- Created on Friday, 17 May 2013 00:00
- Written by Aaron Gentzler, Editor, Unconventional Wealth
- Hits: 83
Imagine you need money, but the banks are closed and the ATMs are empty. Your credit card is frozen. You need gas for your car, but all the gas stations are shuttered.
Imagine you need food too, but the grocery store shelves are bare and the doors are barred.
Now imagine someone in your family has a medical emergency, but all the police, firefighters and EMTs are hunkered down in their own homes… protecting their own families.
How far away are we from this scenario? Ask victims of Hurricane Katrina or Superstorm Sandy. The answer is 72 hours. Three days. That's all that stands between you and chaos.
What I want you to do now is imagine the scale of Katrina spread across your entire time zone or even the whole country. Now imagine it lasting a week, two weeks or more. Are you prepared?
- Created on Thursday, 16 May 2013 00:00
- Written by Bill Bonner, Chairman, Bonner & Partners
- Hits: 213
Whoa! Investors are acting as if it were 2007 all over again.
Emboldened by soaring stock prices and record-low borrowing costs, stock investors are taking out loans against their portfolios at the fastest pace since before the Great Recession hit.
So-called margin debt hit $379.5 billion in March, the highest level since July 2007 when such debt hit an all-time record of $381.4 billion, according to the most recent data available compiled by the New York Stock Exchange.
The trend signals that investors are more comfortable with stocks and are more willing to use borrowed money to buy more securities in hopes of garnering fatter returns in a hot market that has pushed the Dow Jones industrials up more than 15% in 2013.
- Created on Wednesday, 15 May 2013 00:00
- Written by Justice Litle, Editor, Strategic Wealth Report
- Hits: 100
There is a common view – shared by smart analysts and investors – that the US Treasury bond market is headed for a crash.
At some point, say the bond bears, there will be a massive exodus from Treasurys.
Major carnage will ensue. And "bag holders" (those still holding large bond positions) will suffer debilitating losses.
In my paid-for newsletter Strategic Wealth Report, we're very happy to take the other side of that wager. A full-blown bond crash? There are better odds of Rand Paul being elected president.
I am NOT recommending you rush out and buy US Treasurys. They are a lousy value at current levels... and there are much better things to invest in. But please don't get suckered into believing in a bond market crash.
To understand why bonds will not crash, you need to first understand the following:
- Created on Tuesday, 14 May 2013 00:00
- Written by Jim Nelson, Editor, Income & Dividend Report
- Hits: 139
President Reagan is inaugurated as the 40th president of the United States...
Pope John Paul II is shot and nearly killed by Turkish gunman Mehmet Ali Ağca as he enters St. Peter's Square in Vatican City...
And "Donkey Kong" is released on the hit Nintendo game console...
The year is 1981... and another important event takes place: the start of the most profound Treasury bond market rally of all time.
Look at Treasury yields over the last 40 years. Remember that when bond prices rise, yields drop.