Archives for June 2013

June 2013 - Page 5 of 16 - Money Morning - Only the News You Can Profit From

How your Grandchildren can Reap Profits with These Nuclear Stocks

Three Mile Island. Chernobyl. Sellafield. Fukushima.

These are just the most famous names from an alarmingly long list of civilian nuclear incidents. Each of these accidents resulted sparked intense public debate on the future of civilian nuclear power.

Is it really safe? What do we do with the waste? It'll be toxic for tens of thousands of years? How bad will the next accident be? What kind of trade-off are we making? These are just some of the questions mooted in the wake of these and other nuclear accidents.

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The Latest Obama Outrage: the Family's $100 Million Vacation

How much do you spend on your summer vacation? American households usually spend about $1,200 per person on summer vacations, according to a recent American Express survey.

Presidents spend more on their vacations than you or I. They have to. Air Force One and security does cost more than loading the Honda and heading to the beach.

Here's how much some recent presidents spent our tax dollars on vacation.

Ronald Reagan spent most of his free time at his California ranch. Taxpayers covered the cost of approximately $8 million for presidential travel during Reagan's first six years in office, according to the Los Angeles Times. That amounts to $1.3 million a year.

For George Bush the cost of flying Air Force One to his Texas ranch was approximately $56,800 per trip, for each of the 180 trips according to Media Matters. President Bush spent Christmas during his two terms at the White House so his staff and secret service could spend the holiday with their family, according to Conservative Byte.

Now Obama plans to blow away all previous presidents' leisure travel costs on our dime with a better than Disney World extravaganza trip to Africa.

However Obama had to cancel the safari because of the need to fill the surrounding jungle with snipers to guard the president from wild animals!

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The Six Questions that Can Make You Rich (Part Six)

What is it that investors don't understand about innovation?

Sometimes they believe that some technologies are just a fad, a temporary trend that will ultimately lead to a lot of hype and a lot of losses. Investors have been burned before on solar companies, alternative wind projects, 3D video, and water desalination. There's a lot of hype and not a lot of return.

But we've found a way to determine whether or not a potential innovation is here to stay, something that will become widely adopted, and best of all, profitable to our readers.

We asked six questions that can make you rich. And by answering "yes" to all six of them, you can increase the probability that your investments will provide long-term security and returns.

The final question is this: Are there significant barriers to entry for competition?

Barriers to entry in the technology space is absolutely vital, as we want to ensure that competitors and new innovators are unable to displace this technology, and effectively establish itself as the most reliable and profitable source of innovation.

And we can look at one company right now that is at the pinnacle of success, and could soon face a lot of problems as it begins to see new competition from its rivals.

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Why Investors Are Wrapped Up in Amazing Spider Silk Technology

Prepare to be amazed in that special way that only remarkable science can amaze you.

Remember the first time you saw liquid nitrogen in person, or watched a butterfly emerge from its cocoon? THAT kind of amazed.

Now let's talk spider silk.

Japan-based startup Spiber Inc. says it has found a way to make and use artificial spider silk.

Why is that a big deal?

To fully understand, you have to be aware of the astonishing qualities of spider silk.

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Finding a Sea of Calm in the Rising Market Mania

The markets have begun to swoon and one of the canaries was two Thai tycoons.

This pair of Thai tycoons, neither of them well-known internationally, has made a total of $27 billion in acquisitions in the past year, more than all Thai companies spent abroad in the preceding three years.

That's the kind of statistic common in today's global deal mania, fueled by the glut of funny money. It raises a dreaded question: what happens when the music stops, and when global leverage stops being so available?

We're about to see….

The Thai billionaires – 74-year-old Dhanin Chearavanont and Charoen Sirivadhanabhakdi, 69 – were both well-established in the Thai business community, but nevertheless their combined $27 billion of acquisitions represented a risky gamble.

