eWallstreeter

Iran hangs 2 for passing information to Israel, U.S.

Sun, 19 May 2013 20:17:19 EDT

Two men were hanged in Iran Sunday for spying for Israel and the U.S., according to the country's Supreme Court.

Japan’s Third Arrow: Weekly International ETF Report

Sun, 19 May 2013 19:50:01 EDT

Japanese Prime Minister Shinzo Abe released the “third arrow of Abenomics” on Friday – to semi-enthusiastic investor response

Gold Market Update

Sun, 19 May 2013 19:21:10 EDT

The Barons of Fiat have done an excellent job of discrediting gold and silver and smashing them back down in recent months. They are doubtless crying with laughter at the thought of the distressed 'Little Guy' with his modest hoard ...

Silver Market Update

Sun, 19 May 2013 19:19:14 EDT

Silver's post plunge relief rally was considerably weaker and more stunted than gold's, and with it now back near to its April plunge lows after the drop last week, the chances are considered high that it will break to new lows soon.

How Long This Stock Trend?

Sun, 19 May 2013 19:13:53 EDT

The stock market has once again extended so far that taxi drivers are once again experts in the stock market ...

Important Update of the US Dollar Index, 3 Currencies and Gold

Sun, 19 May 2013 19:11:37 EDT

With the US Dollar Index taking out the critical level of 83.66 mentioned a few weeks ago, it invalidated the previous Elliott Wave count I had for the pattern since 2008 and required some restructuring. A significant amount of time ...

Stock Market Bubble Grows Bigger

Sun, 19 May 2013 19:10:32 EDT

Another record setting week takes the U.S. stock market farther into bubble territory

Monetary Policy Week: Cuts Continue

Sun, 19 May 2013 19:07:00 EDT

Monetary Policy Week in Review – May 18, 2013: Israel, Turkey, Serbia cut, five hold as BOJ easing reverberates by Peter Nielsen, Central Bank News This week eight central banks took policy decisions with three banks cutting rates (Israel, Serbia and Turkey) and five leaving rates on hold (Indonesia, Iceland, Russia, Latvia and Chile) as the Bank of Japan’s (BOJ) monetary easing continues to impact monetary policy decisions worldwide. This week’s rate reduction by Israel and Turkey brings it to a total of five rate cuts in reaction to the BOJ’s new phase of monetary easing, which has lead to a drop in the value of the yen and raised fears of an accelerated influx of capital into higher-yielding currencies, threatening to create asset bubbles. Prior to this week’s cuts, Australia and Korea had cut rates, specifically mentioning foreign exchange as part of their reasoning, while Turkey has now cut rates twice since the BOJ's announcement on April 4, in both cases pointing to strong capital inflows. Read more »

Adding Insult To Injury, South African Gold Mining Union Demands Up To 60% Wage Hikes

Sun, 19 May 2013 19:06:25 EDT

In case the complete disconnect of paper selling from physical hand-over-fist buying (see this chart to explain all the gold activity in Q1 which can be summarized in two words: paper liquidation) were not enough to send the price of precious metals to zero, then news that quite soon gold mining companies in one of the world's largest producers of gold may be going out of business, leading to a collapse in physical product, should be sufficient to really send precious metals well into negative territory. The only question will be if the GDX gets there first. Reuters reports that South Africa's National Union of Mineworkers said it would seek pay rises of up to 60 percent from gold and coal producers, raising the prospect of fresh strikes as firms battle higher costs and falling prices in an already heated labor climate. We wish the mineworker union godspeed, and the best of luck, as in the current full retard gold supply/demand environment, only a complete halt in South African mining production will accelerate gold's price plunging to sub-extraction costs, as miner after miner mothball operations, only to see even further paper liquidation taking the price to laughably low levels (and why not negative?) yet making purchases of physical product completely impossible as there simply will be none left in the supply channel. More from Reuters: Africa's biggest economy is hoping to avoid the 2012 wildcat strike action at platinum and gold mines that cost billions in lost revenue and production and killed over 50 people. Mineworkers are mobilizing to assert themselves, with the NUM fighting a challenge to its once near monopoly in the shafts from the Association of Mineworkers and Construction Union (AMCU), which has poached tens of thousands of platinum miners from it in a violent struggle for members. NUM said it was seeking an entry-level minimum monthly wage of 7,000 rand ($750) for gold and coal surface workers and 8,000 rand for those underground in a submission to the country's Chamber of Mines, a copy of which was seen by Reuters. Elize Strydom, the industrial relations adviser at the Chamber of Mines, said the minimum wage for surface workers is currently 4,700 rand and for underground miners it is 5,000 rand, so the demands for the latter are a 60 percent increase. NUM also said it wanted 15 percent increases for "all other wage categories," or more experienced and skilled workers. The chamber of mines said in a statement it had received the "proposals" from NUM and urged all parties to compromise in the talks which will begin around the middle of June. "We appeal to all parties to explore every option in trying to reach settlement without resorting to damaging industrial action, and to reach agreements that will strike a balance between what is affordable to the companies and meets the expectations of the employees," the chamber said in a statement. Sliding precious metals prices have raised the pressure on miners as they ready for pay talks. Spot platinum on Friday closed at $1,450 an ounce, down around 35 percent from a record high of $2,240 hit in March 2008, and most South African shafts are losing money at this price. Needless to say, miners can't afford said hikes, and the most likely result will be a repeat of last year's mining violence when many workers were killed, while mine production of platinum and other PMs collapsed. This year it appears the target will be gold. The rivalry between the two unions triggered violence that killed over 50 people last year and tensions are running high. An AMCU organizer was murdered last weekend, prompting a 2-day strike at platinum producer Lonmin. Anglo American Platinum (AMSJ.J), the world's top producer, now plans to cut 6,000 jobs from an initial target of 14,000 as it seeks to restore profits after falling into a loss last year. It is hardly in a position to give big pay rises after scaling back its original plan under government pressure. Gold and coal producers negotiate through the country's chamber of mines. South African gold companies include AngloGold Ashanti (ANGJ.J), Africa's top bullion producer, Gold Fields (GFIJ.J), Harmony (HARJ.J) and Sibanye (SGLJ.J). Coal producers include Anglo American (AAL.L) and Exxaro (EXXJ.J). At last check, gold was once more sliding as the silver margin liquidation has woken up correlation algos taking down the entire PM complex lower. Which only mea......

