL Resources (GAS) has produced a negative earnings surprise in each of the last two quarters and is set to report the March quarter in early May. Last year they missed that quarter too, and as a result, the stock is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day. […]
What Maslow and Rand Would Tell Investors Today (And How It Relates To Gold)
I have always been fascinated by what motivates people. What motivates Tiger Woods to pursue the goal of being the world's greatest golfer?
What's the motivation driving Warren Buffett to continue purchasing companies instead of retiring in Tahiti?
Or how about the motivation behind the trucks allegedly packed with euros parked in front of the Central Bank in Nicosia?
What is most puzzling is the motivation driving investors to buy or sell their equity positions when research shows that holding an investment over the long-term is more successful than timing the market.
As Business Insider puts it, there's "proof that [investors] stink at investing." Its headline is catchy, and the chart shows the evidence, as the average investor has significantly underperformed oil, stocks, gold and bonds in the past 20 years. While, on average, investors returned 2 percent, oil, stocks and gold rose about 8 percent.
After inflation, the average Joe or Jill actually lost money.