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May 20, 2013

mhanna — Mon, 20 May 2013 23:21:08 +0000

Monday, May 20, 2013

By:

Mark Hanna

It was a generally quiet session for U.S. stocks as most of the action centered around precious metals. Traders await Bernanke's testimony on Capitol Hill Wednesday for even the slighest of hints that quanitative easing will be tapered as this appears to be the main driver of the market that just won't quit. The S&P 500 and NASDAQ both fell 0.1%. Yahoo officially announced plans to buy blogging site Tumblr for $1.1 billion. So far this year, there have been 45 U.S. corporate transactions, worth a combined $297.6 billion.

Precious metals were a circus with silver opening in the futures market down some 8% Sunday night, then rallying to open only down 2% this morning before turning positive later in the day. At the close, gold gained 1.4% to $1384.10 and silver 1.0% to $22.58. Crude oil gained 0.7% to $96.71.

British and French shares rose 0.5%, and German shares 0.7%.

The yen edged up 0.7% versus the U.S. dollar Monday after Japan's economy minister suggested further weakness could be harmful to Japan's recovery efforts. Japan gained 1.5% and China 0.75%.

Don't Miss John Browne on Fox Business! • 11:00am

europac admin — Mon, 20 May 2013 21:14:59 +0000

Content Type:

Event

Event Date:

May 21, 2013 - 11:00am

Guest: John Browne
Network: Fox Buisness
Show: Markets Now
Airs: Tuesday, May 21st, from 11:00am to 12:00pm EDT
Note: John is expected at 11:00am EDT

Peter Schiff May 16, 2013 CNBC – Futures Now

europac admin — Mon, 20 May 2013 16:04:20 +0000

Video Type:

TV Interviews

May 16, 2013

Extraordinary Measures Become Standard: US hits Debt Limit Again

europac admin — Mon, 20 May 2013 15:31:00 +0000

Content Type:

Newswire

Source:

The Hill

Link:

http://thehill.com/blogs/on-the-money/budget/300507-as-us-again-hits-debt-ceiling-extraordinary-measures-become-standard

Final Link:

Extraordinary Measures Become Standard: US hits Debt Limit Again
The Hill • May 20, 2013

Taxes on Some Wealthy French Top 100 pct of Income: Paper

europac admin — Mon, 20 May 2013 15:01:33 +0000

Content Type:

Newswire

Source:

Reuters

Link:

http://www.reuters.com/article/2013/05/18/us-france-tax-idUSBRE94H0AX20130518

Final Link:

Taxes on Some Wealthy French Top 100 pct of Income: Paper
Reuters • May 20, 2013

Bernanke’s Testimony Critical to Oil Prices

europac admin — Mon, 20 May 2013 15:00:20 +0000

Content Type:

Newswire

Source:

CNBC

Link:

http://www.cnbc.com/id/100749333

Final Link:

Bernanke’s Testimony Critical to Oil Prices
CNBC • May 20, 2013

Exclusive: Japan Panel Warns of Dangers if Debt Not Addressed

europac admin — Mon, 20 May 2013 14:22:49 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.reuters.com/article/2013/05/20/us-japan-economy-mof-idUSBRE94J0AZ20130520

Final Link:

Exclusive: Japan Panel Warns of Dangers if Debt Not Addressed
Bloomberg • May 20, 2013

Employers Eye Bare-Bones Health Plans Under New Law

europac admin — Mon, 20 May 2013 14:11:57 +0000

Content Type:

Newswire

Source:

Wall Street Journal

Link:

http://finance.yahoo.com/news/employers-eye-bare-bones-health-030600026.html

Final Link:

Employers Eye Bare-Bones Health Plans Under New Law
Wall Street Journal • May 20, 2013

Taiwan Steps Up Its Currency Moves

europac admin — Mon, 20 May 2013 14:10:51 +0000

Content Type:

Newswire

Source:

Barron's

Link:

http://online.barrons.com/article/SB30001424127887324767004578488682893945140.html

Final Link:

