saveyourassetsfirst3 |
- Harvey Organ: IMF Throws EU Under the Bus!
- Jim Willie Breaks Down GREEK CRISIS END GAME
- “Boots on the Ground” Report From Greece
- Stephen Corley: Can the central banks really save the world?
- Why Greece is GAME OVER
- Silver About to Turn More Volatile
- Bill Holter Warns “Greece is Going to Happen HERE!”
- Gold Regains Euro Loss as Greece Set to Vote Yes Say Bookmakers, Indias Demand to Buy Hits Summer Lull
- Global Debt Time Bomb Ticks – Puerto Rico Is Next
- Max Keiser Interviews GoldCore’s Mark O’Byrne
- HUI Gold Stocks Most Destructive Bear Market in History
- Gold Nears Trading-Range Bottom
- CHARTS : Gold: Moment Of Truth
- Comex Gold Futures (GC) Technical Analysis – July 2, 2015 Forecast
- Silver Forecast July 3, 2015, Technical Analysis
- Gold Tests Breakdown Line
- Weak US jobs report raises new doubts about Fed rate cut
- Guess What Happened The Last Time The Chinese Stock Market Crashed Like This?
- Lost in Uraniums Investment Desert
- Bo Polny – Gold & Silver Paradigm Shift with Price Explosion!
- What If You Had An Italian Bank Account? Or A Portuguese Bond?
- Credit Market Warning
- The Financial RESET & Triple Digit SILVER — CEO Keith Neumeyer
- This strategy could net you huge gains in Greek stocks
- Top analyst: Three of the best income stocks you can buy today
- Rick Rule: A 'once-in-a-decade' opportunity in the oil sector
- Top Trader: Time to short the S&P 500
- Ritholtz on Gold
| Harvey Organ: IMF Throws EU Under the Bus! Posted: 03 Jul 2015 12:30 PM PDT The IMF has thrown the EU under the bus!!! Submitted by Harvey Organ: Good evening Ladies and Gentlemen: Here are the following closes for gold and silver today: Gold: $1163.00 down $6.50 (comex closing time) Silver $15.54 down 1 cent. In the access market 5:15 pm Gold $1167.00 Silver: $15.68 First, here is […] The post Harvey Organ: IMF Throws EU Under the Bus! appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| Jim Willie Breaks Down GREEK CRISIS END GAME Posted: 03 Jul 2015 11:38 AM PDT In the MUST LISTEN special Holiday Edition alert below, the Golden Jackass breaks his silence on the Greek Crisis and the END GAME… Submitted by Craig Hemke, TFMetals Report: Download Podcast (Right Click + ‘Save As’) As an Independence Day Special, Jim Willie joins us for a 90-minute discussion that ranges from dollar demise to Greece […] The post Jim Willie Breaks Down GREEK CRISIS END GAME appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| “Boots on the Ground” Report From Greece Posted: 03 Jul 2015 10:30 AM PDT Like most locals, I've been steadily hitting the ATM for the past weeks to amass some emergency cash. I ventured out today for the first time since the capital controls were installed yesterday to have a look around… Submitted by Simon Black, Sovereign Man: [Editor's note: This letter was written by a Greek-American friend […] The post "Boots on the Ground" Report From Greece appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| Stephen Corley: Can the central banks really save the world? Posted: 03 Jul 2015 09:03 AM PDT What's all the fuss about? Weeks, no, years of concern over Greece, whose crazed posturing threatens to bring the world financial markets to the abyss, has evaporated for the moment into, well nothing much at all. The economic and financial consequences are actually dire and yet once more, any concern shown by the global bond, currency and equity markets has less to do with a possible default and subsequent meltdown rather than with their own structural inefficiencies, namely liquidity or over-valuation. Crisis, what crisis? In China's case, which is the only market seemingly in tandem with Greece's problems, it's just unparalleled lunacy combined with naked greed and mass ignorance of the laws of gravity. Europe's own banking system is not so robust though that it can withstand sovereign default with a shrug but the ECB itself stands at huge risk both from the emergency liquidity assistance and monies owned by the Greek Central Bank to other Eurozone banks, which ultimately is a further ECB liability. At approximately €190 billion, these two amounts are considerably greater than the size of the ECB's own capital, if one chooses to ignore the reserves of the Eurozone together. Under normal circumstances therefore, one could forgive the journalists and commentators dominating the news at every juncture with their sense of drama and apocalyptic language. But as I and others regularly point out, these are not normal times. By their continued advocacy of a near zero interest rate policy, governments and central banks have negated any of chance of the market applying its normal corrective forces and we have to live with the consequences, namely asset bubbles. Debt bubble We've had tech and housing bubbles and now we have the debt bubble. It should be of grave concern. The fallout from Greece could have a hugely destabilizing effect on eurobonds and by extension the ECB's balance sheet, at