Latest Posts
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Trump Just Imposed A New Tax On Lumber
There are a lot of news reports today about Trump’s decision to impose stiff tariffs on American companies (home builders) who buy Canadian lumber, here is a sample: “Trump slaps first tariffs on Canadian lumber,” “Tariff on Canadian lumber sends a stern message,” “Trump Administration To Impose 20 Percent Tariff On Canadian Lumber,” and “Trump slaps duty on lumber from Canada.” In each case, those news reports miss a few very critical points: a) Canadian lumber doesn’t pay the tariff, b) Canadian lumber companies won’t pay the tariff, and c) American lumber-buying companies (mostly home builders) will pay the tariff, wh... -
Finance 0
The Euro Is Stronger Than You Think
from Daily Reckoning by James Rickard The euro is the currency of the largest economy in the world, but it gets little respect. The break-up of the Eurozone (those EU countries that use the euro as their currency), and the collapse of the euro have been predicted repeatedly since 2009 by prominent U.S. economists Paul Krugman, Joe Stiglitz, (Krugman and Stiglitz are both winners of the Nobel Prize), Nouriel Roubini, and others, as well as European public intellectuals such as Anatole Kaletsky, Howard Davies, and many lesser lights. I’ve been on the other side of that debate the entire time. My view is the euro is here to stay, and will gr... -
Finance 0
EC IEP Offers A 12% Yield And Trades At A Four-Year Low, But Is It Safe?
One investing school of thought is that you should find an amazing investor and ride his or her coat tails to fun and profit. This certainly worked out well for those who bet on history’s greatest investor, Warren Buffett, by investing in Berkshire Hathaway (BRK-A, BRK-B). You can view Buffett’s high dividend stock portfolio here. After all, if you invested $10,000 in Berkshire in 1965, your position would be worth a staggering $88 million today. Of course, the odds that Buffett can recreate that kind of success in the coming years is all but impossible due to the massive size of Berkshire; something he himself freely admits. However, ... -
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Buying American, Losing America
Recently, President Trump traveled to Wisconsin to sign the “Buy American, Hire American” executive order, which seeks to crack down on fraud and abuse of the skilled worker (H-1B) visa program. Then, he traveled to Kenosha, Wisconsin, to sign the second part of the order, which calls for US government agencies to give preference to domestically produced products and for a 220-day study of US trade agreements that grant foreign companies the right to be treated as domestic companies. Source The ceremony took place at the headquarters of Snap-on, a tool company. With applause from its employees, Trump said that his executive order would ... -
Finance 0
Delaying The Fiduciary Rule = A Dumb Move
As you may have heard, the fiduciary rule that was scheduled to be established by the Department of Labor (DOL) on April 10th of this year, has been delayed out by a month or two after all. A few weeks ago, I discussed the basics of the rule and why it is so important for the investing community to pass this rule. Unfortunately, the Congressional body in charge did not agree that the rule was necessary to be passed, and quite frankly, this was a dumb move on their part. The rule is now scheduled to go into effect on June 9, which is supposed to allow the DOL to re-evaluate the rule per amemorandum from President Trump. He directed the DOL... -
Finance 0
ECB Preview: Seeing The Glass Half Full? 3 Scenarios
The European Central Bank is not expected to change its policy at the April 2017 meeting. Nevertheless, the ECB always moves markets and this event will not be different. The key is the tone in Mario Draghi’s press conference. And the main yet unspoken driver of optimism is the result in the first round of the French elections. Dovish Draghi or some spring happiness? Here is the preview with three scenarios. ECB Background Back in the March meeting, the Frankfurt-based institution removed an important clause from the statement. They omitted the phrase “use all instruments” regarding battling deflation. Draghi then clarified that ther... -
Finance 0
ECB Preview: Seeing The Glass Half Full? 3 Scenarios
The European Central Bank is not expected to change its policy at the April 2017 meeting. Nevertheless, the ECB always moves markets and this event will not be different. The key is the tone in Mario Draghi’s press conference. And the main yet unspoken driver of optimism is the result in the first round of the French elections. Dovish Draghi or some spring happiness? Here is the preview with three scenarios. ECB Background Back in the March meeting, the Frankfurt-based institution removed an important clause from the statement. They omitted the phrase “use all instruments” regarding battling deflation. Draghi then clarified that ther... -
Finance 0
Gold Prices Drop As Markets Set Sights On Trump Tax Plan
Gold prices sank as firming risk appetite sapped haven demand for Treasury bonds and drove yields higher. Investors’ chipper mood also echoed into US monetary policy expectations, with the 2017 rate hike path implied in Fed Funds futures now at its steepest in three weeks. Not surprisingly, this proved damaging for non-interest-bearing assets. The Euro marched higher alongside US share prices and bond yields as the yellow metal sank, hinting that the markets’ optimism continued to reflect outcome of the first round of France’s presidential election. The spotlight will move across the Atlantic in the day ahead as the “Trump trade”... -
Finance 0
Precious Metals Technical Outlook: Gold & Silver Retracement Underway
As noted in our previous report last week, we warned that Gold and Silver are very close to sparking a correction to the downside, after few weeks of significant gains. Gold and Silver posted a new high for this year, reaching the highest level since October of last year, and tested major resistance areas, which showed some selling pressure ahead of the weekend. The retracement began by the end of last week and accelerated right after the results of the first round of the French election. As the retracement is underway, we take a look at the key support areas, where buyers are likely to appear, and when could be the right time to start buying... -
Finance 0
Indian Indices Trade Near Record Highs; Auto Stocks Lead Gains
After opening the day on a positive note, share markets in India have continued the momentum and are trading near their record high levels. Sectoral indices are trading on a mixed note, with stocks in the auto sector and the FMCG sector witnessing maximum buying interest. Stocks in the IT and the telecom sector are trading in the red. The BSE Sensex is trading up by 155 points (up 0.5%), and the NSE Nifty is trading up by 43 points (up 0.5%). Meanwhile, the BSE Mid Cap index is trading up by 0.2%, while the BSE Small Cap index is trading up by 0.1%. The rupee is trading at 64.07 to the US$. In news from stocks in the bankin...
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