Warren Buffett's "Two-Column Valuation Method"

Sun, 19 May 2013 18:54:23 EDT

By seb1215. Read more » »Check out Warren Buffett Stock Picks » Download GuruFolio Report of Warren Buffett (Updated on 05/18/2013), Check out Sam Walton Stock Picks » Download GuruFolio Report of Sam Walton (Updated on 05/18/2013), Check out Scott Thompson Stock Picks » Download GuruFolio Report of Scott Thompson (Updated on 05/18/2013), Check out John B Stock Picks » Download GuruFolio Report of John B (Updated on 05/18/2013)Related Stocks: BRK.A, BRK.B,

Silver Plunges As Yen Stop Surge Triggers Margin Liquidation

Sun, 19 May 2013 18:18:19 EDT

Not a moment after someone was slammed with a massive margin call following the hit of 102 USDJPY stops as we noted moments ago, was that same someone(s) forced to dump a whole lot of silver in thin, no volume trading taking out the entire bid stack on what can only be described as "get me the hell out and pay me anything" liquidation, sending the precious metal to just over $20, before yet another round of buying programs kicked in, and sent it right back up, allowing those quick enough to capitalize on some foolish macro trader's blowing up to pocket a huge profit before Japan has even woken up. Thank you Kuroda, Bernanke and co for this total farce of a "market." ...

Yen Surges In Early Trading, Takes Out USDJPY 102 Stops

Sun, 19 May 2013 18:11:46 EDT

"Easy come, easy go, when the market is GETCO" That should be the motto of every momentum trader who decided on Friday to buy the USDJPY just because it was 2pm, and then, when 3:30 pm came around, and the momentum chasing algos woke up, then pat themselves on the back for a "job well done." Because in early trading, before even the Japan open, the USDJPY, following on comments by Japan's econ minister Amari, as noted here earlier, that the days of easy JPY devaluation are over, collapsed by over 120 pips from a closing print of 103.20, and tumbled in a span of second to just under 102, taking out all 102 stops, before the GETCO plunge protection algo team took over and sent the pair back up, however briefly. Of course, Japan has yet to wake up and realize read the comments from Amari. At that point should the Mrs Watanabe retreat bugle sound, all bets are off, and just as the momentum was so instrumental in sending the USDJPY over 103, so it may push the pair in double digit territory in almost no time. ...

Japan: Exporting Deflation

Sun, 19 May 2013 17:19:52 EDT

by John Mauldin, Thoughts from the Frontline The evils of this deluge of paper money are not to be removed until our citizens are generally and radically instructed in their cause and consequences, and silence by their authority the interested clamors and sophistry of speculating, shaving, and banking institutions. Till then we must be content to return, quo ad hoc, to the savage state, to recur to barter in the exchange of our property, for want of a stable, common measure of value, that now in use being less fixed than the beads and wampum of the Indian, and to deliver up our citizens, their property and their labor, passive victims to the swindling tricks of bankers and mountebankers. ≈ Thomas Jefferson, in a letter to John Adams, 21 March 1819 Read more »...

Gold, Silver, Massive Leverage & Super Wealthy Panicking

Sun, 19 May 2013 17:19:30 EDT

On the heels of continued volatility in gold and silver, today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News. Fitzwilson, who is founder of The Portola Group, discusses gold, silver, massive leverage and the race by the super wealthy to get out of fiat currencies.