which point does one question the validity of the euro itself? Semantics aside, Greece is bankrupt and whether or not missing an IMF payment is technically a default is just dragging out the news for the sake of it. Rather like the extended and poor hand of poker the dangerous Greek government is playing, it masks a persistent problem to which there seems no answer. Indeed when one is cobbled together, it can of necessity only result in dire consequences for the Greek economy, its people, Europe and ultimately global financial markets. But who cares? It seems the persistent belief in the white knight of combined massive liquidity assistance to markets and a refusal to alter the low interest rate regime forces people to believe that la la land is actually real. Equities had their customary sneeze but the bargain hunters are back and we've had sharp reversals whilst the news in Southern Europe can hardly be said to be comforting. Gold, the normal pillar of strength in chaotic times is in a coma. Gold bears prowl In fact the constant buying support in gold, right below and above $1,180, has been shattered. As a result, the disappearance of the short term base established in recent months, now rebranded as a top, has turned the technicals bearish. Without a fast return to $1,182 the case for the downside looks frankly overwhelming. Gold seems incapable of rising on good or bad news and the constant manipulation in the form of organised sales of paper futures pretty much guarantees price suppression anyway. Throw in the the ultimate supremacy of the US dollar in the months ahead and the kiss of death looks complete. * Stephen Corley first worked for the Rothschild family in his long City career and now runs a company doctor consultancy Oryx Projects from Dubai. He writes exclusively for ArabianMoney. | |||||||||||||||||||||||||||||||||||||
| Posted: 03 Jul 2015 09:00 AM PDT What the world is not seeing is exactly how the Debt Emperor is wearing no clothes! There is no way these bureaucratic clowns can enforce anything, and if they cannot control a tiny, defenseless country like Greece, then for EU, BIS, and all other alphabet-types that are a part of the debt meister's enclave, it […] The post Why Greece is GAME OVER appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| Silver About to Turn More Volatile Posted: 03 Jul 2015 08:15 AM PDT Is a period of extreme volatility about to return to the silver market? Submitted by Deviant Investor: Silver has moved sideways for about nine months, after it moved sideways from a slightly higher level for about 14 months. Boring! The big events in the past 5 years have been: August 2010: Silver began a […] The post Silver About to Turn More Volatile appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| Bill Holter Warns “Greece is Going to Happen HERE!” Posted: 03 Jul 2015 08:06 AM PDT Bill Holter joins The Doc for an Exclusive Update on the Greek Crisis, and the Potential for a Full Derivatives CONTAGION, Discussing: Greek problem is not $3 billion, its $3 TRILLION IN DERIVATIVES– Will ISDA Allow Default? Greek default WAS NOT PRICED IN- Why a MASSIVE LIQUIDITY EVENT has been triggered! End Game for Greek […] The post Bill Holter Warns “Greece is Going to Happen HERE!” appeared first on Silver Doctors. This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||
| Posted: 03 Jul 2015 08:02 AM PDT Bullion Vault | |||||||||||||||||||||||||||||||||||||
| Global Debt Time Bomb Ticks – Puerto Rico Is Next Posted: 03 Jul 2015 06:58 AM PDT The Puerto Rico situation may not remain a local crisis for much longer, and none other than ” Turbo Timmy” Geithner is in the middle of it all… Submitted by Mark O’Byrne, Goldcore: – Puerto Rico Governor says island cannot pay its $72 billion debt – Puerto Rico debt 15 times per capita median debt of […] The post Global Debt Time Bomb Ticks – Puerto Rico Is Next appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| Max Keiser Interviews GoldCore’s Mark O’Byrne Posted: 03 Jul 2015 06:02 AM PDT gold.ie | |||||||||||||||||||||||||||||||||||||
| HUI Gold Stocks Most Destructive Bear Market in History Posted: 03 Jul 2015 02:30 AM PDT marketoracle | |||||||||||||||||||||||||||||||||||||
| Gold Nears Trading-Range Bottom Posted: 03 Jul 2015 02:30 AM PDT investing | |||||||||||||||||||||||||||||||||||||
| CHARTS : Gold: Moment Of Truth Posted: 03 Jul 2015 02:25 AM PDT actionforex | |||||||||||||||||||||||||||||||||||||
| Comex Gold Futures (GC) Technical Analysis – July 2, 2015 Forecast Posted: 03 Jul 2015 01:30 AM PDT fxempire | |||||||||||||||||||||||||||||||||||||
| Silver Forecast July 3, 2015, Technical Analysis Posted: 03 Jul 2015 01:30 AM PDT fxempire | |||||||||||||||||||||||||||||||||||||
| Posted: 03 Jul 2015 01:30 AM PDT dailyfx | |||||||||||||||||||||||||||||||||||||
