Saturday, 28 July 2012
Friday 27Jul2012 - WOW! Queen Elizabeth, James Bond and Corgis's Monty, Willow & Holly.
British "Slumdog Millionaire" filmmaker Danny Boyle and director of the 2012 'Games of London' Summer Olympics Opening Ceremonies pulled another rabbit out of his talented hat of original ideas.
Somehow he convinced the 86 year old Queen Elizabeth of Britain to be picked up at Buckinghan Palace by James Bond and be parachuted into the Olympic Stadium to open the 2012 London Olympic Games. And to top it off the Queens Welsh Corgi dogs Monty, Willow and Holly escort the stars in the filming.
A couple of TV screen photos follow, but if interested try to watch the opening ceremonies starting at 1PM Vancouver time. The Buckingham Palace sequence starts about 1:25PM.
British "Slumdog Millionaire" filmmaker Danny Boyle and director of the 2012 'Games of London' Summer Olympics Opening Ceremonies pulled another rabbit out of his talented hat of original ideas.
Somehow he convinced the 86 year old Queen Elizabeth of Britain to be picked up at Buckinghan Palace by James Bond and be parachuted into the Olympic Stadium to open the 2012 London Olympic Games. And to top it off the Queens Welsh Corgi dogs Monty, Willow and Holly escort the stars in the filming.
A couple of TV screen photos follow, but if interested try to watch the opening ceremonies starting at 1PM Vancouver time. The Buckingham Palace sequence starts about 1:25PM.
Friday, 27 July 2012
Wednesday, 25 July 2012
Wednesday 25Jul2012 - Chart of the Day!
Lots of Questions?
Are Canadian banks share prices ready to head south in the current secular bear market?
Will Euro Zone countries ever find a lasting solution to their growing sovereign debt problems?
With many Eurpoean banks insolvent if they marked their sovereign debt to market, will a big bank go under?
By contagion, will the European debt problems spread to North America?
Will Bernanke and the US Federal Reserve introduce QE3 next week?
So many questions and No Answers!
The following Royal Bank chart from Venable Park Investment Counsel.
Click to enlarge.
Lots of Questions?
Are Canadian banks share prices ready to head south in the current secular bear market?
Will Euro Zone countries ever find a lasting solution to their growing sovereign debt problems?
With many Eurpoean banks insolvent if they marked their sovereign debt to market, will a big bank go under?
By contagion, will the European debt problems spread to North America?
Will Bernanke and the US Federal Reserve introduce QE3 next week?
So many questions and No Answers!
The following Royal Bank chart from Venable Park Investment Counsel.
Click to enlarge.
Tuesday, 24 July 2012
Tuesday 24Jul2012 - My 5 Cents Worth!
This is what happens to a country's stock markets when it enters a secular bear market. Now perhaps most of the worlds economies are entering multiyear secular bear markets.
The Japan Nikkei Index peaked at 40,000 in 1990 and has been trending lower ever since. Their central bank has basically lowered interest rates to near zero and flooded the system with sovereign debt now around 200% of GDP, and it has not helped one iota. Twenty-two years later there is no economic recovery in sight and the index is down 77% at 9217.
Italy along with most other European countries has now entered its multiyear secular bear market. Unfortunately its currency is the common eurozone currency the Euro. So it does not have its own central bank to print money like Japan and the USA and Canada, etc. Its stock market index is now down 72% from its 2008 peak.
Can the USA and Canadian stock markets be far behind with investors finally recognizing that Bernanke's helicopters creating billions of dollars out of thin air and throwing them into the financial systems are having less and less and less effect on trying to engineer an economic recovery.
Preservation of Capital is very important at this juncture; and CASH is a position. And as well now one can go long inverse ETFs that make money for you when equity markets decline and the Euro marches toward parity with the US dollar.
This is what happens to a country's stock markets when it enters a secular bear market. Now perhaps most of the worlds economies are entering multiyear secular bear markets.
The Japan Nikkei Index peaked at 40,000 in 1990 and has been trending lower ever since. Their central bank has basically lowered interest rates to near zero and flooded the system with sovereign debt now around 200% of GDP, and it has not helped one iota. Twenty-two years later there is no economic recovery in sight and the index is down 77% at 9217.
Preservation of Capital is very important at this juncture; and CASH is a position. And as well now one can go long inverse ETFs that make money for you when equity markets decline and the Euro marches toward parity with the US dollar.