Prometheus: Gold Market Long-term Correction Continues

Sun, 19 May 2013 16:56:11 EDT

In September 2011, our cycle analysis predicted the formation of a long-term top in the gold market. Following the development of a consolidation formation from late 2011 until early 2013, prices moved below congestion support in the 1,550 area. As expected, the breakdown was followed by a severe decline of 12 percent during the last [...]

Are Oil ETFs Still On The Move?: Weekly Energy ETF Report

Sun, 19 May 2013 16:49:13 EDT

Oil ETF prices have steadily risen in the past few weeks, but will they keep moving up

Guest Post: What Is Normal?

Sun, 19 May 2013 15:53:10 EDT

Submitted by Ramsey Su via Acting-Man blog, Is a $400,000 house with NINJA loan normal? How about a $200,000 REO with missing appliances, a dead yard, a long list of maintenance and no financing? Maybe normal is a $300,000 flip after the flipper fixed everything and colored up the yard, and did some upgrades to the interior. Some may suggest that normal is more like a $300,000 sale with a 5.5% fixed rate and 20% down. Then again, it may be more normal if this $300,000 sale is financed with a 3.5% down FHA loan at 4%. Of course, all of the above is actually referring to the same house. So what is normal? Analysts and economists have long accepted household formation, population and job creation as the basis for housing supply and demand. There was a study (I can't seem to locate) that showed that there is no correlation whatsoever. I am going to borrow a chart from my cyber friend Calculated Risk as an illustration: Housing starts, total and one unit structures – click to enlarge. I think I am going to leave it to the Wharton grads to explain how population and employment fit into the above erratic housing starts chart. In fact, if you use employment as a factor, then we should be tearing down a few million houses since we have lost about 6-7 million jobs since the great recession. If population is a factor, then I suggest you invest in Cairo where the population is definitely growing much faster than that of Silicon Valley. Is it normal that Wall Street is buying up all these houses? Wall Street OPM ('other people's money') is not only buying up all existing homes, now it is squeezing out the buyers for new homes as well. The numbers work exactly the same way for new and existing homes. The builders would far prefer a no-contingency cash offer with no commissions, no lender fees and no marginal buyers that they have to coach into qualifying. In other words, builders can take a lower offer from Wall Street and still be as profitable as when they are selling to mom and pop. Is this good housing policy? Of course not. Where are the policy makers? Just like Greenspan during the sub-prime era, Bernanke is like a deer frozen in the headlights. He is busy with his QEs and claiming there is a housing recovery, while he should actually be busy writing his memoirs entitled: "I did not see it coming." So what is normal? Logically, the past is only relevant if conditions in the future are expected to be similar. We know that with aging baby boomers, housing demand will be substantially different than when the same boomers were at the peak of their productive years. Should the demand rather be for duplex type constructions or grannie flats, as the boomers try to juggle taking care of elderly parents and boomerang kids? Current economic conditions should also present a different outlook. For example, with youth unemployment so high, with student loans in the trillions, there is no reason why first time home purchases should not be delayed. It seems to me the worst thing policy makers can do is to give this group even more credit, especially long term credit like a 30 year mortgage that will entrap them forever. However, I believe the new normal is going to be intervention. Here is a recent speech by Fed Governor Elizabeth Duke, entitled "A View from the Federal Reserve Board: The Mortgage Market and Housing Conditions" This speech is significant because Duke usually labels herself as the Federal Reserve's main voice on housing. Since joining the Board in 2008 amid a crisis centered on mortgage lending, I have focused much of my attention on housing and mortgage markets, issues surrounding foreclosures, and neighborhood stabilization. For those who follow the housing market, I believe this speech is a must read. It provides insight into the data that the Fed is looking at and the Fed's understanding, or misunderstanding, of the real estate market. They seem to be overly concerned about lending to borrowers with low credit scores (emphasis mine): “The drop in originations has been most pronounced among borrowers with lower credit scores. For example, between 2007 and 2012, originations of prime purchase mortgages fell about 30 percent for borrowers with credit scores greater than 780, compared with a drop of about 90 percent for borrowers with credit scores between 620 and 680 (figure 6).5 Originations are virtually nonexistent fo......