| Weak US jobs report raises new doubts about Fed rate cut Posted: 02 Jul 2015 08:41 PM PDT Is the weakest US economic recovery in history now in trouble with a strong dollar and an economic slowdown in China and Europe? Housing and autos look good but factory orders are slowing. Wage rises are just not happening. So why is Wall Street so high absent QE? Princeton Professor of Economics Alan Krueger discusses the US labor market’s problems on Bloomberg’s ‘Market Makers’… | |||||||||||||||||||||||||||||||||||||
| Guess What Happened The Last Time The Chinese Stock Market Crashed Like This? Posted: 02 Jul 2015 05:54 PM PDT
Over the past several months, I have been trying to hammer home the comparisons between what we are experiencing right now and the lead up to the U.S. financial crisis in the second half of 2008. Today, I want to share with you an excerpt from a New York Times article that was published in April 2008. At that time, the Chinese stock market crash was already well underway, but U.S. stocks were still in great shape…
This sounds almost exactly like what is happening in China right now. First we witnessed a ridiculous Chinese stock market bubble form, and now we are watching a nightmarish sell off take place. This next excerpt is from a Reuters article that was just published…
Did you catch that last part? The amount of wealth that has been wiped out during this Chinese stock market crash is already greater than the entire yearly GDP of Brazil. To me, that is absolutely incredible. And now that the global financial system is more interconnected than ever, what goes on over in China has a greater impact on the rest of the globe than ever before. Today, China has the largest economy on the planet on a purchasing power basis, and the Chinese stock market “is the second largest in the world in terms of market capitalization”…
I know that a lot of Americans don’t really care about what happens over in Asia, but when the second largest stock market in the entire world crashes, it is a very big deal. The great financial crisis of 2015 has now begun, and it is just going to get much, much worse. On Thursday, Ron Paul declared that “the day of reckoning is at hand“, and I agree with him. So what comes next? The following is what Phoenix Capital Research is anticipating…
I tend to agree with most of that. I don’t agree that the euro is going to go away, but I do agree that the eurozone is going to break up and be reconstituted in a new form eventually. And yes, we are going to see tremendous inflation all over the world down the road, but I wouldn’t say that it is imminent in Japan or anywhere else. But overall, I think that is a pretty good list. So what do you think is coming? Please feel free to join the discussion by posting a comment below… The post Guess What Happened The Last Time The Chinese Stock Market Crashed Like This? appeared first on The Economic Collapse. | |||||||||||||||||||||||||||||||||||||
| Lost in Uraniums Investment Desert Posted: 02 Jul 2015 04:54 PM PDT Bullion Vault | |||||||||||||||||||||||||||||||||||||
| Bo Polny – Gold & Silver Paradigm Shift with Price Explosion! Posted: 02 Jul 2015 02:50 PM PDT One thing is for certain… all truths pass through three stages; first, they are ridiculed, second, they are violently opposed and third they are accepted as being self-evident. We are presently at the stage one, so feel free to ridicule below as there is plenty of room for your posts. Our next and final post […] The post Bo Polny – Gold & Silver Paradigm Shift with Price Explosion! appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| What If You Had An Italian Bank Account? Or A Portuguese Bond? Posted: 02 Jul 2015 02:32 PM PDT Though it might yet drag on for weeks, months or even years, Greece’s drama can end in one of only two ways: Continued austerity which consigns its most vulnerable 50% to an endless “capital D” Depression, or some form of temporary dictatorship complete with capital controls and wealth confiscation — and a then “capital D” Depression. Either way, some of today’s Greek kids might grow up without ever holding a job in a legitimate business. For more details, see Greece’s hideous choice: More austerity or collapse. But Greece was never the main story. At best (worst?) it’s an illustration writ small of what’s really coming, as the eurozone’s bigger weak economies travel the same road. Italy, Spain, and Portugal will soon need (more accurately demand) a Greek-style bailout, though with a twist: There isn’t enough money available anywhere to bail out economies of that size sufficiently to allow them to remain in the common currency union NOR to manage the debt writedowns that would instantly hit the major European banks if those countries withdraw from the euro. So whatever Greece does, the real crisis is on its way. Here’s a good Zero Hedge analysis of what comes next. To understand this convergence of inevitable and imminent, put yourself in the shoes of an Italian with a local bank account. You’re seeing the footage of Greeks queuing up around the block only to be greeted with “No Money” signs when they finally reach the ATM. And you’re drawing