Tuesday 24Jul2012 - Opinion that Matters!
Bill Moyers with a very thought provoking interview with Chris Hedges discussing his latest book "Days of Destruction, Days of Revolt."
Chris Hedges is a Pulitzer Prize-winning journalist who has reported from more than 50 countries. He spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans, including 15 years at The New York Times as a foreign correspondent and bureau chief. Hedges left the Times shortly after they issued him a formal reprimand for publicly denouncing the 2003 invasion of Iraq.
This is a 50 minute interview but I found it fascinating.
http://billmoyers.com/segment/chris-hedges-on-capitalism%E2%80%99s-%E2%80%98sacrifice-zones%E2%80%99/
Bill Moyers with a very thought provoking interview with Chris Hedges discussing his latest book "Days of Destruction, Days of Revolt."
Chris Hedges is a Pulitzer Prize-winning journalist who has reported from more than 50 countries. He spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans, including 15 years at The New York Times as a foreign correspondent and bureau chief. Hedges left the Times shortly after they issued him a formal reprimand for publicly denouncing the 2003 invasion of Iraq.
This is a 50 minute interview but I found it fascinating.
http://billmoyers.com/segment/chris-hedges-on-capitalism%E2%80%99s-%E2%80%98sacrifice-zones%E2%80%99/
Sunday, 22 July 2012
Sunday 22Jul2012 - What Next in the EuroZone?
Spain's 10 year soverign debt yield is once again above 7%.
And now it has just been reported that Sicily (population 5 million) which is becoming the Greece of Italy is at risk of defaulting on its high public debts.
This past Friday the Milan stock market dropped 5%.
And the Euro posted a new low vs the US dollar on Friday.
For those doing the "long US dollar-short the Euro trade" with EUO-NYSE; this coming week may provide the opportunity to take profits as the Euro approaches the bottom of its price channel.
The short term target is around the June 2011 low of 1.1876US$ per Euro.
The following US dollars per Euro chart from Fridays EWI Short Term Update.
Click to enlarge.
Spain's 10 year soverign debt yield is once again above 7%.
And now it has just been reported that Sicily (population 5 million) which is becoming the Greece of Italy is at risk of defaulting on its high public debts.
This past Friday the Milan stock market dropped 5%.
And the Euro posted a new low vs the US dollar on Friday.
For those doing the "long US dollar-short the Euro trade" with EUO-NYSE; this coming week may provide the opportunity to take profits as the Euro approaches the bottom of its price channel.
The short term target is around the June 2011 low of 1.1876US$ per Euro.
The following US dollars per Euro chart from Fridays EWI Short Term Update.
Click to enlarge.
Wednesday, 18 July 2012
Wednesday 18Jul2012 - Summer Home Repair Projects
Starting first thing this past Monday morning it was time to start a multi-day home renovation project to replace the house front porch rotting stairway. With my advancing middle age, it did occur that I might blow it; but saving $1000+ labor costs plus materials swayed my decision to meet the challenge.
So a couple of photos follow, showing a few of the project steps.
First, after taking some measurements and estimating needed materials, I paid a visit to Rona (crappy lumber), Home Depot (crappy lumber), and finally Dick's Lumber in Burnaby (a lot better lumber, but not as good as 20 years ago).
Then tearing apart the old stairs.
Then cutting three new stringers (the notched board that the new step boards are nailed to). Each stringer board cost is $25. Marking and cutting each one exactly the same is very important.
Positioning and fastening the stringers is also very important, so one does multiple checks to make certain they are aligned correctly before final attachment to the headboard.
Then cutting and nailing the new step boards to the stringers. The blue pail with the white lid is the temporary mailbox.
Starting first thing this past Monday morning it was time to start a multi-day home renovation project to replace the house front porch rotting stairway. With my advancing middle age, it did occur that I might blow it; but saving $1000+ labor costs plus materials swayed my decision to meet the challenge.
So a couple of photos follow, showing a few of the project steps.
First, after taking some measurements and estimating needed materials, I paid a visit to Rona (crappy lumber), Home Depot (crappy lumber), and finally Dick's Lumber in Burnaby (a lot better lumber, but not as good as 20 years ago).
Then tearing apart the old stairs.
Then cutting three new stringers (the notched board that the new step boards are nailed to). Each stringer board cost is $25. Marking and cutting each one exactly the same is very important.