What We Read Today 19 May 2013

Sun, 19 May 2013 15:40:48 EDT

Econintersect: Click Read more >> below graphic to see today's list. The top of today's reading list has two articles that might indicate a market top from two authors who are postulating just the opposite ........ and the last article says the House of Representatives may have just passed an act that will effectively eliminate the debt ceiling. But then the author posted another article the next day which says what Congress has done is ambiguous. Read more »

VIX ETFs Close Lower: Weekly VIX ETF Report

Sun, 19 May 2013 15:37:07 EDT

The VIX Index and VIX ETFs continue to decrease as investors' confidence increase: are we looking at even higher stock market prices ahead?d

Japan Economy Minister: "Yen's Excessive Strength Has Been Largely Corrected; Further Weakness Could Be Harmful"

Sun, 19 May 2013 15:32:50 EDT

As if sniffing at the threat the ongoing collapse in JGBs, culminated by Toyota pulling a bond issue on soaring yields, which forced even JPM to come out with an ominously titled piece called the "VaR Shock" driven by the epic plunge in the Yen, Japan's economy minister Akira Amari has hit the wires saying "the yen's excessive strength has been largely "corrected," and further weakness could be harmful, Japan's economy minister said Sunday, suggesting the Japanese government may be happy with the currency's current level. Economy minister Akira Amari, responding to a question on how far the yen should weaken, replied that while he couldn't comment himself, "it's being said that the correction of the strong yen is largely completed. If the yen keeps on weakening a lot more, it will have a negative impact on peoples' lives."" Now the question is will those millions in Mrs. Watanabe housewives suddenly stuck in margin calls scramble to take profit, which could send the USDJPY soundly back into double digit territory, or will the momentum machine, facilitated by Getco's relentless scramble to perpetuate momentum ignition and drift, mean Japan has officially lost control of the Yen, and in a world in which only the BOJ's actions matters, will USDJPY 120 be next, together with the even greater "negative impact on people's lives" such a move would have (but not for those buying apartments at the yet to be built 432 Park). From Nikkei: Mr. Amari was speaking on a Sunday television talk show on national broadcaster NHK. His comments come after the dollar appreciated past Y103 for the first time in four years Friday, marking a 3% gain in the past week alone, and a 30% rise since mid-November, when Prime Minister Shinzo Abe started his successful campaign for office on a pro-growth, weak-yen platform. Mr. Abe and his ministers had argued that the yen had been too strong versus currencies like the dollar and euro since the global financial crisis sent the currency soaring in 2008, pummeling Japan's big exporters, which found their Japan-made goods suddenly much costlier in the world's markets. "Correcting" that problem -- as Mr. Abe and his cohorts put it -- was an important goal of the government's economic growth policies, which called for aggressive monetary easing, fiscal spending and deregulation. But the last several months' depreciation has left the yen near pre-crisis levels, and Mr. Amari's remarks suggest that the government may now be switching its concerns to what would happen if the yen continues to weaken. Although a weak yen boosts profits at exporters, it also raises the cost of imports -- most notably fuel, which Japan has been buying in increased amounts since Japan's 2011 nuclear accident effectively halted operation of most of the country's nuclear power plants. If a weakening yen does have a negative impact on living costs, "it's our job to figure out how to minimize that," Mr. Amari also said. As examples, Mr. Amari touched on the possibility of importing shale gas from the U.S. and restarting nuclear reactors. Mr. Amari also sounded a cautious note on Japan's surging stock market, which has jumped 45% so this year, largely on the weakening yen and hopes that depreciation will boost the fortunes of big Japanese manufacturers. Last week the benchmark Nikkei 225 Stock Average breached 15,000 for the first time in over five years. The stock rise "has been a bit faster than we'd expected," said Mr. Amari. You mean a central planner could not correctly anticipate what would happen when the latest and greatest Pandora's box of asset bubbles is opened? Surely that's would be a first: as long as the "USDJPY is contained" all is well. Perhaps Kuroda also just needs 15 minutes of jawboning to put the inflation genie back into the bottle. Good luck with that. And good luck turning the epic momentum juggernaut around: you will need it. Unless of course the even more epic short covering the may be unleashed takes the USDJPY lower by some 20-30 big figures, and Abenomics quickly ends where it started: with yet another Prime Minister resignation, and the central-planning emperor is found to have been naked all over again. ...

ETF Model Portfolio Update

Sun, 19 May 2013 15:32:09 EDT

We had sell signals that took us out of $KOL, $DGP, $NUGT We had new buy signals on $EWY, $EGPT and $DZZ which we closed out for a profit of +7.51%. Currently we have 5 open positions (highlighted in yellow) $RSX, $VNM, $URA, $EGPT, $EWY. $URA did a 1 for 3 reverse split that is not reflected on the spreadsheet.…

Five Reasons Why We Should Eliminate School Loans

Sun, 19 May 2013 15:24:59 EDT

by Rodger Malcolm Mitchell, www.nofica.com Elizabeth Warren may be the best senator in Congress — or at least the most honest. Expect to see her attacked from both sides of the aisle. She continues to castigate the Obama adminsitration (and she’s a Democrat!) for not punishing the crooked banks (all the big banks are crooked) for criminally defrauding millions of Americans out of trillions of dollars, while continuing to stuff their own pockets. Naturally, Obama avoids this subject (as do the Republicans) like it were poop in the punch bowl. For politicians, the banks are too big (i.e. too big as contributors) to jail. Read more »

Obama aide chides Republicans for ‘fishing’ on IRS

Sun, 19 May 2013 15:16:08 EDT

White House senior adviser Dan Pfeiffer says the Obama administration won’t cooperate in “partisan fishing expeditions” over targeting of tea-party groups by tax officials.

