Major Markets Marching Towards 2013 Price Targets

One Last Energy Recommendation for 2013

 Summary

  •  GDP and employment continue to recover, but the payroll tax and the sequester could be a drag on the economy and revenue growth for companies
  • Earnings were good this earnings season, but investors and analysts are concerned about revenue growth
  • The bullish case includes: low inflation, accommodative fed, low rates, the housing recovery, an energy boom
  • Bearish case includes: Europe financial crisis; instability, uncertainty in the Middle East; political dysfunction in the U.S. and Europe; a black swan event
  • Dividend paying stocks is the place to be long-term
  • This month’s recommendation, the last energy stock for the year

 Economic Outlook

Below are some of the key economic indicators that are relevant this month. [Read more...]

Gold Prices Plunge! What Does This Mean For Its Future?

“The yellow metal is down 24 percent from its highs. Is this the end of the gold bull? Or is it a temporary correction?

“I believe it’s temporary! In fact, I expect to see huge amounts of capital flowing back into gold, taking the prices far above their previous highs. Here’s why!”

We’re only 4 months into 2013, and we’ve already had a series of historic financial crises.

Investors have been bloodied in multiple markets. And the battering hasn’t yet run its course.

For maximum success in our investing, we need to anticipate the strongest trends, and get in front of them. Right now, one of the largest global trends is…

Fear!

Investors are scared, and rightly so. Even the assets that used to be safe are risky now.

Nevertheless, wherever there is danger, there is also opportunity. When oceans of capital move from market to market, there are big winners and big losers. If we want to flourish as investors, we need to follow the money. We must anticipate where it’s going, and get there first. That’s when tremendous profits can be made.

Right now, the world is awash in liquidity that’s flowing from one asset to another. The markets are scared and confused. That’s why we’re seeing such truly bizarre events, like a crash in the price of gold even as global central banks have printed almost $17 trillion (!) in new money. [Read more...]

A Small Island in the Mediterranean Sea Reminds Us of Risks of the Global Financial System

Another Energy Company Recommendation

Summary

  • The Cyprus banking crisis was a major recent event, and it reminds us of the global risks investors face.
  • The markets reflect the many positives of the economy: an accommodative Fed; low inflation and interest rates; earnings and cash flow growth; improving real estate markets; energy is a bright spot in the economy; alternative investments potential are limited making stocks attractive.
  • The markets are up about 11% year-to-date, how much further can they go?
  • Last month we looked at the U.S. outlook for oil, this month we look at the global oil outlook
  • Global demand is expected to increase in 2013.
  • Global surpluses have improved, and is helping stabilize prices but not bring them down significantly
  • I try to answer the questions, how much oil does the world have, and how long will these global reserves last?
  • This month’s recommendation is another high yielding Canadian energy company. [Read more...]

“Don’t Be Deceived: The Shortage of Cheap Oil is Real, and Long-Lasting!”

“Recent media reports claim that new reserves like the Bakken formation will provide abundant oil, make America self-sufficient, and bring oil prices back down. Rubbish!

“Oil prices will remain high for years to come. Here are seven reasons why!”

As the name of this publication indicates, we focus our investing efforts on gold and energy—especially on crude oil, the most important form of energy in the modern economy.

There’s been a gusher of news reports lately, telling Americans that we’ll have abundant crude oil for the next decade or more.

For example, the current World Energy Outlook report from the IEA (International Energy Agency) predicts that just five years from now, the United States will pass Saudi Arabia to become the world’s largest oil producer. The New York Times went even further, reporting that the US is on track to be “all but self-sufficient” in oil.

Even Harvard University has joined the fun. It published a report called “Oil, The Next Revolution: The unprecedented upsurge of oil production capacity and what it means for the world.” That report included cheery graphics like this one: [Read more...]

Collectors, Investors and even Rare Coin Dealers, Falling Victim!

Some new suggestions on how to buy and sell safely!

By James DiGeorgia

Over the years I have preached to collectors and investors just like you, to be careful not to give their rare coins and or precious metals to ANY dealer or broker for storage.

