ECB

Earn 6% When Others Are Losing Money

Money

We're living in crazy economic times.

The race to debase and stimulate has taken us into uncharted financial waters.

Zero interest rate policies (ZIRP) are being replaced with negative interest rate policies (NIRP).

It's an upside-down banking environment that presents some serious challenges.

But investors who are willing to get just a little creative can profit nicely, even as others lose money that just sits there.

And, even better, the shares are trading at an 8% discount now...

Google's New "Euro Plan" Could Boost Shares by 50%
(or More)

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Google Inc.'s (Nasdaq: GOOG) plan to merge its European operations might look like a defensive pullback, but it's really a potential buying opportunity. In fact, Money Morning's Defense and Tech Specialist Michael Robinson thinks the stock could soar 50% over the next three and a half years.

The search giant said on February 25 that it would merge its two European divisions.

Why the European Central Bank's Massive Economic Experiment Will Fail

Eurozone conflict

Last week, the European Central Bank's turn finally came to announce large scale quantitative easing.

As the continent witnesses a battle between deflation and attempts at inflation, will it finally be enough?

Europe is following in the footsteps of the United States, hoping for similar "successful" results.

Instead, it's likely to fall somewhere between the U.S. and Japan.

From the Land of the Rising Sun there is precedent, but it's a forewarning.

Here's the story...

Desperation in the Eurozone Is a Profit Play for Us

Eurozone conflict

On September 4, the European Central Bank lowered the interest rate on its main refinancing operations by 10 basis points to 0.05%. In addition, the interest rate on its marginal lending facility was reduced by 10 basis points to 0.30% and the interest rate on its deposit facility was reduced by 10 basis points as well to -0.20%.

These rate cuts came as a bit of a surprise to the markets since only three months ago the central bank cut interest rates and was waiting for these cuts to stimulate economic growth.

Unfortunately, growth has slowed rather than jumped since then...

Read More…

TSLA, ECB Dominate Stock Market News Today

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Stock market news today, September 4, 2014: U.S. stock futures were up this morning (Thursday) following a mixed trading session in the stock market Wednesday. Apple Inc. (Nasdaq: AAPL) - which accounts for nearly 9% of the Nasdaq - slumped 4.22% yesterday after a possible breach of its iCloud. As a result, the Nasdaq slipped 0.56% (25.62 points).

Here’s a list of the top stock market news for Thursday…

Stock Market Today Will Move on GDP Numbers and Eurozone QE Talk

Stock Market Today

Stock market today, August 28, 2014: This morning, the U.S. Commerce Department revised second-quarter GDP upward to 4.2% growth, while jobless claims slipped to 298,000 for last week.
Last week, European Central Bank President Mario Draghi affirmed his commitments to Eurozone QE. Despite the optimism, many analysts remain divided on whether the ECB will act as soon as next week or wait until some point in the fall.

Here’s what you should know to make your Wednesday profitable…

Silver Price Today Cushioned by Solid Demand

silver price today

The silver price today moved solidly higher in morning trading following some positive economic data out of China.

July Comex silver traded up $0.392, or 1.26%, at $19.73, after the preliminary HSBC China manufacturing purchasing managers index (PMI) for May came in at 49.7. That was up from 48.1 in April, and was the best reading in five months.

Here’s what’s next for the price of silver…

European Central Bank Does Nothing – But Markets React in Big Way

"Maybe next year..." was basically the message sent today (Thursday) from the European Central Bank (ECB).

The European Central Bank left interest rates unchanged despite slightly lowering its outlook for the ailing Eurozone economy for the remainder of 2013. But, it sees a gradual recovery in 2014.

The ECB forecasts Eurozone GDP will contract by 0.6% this year, down from its March projection of 0.5%. However, it modified its 2014 estimates, predicting a return to growth at a rate of 1.1%.

"Euro-area economic activity should stabilize and recover on the course of the year albeit at a subdued pace," ECB President Mario Draghi said at a news conference.

The region has been stuck in recessionary mode for six consecutive quarters. But Draghi cited improving economic data in May as reasons for not taking immediate action.

"But we stand ready to act, and we will continue to monitor closely all incoming data," Draghi said at a news conference. He added the ECB would remain "accommodative" for as long as necessary.