Edward Thorp: A Mathematical Odyssey From Las Vegas to Wall Street

Sun, 19 May 2013 15:15:44 EDT

Edward Thorp speech A Mathematical Odyssey From Las Vegas to Wall Street UCI Talk May 3, 2012 Edward Thorp speech and presentation below: I would like to thank the UCI mathematics department for inviting me and to Professor Sarah Eichhorn for making all the arrangements. It’s a pleasure to see so many students and faculty from UCI and from Sage Hill School, including three of my grandchildren. Today I’ll tell you how I used mathematics in roulette, casino blackjack and the stock market. V1 For each, I’ll talk about the idea, the math behind the idea, the implementation, and what happened afterwards. So that you don’t have to take any notes, I have posted an outline and the images for this talk on my website. It all started with roulette, back in 1947 when I was a 15 year old high school junior interested in anything to do with science and math. While studying physics on my own I thought about predicting the motion of an orbiting roulette ball. V2 Here’s a picture of a casino roulette wheel. Describe a play of the game: Rotor spins, bettors place chips, ball is launched, spins, slows, croupier [...]The post Edward Thorp: A Mathematical Odyssey From Las Vegas to Wall Street appeared first on ValueWalk.

Evidence of Bubble in Stock Prices when Compared with Industrial Production

Sun, 19 May 2013 15:11:22 EDT

by Lee Adler, Wall Street Examiner Industrial Production fell by 0.5 percent in April on a seasonally adjusted basis after having increased 0.3 percent in March and 0.9 percent in February, according to the Fed. The consensus estimate was for a decrease of 0.2%. Economists had been missing to the optimistic side on most forecasts for the past several months. This month they course corrected and now their estimates are too low. The media only pays attention to this silliness because it has nothing better to do. I’m more interested in how the the trend of actual, not seasonally manipulated, economic data lines up with the performance of the stock market, since there is some historical correlation. Read more »

Sizing Up CEO Pay

Sun, 19 May 2013 15:00:57 EDT

Click for ginormous graphic Source: WSJ

12-Year Base Cleared By S&P 500

Sun, 19 May 2013 14:55:29 EDT

This week’s video covers numerous charts that support a bullish intermediate-term outlook for stocks. After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.

Anadarko Petroleum Trades As Low As One Penny On Friday

Sun, 19 May 2013 14:51:00 EDT

In the final second of trading on Friday, Anadarko Petroleum Corp. (APC) goes from a $90 stock and trades down to $.01, that is a penny a share before closing at $90.03. I am sure some buyers (computers) thought they were fortunate to pick up APC at one penny. On the contrary, the NYSE canceled trades executed below $87.56 per share.From The Blog of HORAN Capital AdvisorsFrom The Blog of HORAN Capital AdvisorsThis type of trading activity certainly weighs on investor confidence in the markets and is an issue that most certainly needs to be addressed.

The New New York Housing Bubble: Park Avenue "Maids Quarters" Studio For $3.9 Million