Taiwan Steps Up Its Currency Moves
Barron's • May 20, 2013

Student Debt Weighs on Overall Economy

europac admin — Mon, 20 May 2013 13:39:37 +0000

Content Type:

Newswire

Source:

USA Today

Link:

http://www.usatoday.com/story/news/nation/2013/05/19/student-debt-weighs-on-overall-economy/2321133/

Final Link:

Student Debt Weighs on Overall Economy
USA Today • May 20, 2013

May 17, 2013

mhanna — Fri, 17 May 2013 23:30:45 +0000

Friday, May 17, 2013

By:

Mark Hanna

Two days of bad economic daya did nothing to slow down the bull stamepe on Wall Street, so Friday's few decent data points encouraged more buying. The S&P 500 and NASDAQ both gained 1.0% as a late day rally pushed the S&P to new records; in fact the closing print Friday was exactly 1000 points above the low in March 2009 - 1,666. Treasurys declined, pushing the yield on the 10-year note to 1.95%.

Consumer sentiment gained in May to the highest level since July 2007, according to the Thomson Reuters/University of Michigan index.
Leading indicators rose in April, hitting its highest level in nearly five years, according to the Conference Board.

Some data on earnings:

93%of S&P 500 companies have reported quarterly results, with 67% of firms topping earnings expectations and 24% missing forecasts, according to the latest data from Thomson Reuters. If all remaining companies report earnings in line with estimates, earnings will be up 4.8% from last year's first quarter. Meanwhile, sales growth has come in 1% on average.

The dollar continues to rally, pressuring precious metals - gold fell 1.6% to $1364.70 and silver dropped 1.35% to $22.35. Oil gained 0.9% to $96.02.

The FTSE 100 gained 0.5%, Germany's DAX 0.3%, and the French CAC-40 0.6%.

Data from the European Automobile Manufacturers' Association showed the European Union car market for new passenger cars expanded 1.7% in April compared with last year, marking the first monthly improvement since September 2011.

China's Shanghai Composite Index climbed 1.4% while Japan's Nikkei Stock Average rose 0.7%

Tepid Profits, Roaring Stocks

europac admin — Fri, 17 May 2013 14:52:39 +0000

Content Type:

Newswire

Source:

Wall Street Journal

Link:

http://online.wsj.com/article/SB10001424127887323398204578487460105747412.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Final Link:

Tepid Profits, Roaring Stocks
Wall Street Journal • May 17, 2013

Fred Bergsten Warns of Currency Wars

europac admin — Fri, 17 May 2013 14:43:26 +0000

Content Type:

Newswire

Source:

Wall Street Journal

Link:

http://blogs.wsj.com/economics/2013/05/16/bergsten-warns-of-currency-wars-in-peterson-valedictory-speech/

Final Link:

Fred Bergsten Warns of Currency Wars
Wall Street Journal • May 17, 2013

Gold’s Dichotomy: Plunges, but Consumers Keep Buying

europac admin — Fri, 17 May 2013 14:31:06 +0000

Content Type:

Newswire

Source:

Financial Post

Link:

http://business.financialpost.com/2013/05/16/golds-dichotomy-investment-demand-plunges-but-consumers-keep-buying/

Final Link:

Gold’s Dichotomy: Plunges, but Consumers Keep Buying
Financial Post • May 17, 2013

Evidence Mounts on Slower U.S. Economic Growth

europac admin — Fri, 17 May 2013 14:15:33 +0000

Content Type:

Newswire

Source:

Reuters

Link:

http://www.reuters.com/article/2013/05/16/us-usa-economy-prices-idUSBRE94F0J520130516

Final Link:

Evidence Mounts on Slower U.S. Economic Growth
Reuters • May 17, 2013

BOJ May Seek Ways to Calm Bond Yields, Policy on Hold

europac admin — Fri, 17 May 2013 13:54:44 +0000

Content Type:

Newswire

Source:

Reuters

Link:

http://www.reuters.com/article/2013/05/17/us-japan-economy-boj-idUSBRE94G03N20130517

Final Link:

BOJ May Seek Ways to Calm Bond Yields, Policy on Hold
Reuters • May 17, 2013

Fed Hawks Call for Retreat from Mortgage Stimulus

europac admin — Fri, 17 May 2013 13:41:26 +0000

Content Type:

Newswire

Source:

Reuters

Link:

http://www.reuters.com/article/2013/05/16/us-usa-fed-idUSBRE94F0SP20130516?feedType=RSS&feedName=businessNews

Final Link:

Fed Hawks Call for Retreat from Mortgage Stimulus
Reuters • May 17, 2013

Central Banks Saved World Economy, Now Beware the Fallout: IMF

europac admin — Fri, 17 May 2013 13:37:10 +0000

Content Type:

Newswire

Source:

Reuters

Link:

http://www.reuters.com/article/2013/05/16/us-imf-centralbanks-idUSBRE94F19620130516

Final Link:

Central Banks Saved World Economy, Now Beware the Fallout: IMF
Reuters • May 17, 2013

Claims for Jobless Benefits Rise Sharply

europac admin — Fri, 17 May 2013 13:31:00 +0000

Content Type:

Newswire

Source:

USA Today

Link:

http://www.usatoday.com/story/money/business/2013/05/16/jobless-claims-reported/2164455/

Final Link:

Claims for Jobless Benefits Rise Sharply
USA Today • May 17, 2013

May 16, 2013

mhanna — Thu, 16 May 2013 22:57:52 +0000

Thursday, May 16, 2013

By:

Mark Hanna

U.S. stocks retreated a bit Thursday as they generally ignored a second day of poor economic but but sold off only when another Fed official raised the possibility of future "tapering" of quantitative easing. It is that sort of market - economic reality does not matter but any talk of disrupting the Federal Reserve punch bowl does. The S&P 500 fell 0.5% and NASDAQ 0.2%. Economic news was generally very bad today:

Initial claims for jobless benefits rose more than forecast last week, the biggest one-week increase since November.
Construction of new homes in the U.S. sank last month, with overall housing starts falling by 16.5%, against an anticipated decline of 6.4%. The figures were the weakest since November 2012.
The Philadelphia Fed's index of general business activity within its regional factory sector declined to -5.2 in May against expectations for the index to be little changed at 2.0. .
The consumer-price index declined 0.4% from the previous month against views for a fall of 0.3%.

Crude oil gained 0.9% to $95.16, gold fell 0.7% to $1386.90, and silver was fractionally higher at $22.66.

British and French stocks fell 0.1%, while Germany added 0.1%.

The euro zone's trade surplus in March rose to the highest level since the inception of the common currency in 1999.

Japan fell 0.4% as a stronger than expected GDP helped the yen rally, while China gained 1.2%.

Japan announced that its economy grew at an annual rate of 3.5% in the first three months of 2013. The expansion was stronger than the 2.7% increase expected by analysts.

Peter Schiff May 8, 2013 Yahoo Finance – Breakout (2)

jknott — Thu, 16 May 2013 19:18:21 +0000

Video Type:

TV Interviews

May 8, 2013

Peter Schiff May 8, 2013 Yahoo Finance – Breakout

jknott — Thu, 16 May 2013 19:09:57 +0000

Video Type:

TV Interviews

May 8, 2013

Gold Demand in China Surges 20% to Record in First Quarter

europac admin — Thu, 16 May 2013 15:21:55 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-16/gold-demand-in-china-surges-20-to-record-in-first-quarter.html

Final Link:

Gold Demand in China Surges 20% to Record in First Quarter
Bloomberg • May 16, 2013

Physical Gold Demand Shines in First Quarter

europac admin — Thu, 16 May 2013 15:17:44 +0000

Content Type:

Newswire

Source:

Market Watch

Link:

http://www.marketwatch.com/story/physical-gold-demand-shines-in-first-quarter-wgc-2013-05-16

Final Link:

Physical Gold Demand Shines in First Quarter
Market Watch • May 16, 2013

Today’s Ugly Data Raises Questions about Strength of U.S. Economy

europac admin — Thu, 16 May 2013 15:09:00 +0000

Content Type:

