Archives for November 2013

November 2013 - Page 4 of 10 - Money Morning - Only the News You Can Profit From

Your "Uncle" Is the World's Smartest Trader

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It's interesting that an investor in the "communist" Peoples' Republic of China can make millions tax-free… while investors in the United States – the supposed bastion of free enterprise and capitalism – have to pay, in some cases, a near-50% tax on investment gains.

If trading and investing is all about weighing risk and reward, then the tax code itself makes Uncle Sam the ultimate trader. He gets a nice chunk of your reward, even as he avoids your risk.

Now, I don't mind having Uncle Sam as a silent partner, but like any good partner, he should stick around to help shoulder losses during bad times as well as participate in the good times.

Unfortunately, this isn't what happens...

The JPMorgan Settlement: $7 Billion Is Tax Deductible

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The fact that this week's $13 billion JPMorgan settlement was a record between a U.S. company and the government is not the most notable part of this deal…

What's more shocking about this record-high settlement is that more than half of it could be tax-deductible.

Under terms of the $13 billion deal, JPMorgan Chase & Co. (NYSE: JPM) will pay $4 billion toward consumer relief. The remaining $9 billion goes to settle federal and state civil claims stemming from entities involved in the mortgage securities. The state of New York will receive $613.8 million, California $298.9 million, Illinois $100 million, Delaware $19.7 million, and Massachusetts $34.4 million, according to the Department of Justice.

But now we find out that JPMorgan still has an ace up its sleeve...

Why the 2013 Santa Claus Rally Will Be the Best in Years

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The Dow Jones Industrial Average and S&P 500 typically see their largest gains of the year in December, thanks to a surge coined the "Santa Claus rally."

Since 1929, the S&P 500 has averaged a 1.5% return in December, with markets posting positive returns more than 70% of the time. The only other month with a 1.5% average return is July, with the remaining months' average gains ranging from -1.1% to 1.2%.

December is also tied for the highest average monthly gains for the Dow Jones Industrial Average. From 1910-2010, December has averaged a 1.32% gain, tied with April. Other months' averages range from -0.88% to 1.28%.

But 2013 is shaping up to be the best late-year surge in years…

Why Costco (Nasdaq: COST) Will Keep Beating the Competition

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Who doesn't enjoy a trip to Costco Wholesale Corp. (Nasdaq: COST)? Where else can you get a vat of peanut butter, have your pharmacy prescription filled, buy some fresh produce, and hunt for the latest bargain high-end merchandise – all while snacking on $1.50 hot dog combo?

Costco benefits consumers because it provides certainty that they are getting the best possible bang for your buck.

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Bank 200% Gains from My Recent Dinner Conversation

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From the Editor: The gains potential here isn't quite as dramatic as the 1,000,000% growth story Michael's covering at Strategic Tech Investor. But a 200% potential gain is still very attractive. Here's Michael…

For the past 20 years, I've had regular conversations with one of the nation's top chemistry experts.

His name is Dr. Robert Fisher and he is a retired chemist who was also a researcher at the University of California, Berkeley for nearly 40 years.

The fact that he's also my father-in-law shouldn't dissuade you from hearing about the hellacious profit opportunity he clued me in on over dinner the other night.

It centers around an industry that I myself have been following since the late 1980s when I began writing about the Reagan-era defense buildup.

Gone, of course, from that time is the Soviet Union and the threat of a nuclear holocaust.

But what remains are a whole slew of miracle materials that scientists were experimenting with to help give the U.S. military a secret edge.

Today, these miracle materials touch nearly every aspect of our economy, from smartphones, to electric cars, computers, semiconductors, consumer electronics, and satellite communications.

In fact, they've now become so critical to the global economy, they're ready to unleash a $1 trillion windfall.

Federal Officials Give Bitcoin Market the Nod of Approval It Needed

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Just a few kind words from a handful of federal officials about the positive aspects of the Bitcoin market Monday afternoon were all it took to send the digital currency rocketing from $675 to $900 in a matter of hours.

While Bitcoin prices settled back down into the $600s by Tuesday morning, the significance of the Bitcoin market's reaction should not be dismissed.

What was said at Monday's Congressional hearing before the Senate Homeland Security and Government Affairs Committee marked a turning point in how the U.S. government views Bitcoin.

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What Carl Icahn Really Meant About the Markets

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Carl Icahn wants to be clear about his seemingly bearish stock market comments yesterday.

The famed activist investor was speaking at the Reuters Global Investment Outlook Summit Monday when he made remarks that halted markets' gains.

"I am very cautious on equities today," Icahn said. "This market could easily have a big drop." His reasoning is that earnings at many companies have been juiced more by low borrowing costs than by strong management.

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