Sun, 19 May 2013 14:40:28 EDT

To those who have already submitted their applications to launder their cash buy an apartment or better yet, have already wired the money to purchase any of the still to be built residences at 432 Park, the 84-story giant that is set to become the tallest residential building in the Western hemisphere, congratulations. Although that is technically inappropriate: for full effect we would have to say "congratulations" in the buyers' native tongue, be it Russian, Mandarin, Spanish or Arabic, because it sure won't be English in the ongoing scramble to park trillions in cash away from a global banking system now hell bent on confiscating it, especially away from Europe's insolvent and massively levered banks as shown yesterday, and in the Cyprus template aftermath, the cleanest dirty shirt has once again emerged as midtown Manhattan real estate just as we said would happen last September. However, to call the emerging, full-blown panic scramble to park cash sight unseen, with zero regard for asking price "a bubble", would a slap in the face of all calm, cool and collected bubbles everywhere. Because any time someone is willing to pay $95 million for a non-duplex one-floor apartment, $44.8 million for a 4-bedroom apartment, $10 million for a two-bedroom, or a paltry $3.9 million for a maid's quarters studio (no really), something far more profound is going on beneath the surface than a simple asset bubble. The NYT explains: Only 10 floors have been completed in what is intended to be the tallest residential building in the Western Hemisphere — a slender, 84-story tower on Park Avenue at 56th Street in Manhattan. But the top penthouse is already under contract for $95 million. Other buyers have snapped up apartments on lower floors for prices that are almost as breathtaking. While their identities are not known, it is likely that many are the rootless superrich: Russian metals barons, Latin American tycoons, Arab sheiks and Asian billionaires. Ultraluxury housing and construction is booming across Manhattan, which is now beginning to rival London in popularity with the world’s wealthy. The number of condominium buildings in the borough with apartments selling for more than $15 million has risen to 49, up from 33 in 2009, according to CityRealty. In a sence, New York has joined the rest of the world's "wealth parking" capitals, where the only two profitable construction projects are those targeting the uber-wealthy or the mega poor. Middle class: sorry, you are out of luck “There are only two markets, ultraluxury and subsidized housing,” said Rafael Viñoly, the architect who designed the tower on Park Avenue at 56th Street, which is called 432 Park. The rush to build these towers underscores the gap between rich and poor in New York City, said James Parrott, chief economist for the Fiscal Policy Institute, a liberal research organization supported by unions. He said that median family income in the city had fallen 8 percent since 2008. “Manhattan’s superluxury condo boom, along with rocketing foreclosures in Queens and record homelessness, present an unobstructed view of accelerating polarization in this recovery,” Mr. Parrott said Recovery? Tell that to those countless middle-class New Yorkers (whose annual income as marginal as it may be in the City is what the rest of America can only dream of) for whom stagnant wages will mean an ever greater portion of income has to go to paying rent with little left for boosting the velocity of money. Of course, for those close to the banking system's proximity to ZIRP, and the trillions in free reserve-based money (all of which is going into the stock market if not the economy) the current bubble is unlike anything seen before: Izak Senbahar, the developer of 56 Leonard, a 60-story tower in TriBeCa where penthouses are going for more than $20 million, signed contracts with buyers for 70 percent of the 140 apartments in just 10 weeks. “We were all surprised,” Mr. Senbahar said. “This was not what we expected. There’s a pent-up demand for condos with helicopter views.” A decade or two ago, luxury buildings were largely confined to Park and Fifth Avenues. Today, they are rising all over Manhattan — from One57 and the Baccarat in Midtown Manhattan to 825 First Avenue on the East Side, 150 Charles Street in Greenwich Village and 30 Park Place downtown. “It’s not that location is ......

Get Our Newsletter Milestone and Sign-Up

Sun, 19 May 2013 14:03:53 EDT

We just started our email list/newsletter a few months ago and today hit our 2,000th subscriber. The email newsletter is awesome but we are currently working on making it even better. Thanks all the readers who sent suggestions and everyone is welcome feel free to send us more info (@) valuewalk.com. So sign up to get select stories once a day or week straight to your inbox. Get Our Newsletter 'Get ValueWalk's Daily Edition By Email and Never Miss Our Top Stories'The post Get Our Newsletter Milestone and Sign-Up appeared first on ValueWalk.

Beat the Market and the Dealer; Swindles; Is the Fed Printing Money?

Sun, 19 May 2013 13:29:06 EDT

Above is the great Ed Thorp’s Princeton Partners performance graph. Learn more BEAT the Dealer AND the Market. Black Swan Protection (Over my head but perhaps not over yours) My Encounters With Madoff’s Scheme and Other Swindles Uncovering Madoff Fraud by Thorp … Continue reading →

Jeff Gundlach: "We Are Drowning In Central Banking"

Sun, 19 May 2013 13:15:14 EDT

Last week, Bill Gross did not mince his words when he said that he now "sees bubbles everywhere" and that "when that stops there will be repercussions" but for now Benny and the Inkjets, not to mention his band of merry statist men, who take from the poor and give to the wealthy, are playing the music on Max, and so one must dance and dance and dance. And after one legacy bond king, it was the turn of that other, ascendant one - Jeff Gundlach - to share his perspectives Bernanke's amazing bubble machine. His response, to nobody's surprise: "there is a bubble in central banking. We are drowning in central banking and quantitative easing.... And it's not ending until there are some negative consequences." What are those negative consequences? This too should be perfectly expected for regular readers: currency devaluation leads to trade wars (as either is a zero sum game, and in a zero sum game it is very easy to blame someone else for one nation's suffering and economic malaise), trade wars lead to real wars (see the 1930s), and so on. We are not there just yet: quote Gundlach "With global growth slowing not everyone can increase their imports [indeed: observe just how it was that Spain managed to post its first "trade surplus" since 1971 - hint: not by boosting exports] you're playing a market share game." But it is rapidly approaching: "We are looking at competitive currency devaluations, which causes rancor, causes unhappiness, and fingerpointing and god-forbid tariffs and things that cause even slower economic growth a la the 1930s." Good choice of words, considering it was just a week ago that none other than stagnating metals magnate Lakshmi Mittal, head of ArcelorMittal, who was urging Europe to just go ahead already and declare trade on China asap. For his own selfish reasons of course. ...