Positioning and fastening the stringers is also very important, so one does multiple checks to make certain they are aligned correctly before final attachment to the headboard.
Then cutting and nailing the new step boards to the stringers. The blue pail with the white lid is the temporary mailbox.
Sunday, 15 July 2012
Sunday 15Jul2012 - Rita Hayworth and Stayin' Alive
Thanks Moe for the link.
This is a great piece of film editing with Rita Hayworth and other film stars dancing to the Bee Gees Stayin' Alive.
http://www.youtube.com/watch_popup?v=mz3CPzdCDws
Thanks Moe for the link.
This is a great piece of film editing with Rita Hayworth and other film stars dancing to the Bee Gees Stayin' Alive.
http://www.youtube.com/watch_popup?v=mz3CPzdCDws
Saturday, 14 July 2012
Saturday 14Jul2012 - Opinion That Matters! - A John Mauldin Excerpt
The following brief excerpt is from todays John Mauldin weekly newsletter. Regardless of what our political leaders and investment advisors tell us, everything is not copasetic (aka - hunky-dory).
"I have long made the case that we are in a secular bear market in the US (and much of the developed world). But that simply means that I think equities in general offer little upside potential at today's valuations. These periods run in very long cycles and to ignore them is simply, well, dumb. So we look for opportunities elsewhere than in index investing. What makes it particularly challenging today is that central banks are pushing interest rates down and forcing investors to work far harder for their returns. Simple bond investing will not give us the returns that most of us need for our retirement and desired lifestyles.
I prefer to think of myself as an optimistic realist. Rather than trying to force or vainly hoping for a return that is not there, I choose to look elsewhere. There are always opportunities somewhere. In preference to index investing, I look for specific targets. You might say that I prefer a rifle to a shotgun.
Of course, if your worldview is consumed by US equities, if you live and die by every move of the market, then I might seem like a bear to you. I would suggest that if that is the case, you might want to broaden your investment horizons.
What I am bearish on, however, is governments gone wild with ever-increasing taxes and spending, and especially governments that take on too much debt. When governments decide to spend today more than they can collect in taxes; when they borrow ever-greater amounts to live a national lifestyle that is beyond their means, obliging our children to pay in the future for our spending today to maintain that lifestyle; we know that there will eventually be a day of reckoning.
That day comes when the debt is growing faster than the economy. The final Bang! moment happens when the total interest on the debt overwhelms the nominal growth of the economy.
When that happens, whether to a family, a company, or a nation, either spending must be slashed or taxes raised (which will hurt overall growth), or there will be a default. There comes a moment when investors start to worry more about the return of their capital than the return on their capital. Rates begin to creep upward and the process turns into an ever-tightening spiral of rising taxes and falling spending (which we currently call austerity), which hampers the growth of the nation and makes it ever more difficult to escape the debt trap.
In the course of human experience we have watched this process unfold literally hundreds of times, yet we never seem to learn. Somehow, we always manage to tell ourselves that this time is different. Someone else can pay more taxes. We can grow our way out of the problem, just like we did the last time. Or we settle for the desperate, cynical belief that future generations will sacrifice their lifestyles so that we can get paid our unfunded pensions and health care."
The following brief excerpt is from todays John Mauldin weekly newsletter. Regardless of what our political leaders and investment advisors tell us, everything is not copasetic (aka - hunky-dory).
"I have long made the case that we are in a secular bear market in the US (and much of the developed world). But that simply means that I think equities in general offer little upside potential at today's valuations. These periods run in very long cycles and to ignore them is simply, well, dumb. So we look for opportunities elsewhere than in index investing. What makes it particularly challenging today is that central banks are pushing interest rates down and forcing investors to work far harder for their returns. Simple bond investing will not give us the returns that most of us need for our retirement and desired lifestyles.
I prefer to think of myself as an optimistic realist. Rather than trying to force or vainly hoping for a return that is not there, I choose to look elsewhere. There are always opportunities somewhere. In preference to index investing, I look for specific targets. You might say that I prefer a rifle to a shotgun.
Of course, if your worldview is consumed by US equities, if you live and die by every move of the market, then I might seem like a bear to you. I would suggest that if that is the case, you might want to broaden your investment horizons.