the right conclusion: Get your money out of the local bank and under your mattress, into a tin can buried in the back yard, or into a Swiss franc account even at the cost of a negative interest rate. Later, when Italy has left the eurozone and returned to a much-devalued lira, those euros/francs will be worth twice as much as they are today. Or buy gold just in case Italy gets bailed out with a trillion newly-created euros, causing that currency’s value to plunge. Just don’t leave it in the local bank to be confiscated by the government. All it will take is a few tens of thousands of like-minded Italians, Spaniards and Portuguese to crash their local banking systems. But why would it be only that many? Why would anyone with money in those banks, even if they’re far more optimistic than our hypothetical Italian, not empty their accounts just to avoid the turmoil caused by the pessimists? And why would anyone lend money to those countries for five or ten years, which is what you do when you buy one of their bonds? That banks, governments and hedge funds around the world have gorged on eurozone debt while writing hundreds of trillions of dollars of derivative “insurance” on them is something historians will be scratching their heads over for decades. | |||||||||||||||||||||||||||||||||||||
| Posted: 02 Jul 2015 02:00 PM PDT Long-awaited signs of danger are materializing… Submitted by Chris Martenson, Peak Prosperity: There are large signs of stress now present in the credit markets. You might not know it from today’s multi-generationally low interest rates, but other key measures such as liquidity and volatility are flashing worrying signs. Look, we all know that this centrally […] The post Credit Market Warning appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| The Financial RESET & Triple Digit SILVER — CEO Keith Neumeyer Posted: 02 Jul 2015 01:45 PM PDT Keith Neumeyer, the outspoken and courageous CEO of First Majestic Silver joins the SGTReport to dissect the obscene levels of precious metals manipulation by the international banking cabal. Neumeyer has led the charge to expose the manipulation of silver via the paper markets and in 2014 suggested that silver mining companies ban together to form their own […] The post The Financial RESET & Triple Digit SILVER — CEO Keith Neumeyer appeared first on Silver Doctors. | |||||||||||||||||||||||||||||||||||||
| This strategy could net you huge gains in Greek stocks Posted: 02 Jul 2015 11:35 AM PDT By Nick Giambruno, Senior Editor, International Man:For the unprepared, it happens like a mugging… When you hear a central banker or politician deny that something is going to happen to bank depositors, you can almost be certain that it will happen. And probably soon. Coming from a government official, the real meaning of "No, of course not" is "Could be tomorrow." There's a reason for the dishonesty. The government needs to take the public by surprise. Otherwise they won't get the results they want from capital controls or a bank holiday. The term bank holiday is a politician's euphemism. When one happens, you won't be celebrating. You won't be able to access your bank account, and you'll be worried. How will you get by, and how long will the lockout last? And when it ends, will all your money still be there? Will any of it remain? Calling the experience a bank holiday is like calling a street mugging a surprise party. Once the banks are closed – or on "holiday," as the government puts it – the politicians are free to help themselves to as much of the customer deposits (including yours) as they want. It's like an all-you-can-steal buffet. A bank holiday usually dovetails with capital controls, which are restrictions on the free flow of money out of the country. Capital controls make it hard for the country's remaining wealth to dodge a future mugging. Bank holidays and capital controls are all about the government maximizing the amount of money available for them to confiscate during a crisis. Pen up the sheep, and they're easier to shear. It's a common pattern… 1) country in financial trouble, 2) government denials, 3) surprise bank holiday, 4) wealth confiscation, and 5) capital controls. It's a pattern we've seen repeated in many countries in economic crisis. We saw it in Cyprus during their banking crisis of 2013. The trap slammed shut without warning on an otherwise ordinary Saturday morning. The government declared a surprise bank holiday. Capital controls and a bank deposit confiscation followed. It occurred despite repeated promises from the highest Cypriot politicians that bank deposits would be safe. And now we are seeing the same pattern in Greece. For the past month, Greece's government has been denying that it intends to impose capital controls. Yesterday, Sunday morning, the Greek Finance Ministry repeated the denial yet again. Then on the same day – a few hours later – the Greek government declared a weeklong bank holiday. And they would impose capital controls