Newswire

Source:

Financial Post

Link:

http://business.financialpost.com/2013/05/16/u-s-jobless-claims-spike-to-6-month-high/

Final Link:

Today’s Ugly Data Raises Questions about Strength of U.S. Economy
Financial Post • May 16, 2013

Dollar Eases on Downbeat Data, Retreats from 4-1/2 Year High Versus Yen

europac admin — Thu, 16 May 2013 15:01:28 +0000

Content Type:

Newswire

Source:

Reuters

Link:

http://www.reuters.com/article/2013/05/16/us-markets-forex-idUSBRE93E00320130516

Final Link:

Dollar Eases on Downbeat Data, Retreats from 4-1/2 Year High Versus Yen
Reuters • May 16, 2013

Jobless Claims in U.S. Jump to Highest Level in Six Weeks

europac admin — Thu, 16 May 2013 14:22:33 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-16/jobless-claims-in-u-s-jump-to-highest-level-in-six-weeks.html

Final Link:

Jobless Claims in U.S. Jump to Highest Level in Six Weeks
Bloomberg • May 16, 2013

Housing Starts in U.S. Fell in April to Five-Month Low

europac admin — Thu, 16 May 2013 14:21:32 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-16/housing-starts-in-u-s-decreased-in-april-to-five-month-low.html

Final Link:

Housing Starts in U.S. Fell in April to Five-Month Low
Bloomberg • May 16, 2013

Walmart Suffers as US Consumers Hold Back

europac admin — Thu, 16 May 2013 13:33:08 +0000

Content Type:

Newswire

Source:

Financial Times

Link:

http://www.ft.com/intl/cms/s/0/b60b5622-be1e-11e2-bb35-00144feab7de.html#axzz2TSgHhEPs

Final Link:

Walmart Suffers as US Consumers Hold Back
Financial Times • May 16, 2013

May 15, 2013

mhanna — Thu, 16 May 2013 00:03:33 +0000

Wednesday, May 15, 2013

By:

Mark Hanna

U.S. stocks continue to rally despite any sort of weak economic news. Wednesday the 9th gain in 10 days, and the 13th in 16 sessions. The S&P 500 gained 0.5%, and the NASDAQ 0.3%.

Manufacturing activity in the New York region contracted unexpectedly in April for the first time since January.
U.S. industrial production fell by more than expected in April, reflecting a broad decline in factory output and a weather-related decrease in demand for utilities. Industrial production dropped by 0.5% last month after a revised 0.3% increase in March, the Federal Reserve said. Economists polled by Reuters had expected output to decline 0.2% in April.
Factory production decreased by 0.4%, compared with a forecast for a 0.1% rise. The decline was broad-based, with the production of durable goods down 0.6%, partly due to a 1.3% fall in motor vehicles and parts.
Industry capacity utilization, a measure of how fully firms are deploying their resources, dropped sharply to 77.8 percent from 78.3 percent in March, reducing it to 2.4 percentage points below its long-run average, the Fed said. Economists had expected a reading of 78.
The Labor Department said its seasonally adjusted producer price index fell 0.7% last month, the biggest decline since February 2010. Wholesale prices excluding volatile food and energy costs nudged up 0.1%.

The dollar's rally continued pushing precious metals down; gold dropped 2% to $1396.20 and silver 3.1% to $22.66. Crude oil added 0.1% to $94.30.

British stocks gained 0.1%, German stocks 0.3%, and French stocks 0.4%.

France slipped back into recession after a 0.2% decline in first-quarter GDP. Germany's economy expanded by 0.1% during the same period.

Japan gained 2.3% and China 0.35%.