One bought a wholesaler on 50 times earnings, while the other bought the flagship Singapore brewer Fraser and Neave for $11 billion, quadrupling his holding company's debt-to-earnings ratio.

The Trouble is Thailand has been here before – and well within living memory. It was an orgy of leveraged and overpriced acquisitions that led to the Thai banking and monetary crisis of 1997 that sparked an Asia-wide crisis and led to the Thai stock market losing nine tenths of its value.

In today's markets, the aggressive Thai acquirers seem likely to be the first victims of any credit squeeze that might occur.

These Obamacare Facts Have Our Readers Rattled - Where Do You Stand?

For many of our readers, learning the real "Obamacare facts" that the president doesn't want us to know has been stressful enough to warrant a doctor visit – one that costs you more than it used to (almost like an Obamacare Catch-22…)

The scary thing is, we still have no idea what the full impact of the new healthcare law will be.

Indeed, back in March 2010, House Speaker Nancy Pelosi famously said we had to pass the bill to find out what's in it.

Three years later, even those in charge of implementing Obamacare don't know exactly what's in the law, and how it will, or won't, work.

What we do know so far: Just months until the bill takes fully kicks-in, scores of Americans believe the controversial healthcare reform is a travesty and destined to fall.

Now What: A Q&A with Keith Fitz-Gerald

As you might imagine, my email overflowed this morning following comments from Fed Chairman Bernanke that he's looking to end QE.

Here's my take on a few of the more common themes…

    1. You've been very clear that this was coming Keith…now what?

Obviously markets are deeply rattled as traders come to terms with the implications. Never mind that the markets tend to overshoot consistently, what's happening is brutal. The major indices are all down more than 1% as I write this early on the 20th.

I see Bernanke's actions as a lot like monetary drunk driving in that he's jerking the wheel back and forth all over the road. The markets understandably are struggling to come to terms with what the real risks now are: a) the economy or b) the Fed.

Looking forward, I think you split Bernanke's commentary into two sections.

The G8 Will Never Get a Handle on Taxes at This Rate

The G8 meetings this week at Lough Erne in Northern Ireland had a theme of "Tax Evasion and Transparency." This theme may have been chosen because "Enchantment under the Stars," or "A Night to Remember" were taken by the local high school prom committee.

And I joke not to lampoon this august body – far from it. It's only that the efforts of a group of people – none of whom put on a necktie – who help shepherd the world's largest economies ought to be focusing on economic growth, such as that which we haven't really experienced in the West for quite some time now.

Instead, the world is given the Lough Erne Declaration, which calls for a "robust" international framework to ensure fair tax collection and rational tax regimes. That the United States should be mentioned in the same breath as "fair tax collection" or "rational tax regime" is ludicrous enough.

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Keith Fitz-Gerald: What Ben Bernanke is Doing to the Markets

Today (Thursday), Money Morning Chief Investment Strategist Keith Fitz-Gerald spoke with Stuart Varney on FOX Business about Ben Bernanke and the deep plunge today from the Fed’s continued easing.

Listen in as Keith discusses Bernanke’s strategy – or lack of one. Hear why Keith refers to Bernanke’s moves as “monetary drunk driving.”

But, no need to worry: Keith divulges his plan for stable investing, regardless of where Bernanke jerks the wheel.

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Why Homebuilder Stocks are Suddenly Plunging

Homebuilder stocks had soared in 2012 in the early stages of the housing recovery, but have since leveled off and had perhaps peaked earlier this year.

Then Thursday, major homebuilder stocks plunged amid fears of rising mortgage rates.

The declines came a day after the Federal Reserve suggested it may reduce the bond buying that has pumped up equity markets for more than a year.

Experts noted that homebuilder stocks are particularly sensitive to rising interest rates.

With rising rates, said Money Morning Chief Investment Strategist Keith Fitz-Gerald, "The homebuilders are going to have to do one of two things: They're either going to have to stop building because there's no demand or they're going have to lower their prices, which is going to hurt their profit margin."

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