after all. But don't worry. The Greek Prime Minister promised that bank deposits would be “completely safe." Rather than being "completely safe," they are far more likely to be harvested by the Greek government, which is free to do as so many troubled governments have done… take the money and run. Given Greece's years of chronic financial weakness, none of this should come as a surprise. There was ample time for any Greek citizen to protect himself from what the government is now doing. But now, with the bank holiday in place, it's too late. Moving money into something that Greek politicians can't steal with a couple taps on a keyboard – like a Greek bank account – would have bought a large measure of protection. A bank account in another EU country like Austria, a piece of real estate in South America, some physical gold in Singapore or a brokerage account in Hong Kong would have been just what the doctor ordered. Most people understand that it's foolish to keep all their eggs in one basket. Yet they fail to go far enough in applying the principle. Diversification isn't just about investing in multiple stocks or in multiple asset classes. Real diversification – the kind that keeps you safe – means holding assets in multiple countries, so that you're not overexposed to the economic and political risks that are present in every country. The problem is, despite having options available to them, many Greeks had a "this can't happen here" mentality. So they did nothing to prepare. The reality is, what happened in Greece can happen in any country, as it has happened throughout history. But could it really happen in the US? According to Judge Andrew Napolitano, the troubling answer is YES. The judge is a legal expert. He knows all about bank holidays, capital controls, and other shenanigans politicians pull. The judge has said, "People who have more than $100,000 in the bank are targets for any government that's looking for money to shore up its own inability to manage its finances." The whole ordeal in Greece is yet another example of why international diversification is so important. It's a prudent strategy because it frees you from absolute dependence on any one country. Achieve that independence, and events or policies where you live can never dominate your life. Wealthy families have been doing it for centuries. Today, with modern communications, international diversification is within everyone's reach. International Man's mission is to help you protect your personal freedom and make the most of financial opportunity around the world. Global diversification is at the heart of it. Discovering the best investment opportunities around the world is another. And, ironically, the best opportunities often show up after a government has done its worst to a country. For example, in places like… Greece. Investor sentiment in Greece is nearing the point of maximum pessimism… the point at which almost nobody wants to buy. Prices of Greek stocks have already crashed headfirst into the pavement, so we may be getting close to the best time to buy. As Baron Rothschild advised: Buy when the blood is in the streets. That's what crisis investing is all about, and it's enormously profitable. Seeking out home runs in crisis markets is exactly what Doug Casey and I do in each monthly issue of Crisis Speculator. Back in 2013 there was another crisis in a Mediterranean country… Cyprus. Doug and I put our boots to the ground in Cyprus to search the rubble for investment bargains that would be too good to resist. And we found them. Despite all the ugly headlines, sound, productive, and well-run Cypriot businesses continued to produce earnings and pay dividends. Anyone with a little money and a cool head could have bought their stocks on the ultra-cheap. One of the Cyprus companies we recommended has more than tripled as of this writing. Another has more than doubled. Two others have come close to a double. Our readers have loved the experience. We expect that even bigger bargains are emerging nearby, in Greece. The financial crisis in Greece is not going to destroy the solid companies operating there. But it is going to make their stocks extremely cheap. And that could mean huge profits for you. For full coverage of this rich profit opportunity, be sure to check out Crisis Speculator by clicking here. | |||||||||||||||||||||||||||||||||||||
| Top analyst: Three of the best income stocks you can buy today Posted: 02 Jul 2015 10:31 AM PDT From Steve Sjuggerud, Editor, True Wealth: Most investors buy stocks for either growth or income. But in rare cases, you can have both… Three major companies are paying extreme yields and beating the market this year. They’re large caps you’ve likely heard of before… but probably never realized pay out these kinds of dividends. Let me explain… The companies in the table below are true large-cap stocks. They come from different industries and share little in common as businesses. But they all share two traits – they’re paying hefty yields and beating the S&P 500 handily in 2015. Take a look…