Private Equity Taps Builders as Foreclosures Vanish

europac admin — Wed, 15 May 2013 22:13:36 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-14/private-equity-taps-builders-as-foreclosures-vanish.html

Final Link:

Private Equity Taps Builders as Foreclosures Vanish
Bloomberg • May 15, 2013

New York Area Manufacturing Unexpectedly Contracts

europac admin — Wed, 15 May 2013 22:12:04 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-15/new-york-area-manufacturing-unexpectedly-contracts.html

Final Link:

New York Area Manufacturing Unexpectedly Contracts
Bloomberg • May 15, 2013

Central Banks Are Repeating Greenspan’s Mistake

europac admin — Wed, 15 May 2013 22:10:01 +0000

Content Type:

Newswire

Source:

CNBC

Link:

http://www.cnbc.com/id/100735821?utm_source=feedly

Final Link:

Central Banks Are Repeating Greenspan’s Mistake
CNBC • May 15, 2013

Production Falls as U.S. Feels Global Weakness: Economy

europac admin — Wed, 15 May 2013 22:09:26 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-15/industrial-production-in-u-s-declines-by-most-in-eight-months.html

Final Link:

Production Falls as U.S. Feels Global Weakness: Economy
Bloomberg • May 15, 2013

Change at Sony: Start of Third Leg of Abenomics?

europac admin — Wed, 15 May 2013 22:07:51 +0000

Content Type:

Newswire

Source:

CNBC

Link:

http://www.cnbc.com/id/100737590

Final Link:

Change at Sony: Start of Third Leg of Abenomics?
CNBC • May 15, 2013

Yen to Weaken to 120 by Next Year: Economist

europac admin — Wed, 15 May 2013 22:07:10 +0000

Content Type:

Newswire

Source:

CNBC

Link:

http://www.cnbc.com/id/100735244

Final Link:

Yen to Weaken to 120 by Next Year: Economist
CNBC • May 15, 2013

German Economy Barely Expands While France Contracts

europac admin — Wed, 15 May 2013 22:05:32 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-15/german-economy-expanded-less-than-forecast-in-1q.html

Final Link:

German Economy Barely Expands While France Contracts
Bloomberg • May 15, 2013

Japan’s Bonds Halt Worst Drop in Decade After BOJ Adds Funding

europac admin — Wed, 15 May 2013 22:04:32 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-15/japan-s-bonds-halt-worst-drop-in-decade-after-boj-adds-funding.html

Final Link:

Japan’s Bonds Halt Worst Drop in Decade After BOJ Adds Funding
Bloomberg • May 15, 2013

May 14, 2013

mhanna — Tue, 14 May 2013 23:52:12 +0000

Tuesday, May 14, 2013

By:

Mark Hanna

Comments by hedge fund manager - who famously said in late 2010 that either the economy will improve or the Fed will drive up stock prices during Quantitative Easing #2, helped push stocks up Tuesday. His appearance on CNBC showed a man who was no less bullish and he even discussed the potential of a "1999 scenario" (i.e. a bubble) if the Federal Reserve does not begin to withdraw stimulus soon. The S&P 500 gained 1.01% and the NASDAQ 0.69%. There was positive news from the CBO:

The Congressional Budget Office cites higher tax revenues and better-than-expected bailout repayments by mortgage giants Fannie Mae and Freddie Mac as the key reasons for the improved outlook. The budget office now predicts a 2013 budget deficit of $642 billion, more than $200 billion below its February estimate. This year's shortfall would register at 4% of the economy, far less than the 10.1% experienced in 2009 when the government ran a record $1.4 trillion deficit. Last year's deficit was $1.1 trillion, capping four consecutive trillion dollar-plus deficits during President Barack Obama's first term.

Crude oil fell 1.0% to $94.21, gold fell 0.7% to $1424.50, and silver 1.3% $23.38 as the bounce in the dollar lately (relative to some economies such as Japan taking even bigger stimulus steps) pressures the commodities space.

British stocks gained 0.8%, German stocks added 0.7%, and French stocks 0.5%.

The German ZEW economic sentiment indicator, a gauge of investor confidence, inched 0.1 point higher to 36.4 in May, but remained well below the result of 40 expected by analysts.
Industrial production in the euro zone climbed 1% in March compared with February. Analysts expected a rise around 0.4%.

Japan fell 0.2% and China 1.1%.