Rare Pattern On Nasdaq Appears

Sun, 19 May 2013 13:01:36 EDT

By Harlan Pyan The following is an excerpt from the weekend premium market report by All About Trends. Enjoy a free 15 day trial to their service to get daily stock picks, market analysis, and a complete trading plan. “While we all know the indexes are severely overbought in all time frames and frequencies the [...]

MannKind Corporation (MNKD): Why Have Shares Moved?

Sun, 19 May 2013 12:58:23 EDT

MannKind Corporation (NASDAQ:MNKD) took one giant leap over the past few days. Shares have soared more than 30% since last week, after the company reported results for the first quarter. Was the news that great? Not really. It wasn’t that there was bad news. Actually, nothing announced by MannKind Corporation (NASDAQ:MNKD) last week came as [...]

Apple Inc. (AAPL), Microsoft Corporation (MSFT): Who’s Who?

Sun, 19 May 2013 12:56:30 EDT

At this point, Apple Inc. (NASDAQ:AAPL)’s stock story is well-known to many investors. After becoming the world’s most valuable company and breaking through $700 per share, Apple reached legendary status and sell-side analysts climbed over each other in a strange game of who-could-produce-the-highest-price-target. Fast forward to today, and the situation seems completely reversed. Nobody seems [...]

Will This Crush Medtronic, Inc. (MDT)’s Earnings?

Sun, 19 May 2013 12:53:56 EDT

On Tuesday, Medtronic, Inc. (NYSE:MDT) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed kneejerk [...]

Universal Display Corporation (PANL), LG Display Co Ltd. (ADR) (LPL): Is The World Finally Ready for the Next Big Thing in TVs?

Sun, 19 May 2013 12:51:22 EDT

As a longtime shareholder of OLED technologist Universal Display Corporation (NASDAQ:PANL), I’m sure I’m not alone in saying it has felt like an eternity since the first 55-inch OLED televisions were unveiled by Samsung and LG Display Co Ltd. (ADR) (NYSE:LPL) at the 2012 Consumer Electronics Show in Vegas. Of course, both companies had already told the [...]

Apple Inc. (AAPL) & Research In Motion Ltd (BBRY): Where Do They Stand?

Sun, 19 May 2013 12:49:57 EDT

Following the launch of the iPhone in 2007, Apple Inc. (NASDAQ:AAPL) quickly grew to be the dominant player in the high-end smartphone industry. In doing so, it decimated the market share of Research In Motion Ltd (NASDAQ:BBRY) (then called Research In Motion), sending the company into a tailspin. Up until 2012, Apple Inc. (NASDAQ:AAPL) seemed to be [...]

Apple Inc. (AAPL), Google Inc (GOOG): Who Has The Pressure Now?

Sun, 19 May 2013 12:48:33 EDT

Google Inc (NASDAQ:GOOG) unveiled a slate of new upgrades on Wednesday at its I/O conference. Chief among them is a music subscription service to rival Spotify, Pandora Media Inc (NYSE:P), and a potential product from Apple Inc. (NASDAQ:AAPL). It’s calling it Google Inc (NASDAQ:GOOG) Play Music All Access – a name almost as catchy as [...]

Tumblr Would Be One of Yahoo's Most Expensive Aquisitions Ever But It's Nowhere Near The Top

Sun, 19 May 2013 12:47:59 EDT

Huge business news today as it's confirmed that Yahoo will be buying Tumblr in a $1.1 billion all-cash transaction. Making aquisitions has been key to Yahoo's strategy forever, under a whole range of executives, but this is an unusually rich purchase. In inflation-adjusted terms, however, it doesn't come close to matching the big pickups of the dotcom era. These are the top-ten richest acquisitions the company has ever made: Broacast.com $7.6 billion, 1999 Geocities $4.9 billion, 1999. Overture Services $2.06 billion, 2003. Tumblr $1.1 billion, 2013. Right Media $750 million, 2007. Kelkoo $696 million, 2004. eGroups $568 million, 2000. Hotjobs $554 million, 2002. Zimbra $386 million, 2007 Blue Lithium $333 million, 2007. Looking back at this list, the criticism that jumps out isn't anything in particular about the companies Yahoo has chosen to buy. It's more that they seem to have a relatively poor sense of timing. The majority of these have the look of "buy high" to them, coming in the middle of economy-wise M&A wave when what you'd want to see a cash-rich company do is go bargain hunting during downturns. I'd have to think harder about whether buying Tumblr makes any real sense, but I will say that overall market conditions are much more favorable to buying just about anything in 2013 than they were in 1999. The creditworthy can get money very cheaply these days, so spending a lot of money on buying something makes sense.

Apple Inc. (AAPL): Can This Man Equal Steve Jobs’ Genius?