All of these companies pay yields that are at least double the S&P 500. Surprisingly, these companies are also cheap, based on earnings. They trade for discounts of 21%-54% below the S&P 500. The first of these businesses is Blackstone Group (BX)… which is another great way to play today’s housing boom. Blackstone is one of the planet’s biggest “alternative” asset managers. The company invests in private equity, real estate, hedge funds, and high-yield credit funds. Although diversified, much of Blackstone’s profits come from its real estate investments. And it’s those profits that allow the company to pay out big 6.3% dividends to shareholders. The next two are more common household names… AT&T (T) is a cable, Internet, and communications giant. It’s not every day you run across a $182 billion company paying out 5%-plus in dividends. Regardless of how AT&T finishes out the year, it’s hard to ignore that kind of income. The last big income producer is General Motors (GM). GM is one of the world’s largest auto manufacturers. It earns billions of dollars in profits each year and pays a solid 4% dividend right now. Most importantly, these companies are all outperforming the S&P 500 this year. Blackstone, in particular, is soaring. Take a look…
Not only do these companies pay extremely high yields… but they’re delivering capital gains as well. You haven’t missed it yet, though. They’re still cheaper than the stock market. It’s rare to find a group of multibillion-dollar companies offering growth and income. But that’s exactly what we have today with these three. If you’re looking for safe income, with upside, check these three names out. Good investing, Steve P.S. If you haven’t seen my warning about a new global currency rule that’s rumored to go into effect this October, I urge you to check out my latest interview. If you own U.S. assets – stocks, bonds, real estate, or just cash in the bank… you must be aware of this huge upcoming change. You can get all the details in my interview right here. | |||||||||||||||||||||||||||||||||||||
| Rick Rule: A 'once-in-a-decade' opportunity in the oil sector Posted: 02 Jul 2015 09:34 AM PDT From Henry Bonner in Sprott’s Thoughts: “Midstream” oil stocks are this attractive about once every decade, says Rick Rule, Chairman of Sprott U.S. Holdings. In a recent round-table with Byron King (Agora Financial) and Matt Badiali (Stansberry Research), Rick explained why he’s looking at one segment of the oil sector. You can listen to his full comments here (registration required):
Midstream companies are involved in processing and transportation of oil and gas. These companies have been popular with investors because they may be less risky and volatile than exploration and production companies. They tend to make money through long-term transportation contracts that are “insulated” from oil price swings. In particular, Master Limited Partnerships (MLPs) own transportation infrastructure such as pipelines and charge oil companies to move oil and gas to market. These companies pass on their revenues to shareholders, which can lead to large dividends with moderate exposure to oil and gas prices. The last major opportunity for MLPs was in March 2009, after the financial crisis cut down energy prices and stocks. The Alerian MLP index, which tracks 50 prominent companies in the sector, rose 356% from then through September 2014. MLPs are not completely independent of oil prices. Since September, the Alerian MLP Index is down around 25%. Last year, Boardwalk Pipeline Partners cut its payout to investors by 80% after it failed to renew its existing contracts with oil producers. Rick sees this as a good chance to start buying MLPs as they’re still generating attractive yields. The Alerian MLP Index pays a 6.29% yield as of June 29, versus 2.04% for the broad stock market (as represented by the S&P 500). “We are seeing returns of 6% cash already, and MLPs will be able to grow their topline free cash flows,” says Rick. He believes that some MLPs will be able to pay out even more thanks to today’s ultra-low interest rates. MLPs can borrow cheaply to acquire new assets from distressed sellers – groups that are “monetizing” their processing and transportation assets to pay salaries. MLPs can increase their payouts from here if they act aggressively and use low interest rates to fund acquisitions, says Rick. Rick also believes there is an opportunity to fund exploration and production in oil and gas, by lending money or acquiring stakes in projects. Bankers are less willing to lend money for oil production now. As Rick explained, during the last few years where oil prices were high, individual bankers often booked big bonuses for making loans to oil and gas firms. Their bonuses didn’t depend on how well those loans performed over the long haul, so this led to lower standards and excessive credit being extended for oil and gas. Now