Having literally grown up and in the rare coin and precious metals market, I have seen virtually every scam and convenient bankruptcy possible. Among the most expensive have been the collapses of so called “independently audited” storage facilities as well as brokers and dealers that issue “certificates of precious metals deposits”.

In my opinion, if you don’t take physical possession, you’re setting yourself to be robbed. Always take physical possession, rent a safety deposit box and store your precious metals and rare coins on your own. The cost of insurance for even a great deal of value is very inexpensive.

Besides storage risk, there’s a growing risk of being scammed in the rare coin and precious metals business that you must not ignore. This rising threat is not only putting investor/collectors like you at risk, but this scam has also put professional dealers with decades of experience at risk. [Read more...]

Can the US Become Energy Independent?

Here’s an Energy Name

You Can Be Independent With

Summary

The bearish and bullish case has not changed that much. I have written about the bullish and bearish case in past monthly issues. Below is a summary:

Bearish Case

  • The main headwind for the economy is lawmakers
  • Tax increases, specifically payroll taxes, and taxes on rich may be a drag on the economy
  • $85 billion spending cuts will cause slower growth
  • High gas prices at pump
  • Although Europe has improved, risks remain
  • Since the Arab Spring, the Middle East continues to be unstable and uncertain

Bullish case

  • Low rates, don’t fight the Fed
  • Housing is improving
  • Improving global economy, Iran
  • Valuations
  • Energy boom is causing an increase in high paying jobs, increased U.S. oil reserves and production, stabilizing energy prices. This issue will focus on U.S. oil and the energy boom.  [Read more...]

“Coming Your Way: Debt Defaults and a Bond Meltdown!”

“While Congress bickers about spending cuts and prepares to fight over the debt ceiling—again!—there are not one but two far more serious financial crises approaching.

“As investors, we can and must prepare for the fallout. Thankfully, there’s one single investment that’s positioned to profit from both of these crises. That’s our topic this month!”

Two major financial crises are facing America. They will cause wrenching disruptions to our nation as a whole, and to our lives as individuals.

On a national level, they can’t be avoided. But on an individual level, they can. In fact, you can take huge profits as they unfold—if you play them right.

Let’s start our discussion by asking… [Read more...]

The Economy and Markets at The Start of 2013

Here’s How You Pay for Higher Energy Costs

 Summary

Bullish Case

  • Lots of global liquidity that is pushing up stocks
  • Money starting to leave bond funds for stock funds
  • Consumer is still spending
  • Housing is finally recovering

“Will the Bond Market Melt Down in 2013?”

“The ongoing circus in Washington has grave implications for the US bond market, and therefore for your investments as well.

“This month: the three major threats to the bond market, and three paths to making big profits from the current turmoil!”

“When written in Chinese, the word crisis is composed of two characters. One represents danger, and the other represents opportunity.”

John F. Kennedy, in a speech on April 12, 1959

If any two words describe today’s investing climate, they’re “danger and opportunity.”

The list of dangers is long, and growing. But where there is danger, there is also much opportunity.

When markets are overcome with fear, large moves are possible in a short time. And large moves can mean large profits.

That’s our theme in this issue: the big dangers and big opportunities that await us in 2013.

We’ll start with a brief look at… [Read more...]

“Coming in 2013: Perhaps the Most Challenging Year Ever for Investors!”

“We’re facing the most challenging investing environment we’ve seen in a long time. And the fireworks begin in just a couple of weeks.

“Many Americans are so caught up in the holiday rush that they’re ignoring what’s going on in the markets. Don’t be among them!”

In past issues of GEA, I haven’t said much about the ‘fiscal cliff’ that’s due to arrive on January 1. There wasn’t much point in talking about an event months before it arrived.

After all, Washington had plenty of time to deal with this. And surely, with such a crucial deadline approaching, Congress would set aside its usual bickering and get something accomplished, right?

Right?

Of course, that didn’t happen. And now the United States is about to begin its… [Read more...]