Sun, 19 May 2013 12:46:43 EDT

When Steve Jobs died on Oct. 5, 2011, many investors were afraid the company’s best days were now in the past. The legacy leader, many argued, is simply irreplaceable. With Apple Inc. (NASDAQ:AAPL)‘s stock severely lagging the S&P 500′s 47% surge since Jobs’ death, investors are desperate. Arguably, Apple hasn’t yet had the time to [...]

Ariad Pharmaceuticals, Inc. (ARIA), Infinity Pharmaceuticals Inc. (INFI), Oncothyreon Inc (USA) (ONTY): What’s Moving These Biotech Stocks?

Sun, 19 May 2013 12:43:24 EDT

As one of the most important conferences in biotechnology approaches (ASCO) we are seeing wild swings of volatility. On Thursday there were several stocks that moved to the downside, and in this piece I am determining if any are a buy after the large moves. Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) Shares of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) [...]

Exelon Corporation (EXC), Duke Energy Corp (DUK): Will Uranium Costs Kill Nuclear?

Sun, 19 May 2013 12:43:01 EDT

Uranium prices are in for 2012, and costs continue to head higher. The magic molecule’s price tag is up over 400% in the past decade and could continue to cut into your dividend stocks’ profits in the years ahead. I ran the numbers for some of the top nuclear-producing utilities in the country, and here’s [...]

Aruba Networks, Inc. (ARUN): What To Know

Sun, 19 May 2013 12:40:13 EDT

Aruba Networks, Inc. (NASDAQ:ARUN) (NASDAQ: ARUN) reported earnings on May 16. Here are the numbers you need to know. The 10-second takeaway For the quarter ended April 30 (Q3), Aruba Networks met expectations on revenues and missed estimates on earnings per share. Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share dropped significantly. [...]

Bank of America Corp (BAC), Citigroup Inc (C): Is the Stock Market Getting Frothy?

Sun, 19 May 2013 12:39:27 EDT

Given that the Dow Jones Industrial Average (Dow Jones Indices:.DJI) recently crossed the 15,000-point threshold for the first time in history, it should come as no surprise that there’s an ongoing debate about whether stocks are headed for another bubble. The title of a recent CBS MoneyWatch article sums up the sentiment perfectly: “Stock Market [...]

Cisco Systems, Inc. (CSCO), Microsoft Corporation (MSFT), JPMorgan Chase & Co. (JPM): Three Stocks Driving Stock Markets to New Highs

Sun, 19 May 2013 12:37:16 EDT

Another week, another record close for stock markets. The Dow Jones Industrial Average (Dow Jones Indices:.DJI) rose 1.56% on steady gains this week, and the S&P 500 moved 2.07% higher. A 1% drop in household debt released on Tuesday and a strong consumer confidence reading on Friday had the greatest impact on the markets. Leading [...]

Chevron Corporation (CVX) & Exxon Mobil Corporation (XOM): What’s The Difference?

Sun, 19 May 2013 12:36:16 EDT

As energy producers continue their balancing act between oil and natural gas production, price swings have left two of the industry’s biggest producers scratching their heads. For the past few years, low natural gas prices have left these producers looking for more oil. Now, with the price of crude oil falling in the first quarter, [...]

Pfizer Inc. (PFE), Sanofi SA (ADR) (SNY), Onyx Pharmaceuticals, Inc. (ONXX): Will ASCO Unlock Big Value in This Cancer Drug Class?

Sun, 19 May 2013 12:35:10 EDT

There’s little denying that Roche Holding Ltd. (ADR) (OTCBB:RHHBY)‘s cancer wonder drug Avastin has been a godsend to cancer patients and investors alike. Avastin — which the Food and Drug Administration has approved to treat metastatic colorectal cancer (as a first-line and second-line treatment), metastatic HER2-negative breast cancer, and metastatic renal cell carcinoma, and as a [...]

Research In Motion Ltd (BBRY): What Does This Good News Mean?

Sun, 19 May 2013 12:33:50 EDT

Unlike Nokia Corporation (ADR) (NYSE:NOK), another mobile-phone maker that has new phones and a new OS and is in the early stages of fighting its way back to relevance, Research In Motion Ltd (NASDAQ:BBRY) has shared some good news of late. Its new Q5 smartphone, similar to the premium Q10 and complete with Research In Motion [...]

Silver Wheaton Corp. (USA) (SLW), Yamana Gold Inc. (USA) (AUY): Why I’m Buying Mining Stocks

Sun, 19 May 2013 12:33:07 EDT

It’s been a pretty good year for my portfolio for two particular reasons: The stock market rally has been practically unstoppable, and I’ve remained diversified throughout the past couple of years, which has certainly helped spread around my risk and reward. One area, though, that has been a chronic underperformer for upwards of the past [...]