Archive for February, 2012
From High Chart Patterns:
Two companies we’re watching for breakouts are ExxonMobil ($XOM) and Goldman Sachs ($GS). They’re both close to coming out of major patterns.
XOM breaks out of 88 – multi-year pattern out of this one. It’s a slow stock, so even if you don’t plan on trading it, keep it on your radar as…
More stock ideas:
From Frankly Speaking:
Jeremy Grantham of GMO released his Q4 2011 letter, "The Longest Quarterly Letter Ever" over the weekend. In it, he outlined 10 investment lessons I think are worth sharing here (h/t Advisor Analyst):
1. Believe in history
"All bubbles break; all investment frenzies pass. The market is gloriously inefficient and wanders far from fair price, but eventually, after breaking your heart and your patience… it will go back to fair value. Your task is to survive until that happens."
2. "Neither a lender nor a borrower be"
"Leverage reduces the investor’s critical asset: patience. It encourages financial aggressiveness, recklessness, and greed."
3. Don’t put all of your treasure in one boat
"The more investments you have and the more different they are, the more likely you are to survive those critical periods when your big bets move against you."
4. Be patient and focus on…
More on investing:
From The Gold Report:
Opportunities abound across the spectrum of precious metal equities, which remain undervalued as bullion prices continue their upward trends. That’s the word according to Charles Oliver and Jamie Horvat, both senior portfolio managers at Sprott Asset Management. In this exclusive interview with The Gold Report, Oliver and Horvat express cautious optimism about the prospects for gold stocks in 2012.
… TGR: Your $644.5 million Sprott Gold and Precious Minerals Fund ended 2011 with a tough quarter, off 10.6% compared to an 8.7% loss on the benchmark S&P. Your quarterly report cited tax-loss selling as one of the reasons for thinly trading stocks performing poorly. Have you adjusted your portfolio since then?
CO: The portfolio is continuously being upgraded. We made a number of changes during the last quarter. We did some of our own tax-loss selling in the portfolio. When I sold some of those stocks, I tried to redeploy the proceeds into some of the other names that I wanted to own that were also experiencing tax-loss selling. A lot of companies in the junior space were down 70%. It wasn’t through any fault of their own; it was just because the market had no interest in small companies because it was risk averse last year.
TGR: Were the other names you were buying into mainly juniors?
CO: Yes, there were a fair number of juniors, but every segment of the gold stock market is very cheap today. I can find great valuations in small-, mid- and large-cap stocks. All of them are extremely cheap. That’s not always the case. You might think all segments would…
More on precious metals stocks:
Pacific Investment Management Co.’s Bill Gross said investors should embrace a defensive strategy because of the limits of zero-bound interest rates and systemic debt risk in global financial markets.
"An instant replay of these past few decades would have shown that accelerating asset prices weren’t due to any particular wisdom on the part of academia or the investment community but an offensively minded Federal Reserve and their global counterparts who were printing money, lowering yields and bringing forward a false sense of monetary wealth that was dependent on perpetual motion," Gross wrote in a commentary posted on Newport Beach, California-based Pimco’s website today.
Emphasize income, de-emphasize derivative structures that are fully valued and be willing to accept returns lower than historical averages, Gross wrote. The period of muted growth in developed economies, high unemployment and orderly deleveraging Pimco dubbed the "new normal" in the aftermath of the 2008 financial crisis is morphing into a world of credit and zero-bound interest-rate risk, Gross said last month.
"The offensively oriented investment world that we have grown so used to over the past three decades is being stonewalled by a zero bound goal-line stand," Gross, the founder and co-chief investment officer of Pimco, wrote today. "Investment defense is coming of age."
Back in Treasurys
After saying that the rally in Treasurys was over and eliminating Treasurys from his portfolio last year, Gross has boosted the proportion of U.S. government and Treasury debt in his $250.5 billion Total Return Fund (PTTRX) to the highest level since July 2010. In January, he raised the holdings to 38 percent, while increasing his portion of mortgage debt to 50 percent, the highest since June 2009.
The Total Return Fund has gained 2.82 percent this year, beating 95 percent of its peers, according to data compiled by Bloomberg. The world’s biggest bond fund has returned 6.44 percent over the past 12 months, placing it in the 48 percentile, according to data compiled by Bloomberg.
