Archives for July 2013

July 2013 - Page 16 of 18 - Money Morning - Only the News You Can Profit From

7 Reasons to be Bullish on Gold

What's going on with gold prices?

With the price of the yellow metal near two-year lows through much of 2013, some investors wonder whether the price decline will continue.

Is this a bear market for gold or will it rebound?

A new report from analysts at Incrementum AG in Liechtenstein says there are good reasons to be bullish on gold, which was trading Wednesday at about $1,252 an ounce.

In fact, the report, titled "In Gold We Trust 2013," set a 12-month target for gold prices at $1,480 and a long-range target at $2,230.

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Here’s How to Invest in Africa’s $300 Billion Electricity Boom

President Obama is wrapping up a wide-ranging trip to Africa this week, one in which he talked about everything from human rights, the triumphs of Nelson Mandela, a return to growth in Zimbabwe and the prospects of an African renaissance.

But it was his comments about access to electricity that should have drawn the most attention. The President is setting the stage for a huge leap in Africa's standard of living – and most people probably didn't notice.

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You can Figure out When the Fed Might Start Tapering

Although you might think the markets simply respond any time Ben Bernanke sneezes, his "cold cycle" is not one of the indicators that will spell the slowing

and eventual cessation of the printing press at the Fed.

There actually is a mathematical formula used by the Federal Reserve to determine when to stop the presses.

I could give you the formula and it would look like this:

POP2 = [1-(%POP) m*m] *POP1.

Or, I could share the link to the Federal Reserve's Jobs Calculator in Atlanta.

This is the same calculator used by the Fed to determine when the jobs market and the unemployment rate will align properly. And when they do, it will signal to the Federal Reserve that it might be a good time to start tapering its $85 billion a month bond buying program.

This is what needs to happen: The economy will have to show new job growth.

The Fed is looking for the creation of 150,000 to 200,000 new jobs each month for 6 months. This is how we look now:

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What the Obamacare Employer Mandate Delay Means for Markets and the 2014 Election

The Obama Administration released a shocking decision on Tuesday night to delay the Obamacare employer mandate requiring U.S. companies to provide health insurance to employees who work more than 30 hours a week and are part of a workforce of more than 50.

Mark Mazur, the Assistant Treasury Secretary for Tax Policy, announced on the Treasury Departments blog that the Obama administration "will provide an additional year before the … mandatory employer and insurer reporting requirements begin."

Despite the significant decision by the administration to delay the business mandate, the individual mandate (recently ruled Constitutional as a tax by the Supreme Court), will go into effect as scheduled. Individuals will need to provide proof of insurance in 2014, whether or not there is a business mandate.

The Obamacare mandate is likely a political move in order to delay any negative economic impact of the law on the economy, particularly unemployment, in advance of the 2014 Congressional election that could harm Democrats.

For investors, the financial impact will be just as significant and opportunities robust in the near term. Expect the markets to react accordingly over the next few days.

Significant Political Implications Await Ahead

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A IPO Might Cure the Facebook Syndrome

Facebook's (NASDAQ:FB) IPO dud changed the game for startups trying to raise money in public markets. 

Investors are much more cautious, requiring startups to have seemingly impossible numbers and an established track record of success.

But some startups are moving along quite nicely, despite the "Facebook syndrome."


How Congress and Obama Robbed U.S. Pension Plans with Map-21

We found yet another reason why the U.S. retirement crisis will be uglier than many retirees are prepared for…

You see, while retirees were napping last year, Congress and President Barack Obama were quietly stealing from their pension plans by enacting a little-known law called MAP-21.

Hidden in the wording of a new transportation bill, the act allows big companies to slash their contributions to pension funds.

The upshot?

The number of companies defaulting on their pension plans could balloon and bankrupt the Pension Benefit Guarantee Corp. (PBGC) insurance program – leaving retirees out in the cold.

"That smell of sulfur is what MAP-21 gives off," Jeremy Gold, a pension consultant, told The Fiscal Times. "It's got a smell about it of a deal made with devils."

That's bad news for retirees — or those about to retire – who are counting on a lifetime of payments from a pension plan.

Here's why…

MAP-21: A Wolf in Sheep's Clothing

In 2012, the government faced a shortfall between current gas taxes and projected highway spending.

So how to raise the money?

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The Big Banks On Trial, Again

You want to know why the entire global financial system almost collapsed in 2008?

There seems to be a simple answer. Not encouraging, but simple: The European Commission is exploring the possibility that there was a conspiracy among 13 of the world's major banks that colluded to keep the entire house of cards a secret.

In a press release Monday the European Commission announced it sent a "statement of objections" to Bank of America Merrill Lynch (BAC), Barclays (BARC), Bear Stearns , BNP Paribas (BNP), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), Goldman Sachs (GS), HSBC (HBC), JP Morgan (JPM), Morgan Stanley (MS), Royal Bank of Scotland (RBS), UBS (UBS) as well as the International Swaps and Derivatives Association (ISDA) and data service provider Markit.

This statement of objections is a formal step in EU investigations that charges the banks, the dealers' association, and the swaps pricing agent and index controller of "colluding to prevent exchanges from entering the credit derivatives business between 2006 and 2009."

The companies are then expected to answer the charges.

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Is Egypt Affecting Oil Prices?

With 'black gold on the rise, is it solely Egypt affecting oil prices, or is there another factor at play?

Oil prices hit a nine-month high this week as the "next Arab Spring" erupted in Egypt. Money Morning Global Energy Strategist joined FOX Business to answer: "Why does this have an impact on oil prices? Is it because Egypt's near oil transport regions?"

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How to Profit from the Housing Market Recovery

Housing has rebounded in a big way.

Sales of new, single-family homes surged from April to May at the highest rate since July 2008 and by 29% over the previous year, while existing home sales reached the highest level since November 2009.

And home prices posted their biggest annual increase in more than seven years in May and are expected to continue rising, CoreLogic said Tuesday.

How can you profit from the housing market recovery?

Buying the homebuilders' stocks? Sure, but that's almost too easy, and after impressive gains, homebuilder stocks may have peaked for the short term.

But savvy investors trying to figure out how to profit from the housing market recovery can look beyond the homebuilders to other companies benefiting from the recovery.

Among them: construction materials suppliers, home improvement retailers, paint companies and those manufacturing and selling furniture and appliances.

In fact, furniture and related products led all other manufacturing sectors in the latest Institute for Supply Management report for June.

Here are five companies worth a look if you're seeking to profit from the housing market recovery.

Playing the Housing Market Recovery

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How to Profit From Obama's War on Coal

Since President Obama climate change speech at Georgetown University last week, Republicans and critics have accused Obama of engaging in a "War on Coal."

This isn't the first time that the President's statements on coal-fired power plants have raised questions about his energy policies. He even campaigned on higher electricity costs in 2008 when he suggested that costs would "necessarily sky rocket" to prevent the construction of new coal plants.

Obama has repeatedly argued for more spending on green investments in energy, despite multiple scandals involving campaign bundlers and billions of taxpayer dollars wasted on Department of Energy loans to companies like Fisker Automotive, Solyndra, and Beacon Power.

Now, as the President seems eager to double down on the "green" policies of 2009, which couldn't come close to creating the promised five million green jobs, the President wants to spend more of your money and execute new environmental and alternative energy laws and regulations by fiat.

But despite the stark reality that green technologies still haven't caught up with the free market solutions when it comes to bang for your buck, there's good news for investors looking to cash in on the President's War on Coal.

Just follow the money on the biggest trend in energy policy today.

It's All About Energy Efficiency

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