that returns are being affected by low oil prices, banks will probably revise their incentive structures, so that individual bankers will not pour as much money into oil and gas. At the same time, financial regulations known as “Basel III” discourage the largest banks from lending to private companies – like those in the oil and gas sector. Rick explained how this works: Banks have different reserve requirements for different classifications of loans. If Deutsche Bank, which is one of the major capital banks, makes a loan to Shell or Exxon, they have to make a provision for that loan on their balance sheets. They have to set aside 7% or 8% of the value of that loan (in case it goes bad). By contrast, if they were lending money to a sovereign entity – even Greece, Ireland, or Portugal – the bank doesn’t need to have any provision for that loan so long as they purport to hold that loan to maturity, irrespective of its market valuation in the future. So a bank can borrow cash from depositors at 1% and lend it out to a sovereign borrower at, say, 3.5%, picking up 2.5% without having to reserve any space on its balance sheet. So the incentives are increasing for big banks to make sovereign loans as opposed to loans to private companies (where they would have to make higher loss provisions). Now that banks are less interested in making loans to oil and gas companies, this can be a good opportunity to step in as a lender, says Rick. You see, some oil and gas companies stand to lose their drilling rights on a property if they do not go through with drilling. In some cases, they may have spent $1 million or more preparing a property for a drill program. That money has gone into administration, exploration, 3D seismic, or geophysical surveys. That investment will go to waste if the company loses its drilling rights, so investors can obtain favorable terms if they choose to participate, says Rick. “The industry has ‘down’ cycles. Being aggressive during those down cycles and then profiting during the last three upcycles is what made me rich,” Rick comments. Want to know more about how to play upcycles and down cycles? Meet us in Vancouver this summer, at the Sprott-Stansberry Vancouver Natural Resource Symposium. Rick will be hosting the event and speaking with investors at length. You’ll also hear from well-known investors Eric Sprott, David Harquail, Bill Bonner (my dad), and many others. Click here to find out more. You can secure your ticket here. | |||||||||||||||||||||||||||||||||||||
| Top Trader: Time to short the S&P 500 Posted: 02 Jul 2015 08:28 AM PDT From Jeff Clark, Editor, Stansberry Short Report: The stock market is likely headed lower over the next few weeks… Last week, I told you a “Head and Shoulders Top” pattern was forming on the chart of the S&P 500. This is a bearish pattern that often signals the end of a bull trend and the beginning of a bear trend. And it can lead to large, fast gains for folks willing to bet on the downside. Now, this pattern is playing out. And traders are getting the chance to profit… Take a look at this updated chart of the S&P 500…
On Monday, the index broke down from the Head and Shoulders Top pattern. The target for this downside move is about 2,038. But we could see the S&P 500 fall all the way to 1,990 over the next several weeks if we get a particularly hard decline. Of course, it won’t be a straight shot lower. We’re going to get violent bounces off of oversold conditions. That’s how traders can profit on the short side. Traders who want to profit on the short side need to be nimble. They need to take profits when the market gets oversold and is approaching logical support levels… then look to re-short as the index bounces back toward resistance. For example, traders who shorted the market last week in anticipation of the Head and Shoulders Top pattern playing out should have locked in profits on Monday’s big drop. Monday’s selloff pushed the S&P 500 to within spitting distance of its 200-day moving average (DMA). The index was oversold and stretched from both its nine-day exponential moving average (EMA) and its 50-DMA. That was a logical spot to look for a bounce. And that’s what we got yesterday. The S&P 500 rallied all the way back up to the neckline of the Head and Shoulders Top pattern (near 2,080) on Wednesday morning. It has additional resistance overhead at the nine-day EMA (at 2,090) and the 50-DMA (at 2,105). These are all good levels for traders to re-establish short positions. To sum up, the intermediate-term trend for the stock market is now lower. We’ll likely see the S&P 500 fall to 1,990 sometime between now and October. But in the meantime, traders should take advantage of bounces like we saw yesterday and use them as short-selling opportunities. Best regards and good trading, Jeff Clark | |||||||||||||||||||||||||||||||||||||
| Posted: 02 Jul 2015 07:01 AM PDT Biwii | |||||||||||||||||||||||||||||||||||||
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