Treasurys with maturities from five to seven years have been the focus of purchases with longer-term debt unattractive due to risk of a pick-up in inflation, Gross said in an interview Feb. 3 on "Bloomberg Surveillance" with Tom Keene and Ken Prewitt. The Fund increased its allocation of Treasury Inflation Protected Securities, or TIPS, to 8 percent, Gross said that day.
"Leveraging has turned into deleveraging," Gross wrote today. "Fifteen percent yields have turned into zero percent money."
U.S. debt entered a bull market in the 1980s, after Federal Reserve Chairman Paul Volcker raised interest rates to as high as 20 percent to tame inflation. In the years that followed, inflation and interest rates declined, pushing up bond prices, which move inversely to yields. The 10-year Treasury yield, which reached a high of 15.8 percent in September 1981, fell to a record 1.67 percent on Sept. 23, 2011. The 10-year note yield fell two basis points today to 1.90 percent.
The Fed cut rates to zero to 0.25 percent in December 2008 and pledged in January to keep the target rate at or near zero until at least late 2014.
"It is Main Street that has failed to keep up with Wall Street and corporate America in the race to see who can benefit more from lower yields," Gross wrote. "As the interest component of personal income gradually weakens, the ability of the consumer to keep up its frenetic spending is reduced."
Pimco, a unit of the Munich-based insurer Allianz SE, managed $1.36 trillion of assets as of Dec. 31.
To contact the reporters on this story: Susanne Walker in New York at firstname.lastname@example.org.
To contact the editor responsible for this story: Dave Liedtka at email@example.com.
More from Bill Gross:
Israeli officials say they won’t warn the United States if they decide to launch a pre-emptive strike against Iranian nuclear facilities, according to one U.S. intelligence official familiar with the discussions.
The pronouncement, delivered in a series of private, top-level conversations, sets a tense tone ahead of meetings in the coming days at the White House and Capitol Hill.
Israeli officials said that if they eventually decide a strike is necessary, they would keep the Americans in the dark to decrease the likelihood that the United States would be held responsible for failing to stop Israel’s potential attack. The United States has been working with the Israelis for months to persuade them that an attack would be only a temporary setback to Iran’s nuclear program.
Israeli Prime Minister Benjamin Netanyahu and Defense Minister Ehud Barak delivered the message to a series of top-level U.S. visitors to the country, including the chairman of the Joint Chiefs of Staff, the White House national security adviser, and the director of national intelligence, and top U.S. lawmakers, all trying to close the trust gap between Israel and the United States over how to deal with Iran’s nuclear ambitions.
Netanyahu delivered the same message to all the Americans who have traveled to Israel for talks, the U.S. official said.
The official spoke on condition of anonymity to discuss sensitive strategic negotiations.
The White House did not…
More on Iran:
2 Easy Ways to Invest in Gold
In short, a physically backed fund actually holds the metal, and the fund's price changes pretty much along with the price of gold (minus the fund manager's fees). This makes for a pretty simple investment thesis: If you think gold is going up and you …
New York, NY – February 28, 2012 – www.InvestorIdeas.com, a global investor research portal, specializing in sector research for independent investors, issues releases the following trading and news snapshot for silver stock, SilverCrest Mines Inc. ( TSX-V:SVL, OTCQX: STVZF).
February 28, 2012 (Investorideas.com Mining stocks newswire) Opportunities abound across the spectrum of precious metal equities, which remain undervalued as bullion prices continue their upward trends.
Silver up 4 percent, gold races toward $1800 on ECB
Bullion rose to a three-month high as markets focused on economic uncertainty driven by an upcoming ECB move to offer another half a trillion euros of low interest three-year loans to banks and companies in need of investment funds.
PRECIOUS-Gold falls as euro drops, eyes resistanceReuters
Gold Advances in London as Weaker Dollar Spurs Investor DemandBusinessWeek
Gold Declines Modestly as Silver Edges Up, US Bullion Coins RiseCoinNews.net
Reuters UK –FXstreet.com
all 196 news articles »
BULLION MORNING – Gold regains strength on rising euro, buoyant crude oil
By Clara Denina, Correspondent firstname.lastname@example.org +44 (0)20 7929 6339 London 28/02/2012 – Gold regained some strength in European trading on Tuesday morning, buoyed by a stronger euro, while soaring oil prices also provided support amid …
Gold Prices Gain as Investors Eye European Cash InfusionTheStreet.com
Gold futures push to three-month highDaniels Trading
COMMODITIES-Oil's downturn hits gold, lifts copperReuters
BusinessWeek –Equities.com –Fyxnews
all 82 news articles »
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