ECB Picks Fight With Germany on EU Plan for Failing Banks

europac admin — Tue, 14 May 2013 14:49:27 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-14/ecb-picks-fight-with-germany-on-rules-for-handling-failing-banks.html

Final Link:

ECB Picks Fight With Germany on EU Plan for Failing Banks
Bloomberg • May 14, 2013

Grind of Euro Crisis Wears Down Support for Union, Poll Finds

europac admin — Tue, 14 May 2013 14:48:35 +0000

Content Type:

Newswire

Source:

New York Times

Link:

http://www.nytimes.com/2013/05/14/business/global/poll-shows-european-union-loses-favor-in-europe.html?ref=business&_r=1&

Final Link:

Grind of Euro Crisis Wears Down Support for Union, Poll Finds
New York Times • May 14, 2013

FDIC Closes Banks in North Carolina, Georgia

europac admin — Tue, 14 May 2013 14:47:22 +0000

Content Type:

Newswire

Source:

Yahoo Finance

Link:

http://finance.yahoo.com/news/fdic-closes-banks-north-carolina-230529541.html

Final Link:

FDIC Closes Banks in North Carolina, Georgia
Yahoo Finance • May 14, 2013

Used Gold Supply Heads for ’08 Low as Sellers Balk: Commodities

europac admin — Tue, 14 May 2013 14:45:42 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-13/used-gold-supply-heads-for-08-low-as-sellers-balk-commodities.html

Final Link:

Used Gold Supply Heads for ’08 Low as Sellers Balk: Commodities
Bloomberg • May 14, 2013

‘We are going to run out of cash’: 'Detroit is Insolvent'

europac admin — Tue, 14 May 2013 14:25:49 +0000

Content Type:

Newswire

Source:

Financial Post

Link:

http://business.financialpost.com/2013/05/13/detroit-fiscal-crisis-2/

Final Link:

‘We are going to run out of cash’: 'Detroit is Insolvent'
Financial Post • May 14, 2013

In Push to Taper QE3, Plosser Warns on Fed Credibility

europac admin — Tue, 14 May 2013 14:07:23 +0000

Content Type:

Newswire

Source:

Reuters

Link:

http://www.reuters.com/article/2013/05/14/usa-fed-plosser-idUSL2N0DV01K20130514

Final Link:

In Push to Taper QE3, Plosser Warns on Fed Credibility
Reuters • May 14, 2013

Japan Bonds Slide 3rd Day as Stock Gains, U.S. Rates Trim Demand

europac admin — Tue, 14 May 2013 13:40:49 +0000

Content Type:

Newswire

Source:

Bloomberg

Link:

http://www.bloomberg.com/news/2013-05-14/japan-bonds-slide-3rd-day-as-stock-gains-u-s-rates-trim-demand.html

Final Link:

Japan Bonds Slide 3rd Day as Stock Gains, U.S. Rates Trim Demand
Bloomberg • May 14, 2013

May 13, 2013

mhanna — Tue, 14 May 2013 00:03:20 +0000

Monday, May 13, 2013

By:

Mark Hanna

U.S. stocks continue to rally under a "Goldilocks" scenario. The economic news is not good enough to take away the Federal Reserve support, but not bad enough to cause extreme worry - hence stocks continue to melt up. The S&P 500 was up fractionally while the NASDAQ gained just under 0.1%. Since mid April there has been a nearly straight up move with no correction. At its closing high last week, the S&P 500 traded at more than 16 times 2012 earnings, the highest P/E ratio in three years. The main economic data point Monday was retail sales:

Retail sales rose 0.1% in April, better than the 0.3% drop that had been expected and returning to growth following a decline in March. Excluding autos, gasoline and building materials, core sales rose 0.5%.
Business inventories for March were flat, compared with expectations for a rise.

Oil fell 0.9% to $95.17, gold dropped 0.2% $1434.30, and silver added 0.2% to $23.70.

British stocks gained 0.1%, German stocks were fractionally higher, while French stocks dropped 0.2%.

Japan gained 1.2% while China dropped 0.2%. .

Industrial production in China recorded a smaller-than-expected rise in April. Output rose 9.3% from a year ago, which was up from March's figure of 8.9% but below market forecasts for a 9.5% rise. Fixed-asset investment also weakened in the first four months of 2013.