Draghi also staunchly defended the ECB's actions, saying the bank's outright monetary transactions launched last year were "probably the most successfully monetary policy measure undertaken in recent times."

Draghi said the policy had no negative affect on markets.

"The ECB hasn't done anything to increase volatility in the markets," Draghi said. "If you think the ECB has done anything comparable to other central banks, we wouldn't agree."

After today's ECB briefing, the Stoxx Europe 600 Index fell 0.4% to 294.04, setting it on pace to close at the lowest level since late April. Banks suffered some of the steepest losses.

European bond yields plunged the most in three months, with Portugal taking the worst hit.

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Why the ECB's Plan Can't Save Europe

So, Thursday was a big deal. Did you get that?

Markets rallied around the globe, especially European markets and U.S. markets.

But did you get what really happened?

I know you saw the rally, and I'm sure it lifted your spirits. It lifted mine for about a day - that is, until I lifted up the ECB's skirt to see if their provocative language would leave Europe's knickers in a twist or not.

If you're not the kind of person to look at such intimate things too closely, don't worry. I love all that stuff and am driven to know how all the bits and pieces come together or apart. So, I'll tell you what I saw up there.

Europe's knickers certainly are twisted. So much so that if an ill wind blows, everyone is going to see the naked truth.

Let me show you what I mean...

To continue reading, please click here...

Five Predictions Ahead of the ECB Meeting Today

Investors hope they don't get another disappointment from the European Central Bank (ECB) meeting today (Thursday) like the one the U.S. Federal Reserve delivered yesterday.

After the Fed said that the economy has slowed and unemployment remains elevated, but then took no action, investors turned to ECB President Mario Draghi to rescue the euro.

Yet, many economists think the Eurozone cannot be saved.

The Eurozone debt crisis has reached a point where further bailouts will only highlight their inadequacy to solve the problem. But, the countries involved in the crisis have come to the point where they expect further stimulus and will panic if none is given.

We have already seen riots in Spain where the unemployment rate is a Eurozone high of 24.8%, and it's not the only country facing serious unemployment issues. Behind Spain's depressingly high rate is Greece at 22.6%, Portugal at 15.4%, Ireland at 14.8% and France and Italy both with a 10.2% unemployment rate.

The unemployment rate for the Eurozone reached an all-time high of 11.2% in June. The latest numbers show unemployment increased by 123,000 to a total of 17.8 million. That is 40% higher than the 12.7 million unemployed in the U.S. as of the June jobs report.

The youth unemployment rate in Spain and Greece has topped 50% and this adds even more pressure for ECB president Mario Draghi to back up his emphatic statement that "the ECB is ready to do what it takes to preserve the euro. And believe me, it will be enough."

Unfortunately it will not be enough and if anything it will just make matters worse when Greece eventually exits the euro and it begins to collapse.

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Gold Prices: How to Climb the "Golden Staircase'

When U.K. subscriber John M. wrote in this week, he got right to the point.

Asked John: "What's happening to gold prices? Why are they dropping?"

For an answer, I speed-dialed Real Asset Returns Editor Peter Krauth - our resident expert on mining and precious metals.

Peter is based in Canada, which keeps him close to the natural-resource companies that proliferate north of the border. He gave me a detailed and insightful answer to John M.'s question.

And he recommended three ways to profit - including an ETF he says is perfect for first-time gold investors.

To explain what's happened with the "yellow metal" - and to project where gold prices will go next - Peter invented a pricing theory that he christened the "Golden Staircase."

"The bottom line, Bill, is that the price of gold has simply entered a consolidation phase - much like it has done numerous times since it entered this secular bull market back in 2001," he told me.

Gold futures were at $1,662.40 an ounce yesterday - well off the yellow metal's high. Here's why.

"If you think back, when gold hit its all-time high of $1,900 last August, we were in the midst of wild speculation that the U.S. government wouldn't resolve its debt-ceiling crisis," Peter explained. "A deal in Congress was reached in time, but Standard & Poor's went on to downgrade the nation's credit rating for the first time in history. Since then, there's been considerable apathy towards gold by the general investing public, pushing its price down about 13%. What's more, government-calculated inflation looks benign, taking away from gold's luster."

And here's where it gets interesting.

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