Peter Schiff May 12, 2013 - Russia Today

europac admin — Mon, 13 May 2013 18:11:32 +0000

Video Type:

TV Interviews

May 12, 2013

Gold Has Steadied Since It Plunged Last Month; What’s Next?

europac admin — Mon, 13 May 2013 16:14:25 +0000

By:

Matthew Craft

Source:

Associated Press

NEW YORK — When the price of gold plunged $200 last month, many people thought they caught the sound of the gold bubble popping.

What Peter Schiff, the CEO of brokerage Euro Pacific Precious Metals believes he heard was a stampede of fair-weather speculators fleeing the precious metal.

Schiff and other champions of gold weren’t shaken by the plunge. To them it was just a short breather in preparation for another long climb.

All the reasons they give for buying gold haven’t changed: Gold remains a refuge from disaster, they say, arguing that a steep drop in the dollar and a spike in the price of consumer goods are a threat.

For speculators, buying gold was simply a way to profit from its popularity.

“That’s what happens in a bull market,” Schiff says. “The selloffs shake out the Johnny-come-latelies. It’s healthy. Now we can have a real rally.”

Gold, often touted as the most trustworthy of investments, has looked wild over the past month. After starting April above $1,600 an ounce, it dropped below $1,361 on April 15 and has steadily recovered to settle at $1,436 on Friday.

Gold was supposed to be a haven from turmoil. When the housing market started cracking and the stock market sank in 2007, the price of gold began to surge. Over the next two years, it soared from around $600 an ounce to nearly $900 in the depths of the financial crisis in late 2008.

For those who were wary of financial institutions or thought the Federal Reserve’s rescue efforts would backfire, it became the favored investment. The television personality Glenn Beck advised his audience to stock up on gold bars in case the dollar became worthless. The tea party called for a return to linking the value of the dollar to the price of gold.

“People treated gold like the cure for everything,” says James Paulsen, chief investment strategist at Wells Capital Management in Minneapolis. “If you were worried about a depression, buy gold. If you were worried about inflation, buy gold.”

If fear of economic collapse started the gold rally, greed accelerated it. By 2009, speculators and others looked to ride gold’s popularity. Hedge funds and other big investors piled in.

Anxiety and gold prices kept climbing in tandem. Right after Standard & Poor’s stripped the U.S. of its top credit rating in August 2011, the price peaked above $1,900.

Instead of buying gold bricks and stashing them in their basement, many hedge funds and big investors turned to buying gold exchange-traded funds, which trade on markets like stocks. The most popular offering, the SPDR Gold Trust, attracted big investors like John Paulsen, who made billions betting on the mortgage meltdown, and George Soros.

As money poured in, the SPDR Gold Trust grew into the second-largest largest exchange-traded fund behind the SPDR S&P 500, which follows the stock market. And its supply of gold swelled from 780 metric tons at the start of 2009 to 1,353 metric tons in December.

But now it looks like the fast-money has soured on the yellow metal. George Soros slashed his stake in the SPDR Gold Trust fund by 55 percent at the end of last year, according to the most recent regulatory filing.

Huge India Gold Spree Takes Shine Off Slowing Inflation

europac admin — Mon, 13 May 2013 15:59:51 +0000

Content Type:

Newswire

Source:

Yahoo Finance

Link:

http://sg.finance.yahoo.com/news/april-trade-deficit-jumps-huge-073500334.html;_ylt=AlRjYatEUkav11eIYxkQRZGhwsRG;_ylu=X3oDMTNvbGZlZGpwBG1pdANOZXdzIFRvcCBTdG9yeQRwa2cDNjFiZjYzMGMtZTM5Yy0zZmYyLWE4ZGItNmE1NmFiYTgwNDVjBHBvcwM5BHNlYwN0b3Bfc3RvcnkEdmVyAzc5ZWE5N

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Huge India Gold Spree Takes Shine Off Slowing Inflation
Yahoo Finance • May 13, 2013