What I am bearish on, however, is governments gone wild with ever-increasing taxes and spending, and especially governments that take on too much debt. When governments decide to spend today more than they can collect in taxes; when they borrow ever-greater amounts to live a national lifestyle that is beyond their means, obliging our children to pay in the future for our spending today to maintain that lifestyle; we know that there will eventually be a day of reckoning.
That day comes when the debt is growing faster than the economy. The final Bang! moment happens when the total interest on the debt overwhelms the nominal growth of the economy.
When that happens, whether to a family, a company, or a nation, either spending must be slashed or taxes raised (which will hurt overall growth), or there will be a default. There comes a moment when investors start to worry more about the return of their capital than the return on their capital. Rates begin to creep upward and the process turns into an ever-tightening spiral of rising taxes and falling spending (which we currently call austerity), which hampers the growth of the nation and makes it ever more difficult to escape the debt trap.
In the course of human experience we have watched this process unfold literally hundreds of times, yet we never seem to learn. Somehow, we always manage to tell ourselves that this time is different. Someone else can pay more taxes. We can grow our way out of the problem, just like we did the last time. Or we settle for the desperate, cynical belief that future generations will sacrifice their lifestyles so that we can get paid our unfunded pensions and health care."
Friday, 13 July 2012
Friday the 13th of July 2012 - Yikes "Be Careful." And some Friday Humor!
The First Ever Blonde GUY Joke...
The First Ever Blonde GUY Joke...
An Irishman, a Mexican and a Blonde Guy were doing construction work on scaffolding on the 20th floor of a building.
They were eating lunch, and the Irishman said, "Corned beef and cabbage! If I get corned beef and cabbage one more time for lunch, I'm going to jump off this building."
The Mexican opened his lunch box and exclaimed, "Burritos again! If I get burritos one more time, I'm going to jump off, too."
The blonde opened his lunch and said, "Bologna again! If I get a bologna sandwich one more time, I'm jumping too."
The next day, the Irishman opened his lunch box, saw corned beef and cabbage, and jumped to his death.
The Mexican opened his lunch, saw a burrito, and jumped, too.
The blonde guy opened his lunch, saw the bologna and jumped to his death as well.
At the funeral, the Irishman's wife was weeping. She said, "If I'd known how really tired he was of corned beef and cabbage, I never would have given it to him again!"
The Mexican's wife also wept and said, "I could have given him tacos or enchiladas ! I didn't realize he hated burritos so much."
Everyone turned and stared at the blonde's wife.
The blonde's wife said, "Don't look at me. He makes his own lunch."
Wednesday, 11 July 2012
Wednesday 11Jul2012 - Sometimes the Best is Free! Enjoy!
Banco Sabadell of Spain celebrated their 130th anniversary with a flash mob orchestra. More than 100 people participated in the flash mob from Symphony Orchestra of the Valleys and choirs, Lieder and Amics of l’ Òpera and the Choir Belles Arts. Viewers are saying this flash mob is the most beautiful they have ever seen.
Imagine the surprise you would have while traveling in London, Rome, New York, Madrid or wherever and come into this impromtu celebration.
http://www.youtube.com/watch_popup?v=GBaHPND2QJg&vq=medium
Banco Sabadell of Spain celebrated their 130th anniversary with a flash mob orchestra. More than 100 people participated in the flash mob from Symphony Orchestra of the Valleys and choirs, Lieder and Amics of l’ Òpera and the Choir Belles Arts. Viewers are saying this flash mob is the most beautiful they have ever seen.
Imagine the surprise you would have while traveling in London, Rome, New York, Madrid or wherever and come into this impromtu celebration.
http://www.youtube.com/watch_popup?v=GBaHPND2QJg&vq=medium
Monday, 9 July 2012
Monday 09July2012 - Roubini On Bankers and a Perfect Storm in 2013
New York University Professor Nouriel Roubini discusses “greedy” bankers, the euro-zone crisis and risks facing the global economy in 2013. At the following Bloomberg web link.
http://www.bloomberg.com/video/roubini-says-2013-storm-may-surpass-2008-crisis-HCAjTp9VTD~gm6Ux8jnQvQ.html
New York University Professor Nouriel Roubini discusses “greedy” bankers, the euro-zone crisis and risks facing the global economy in 2013. At the following Bloomberg web link.
http://www.bloomberg.com/video/roubini-says-2013-storm-may-surpass-2008-crisis-HCAjTp9VTD~gm6Ux8jnQvQ.html
Saturday, 7 July 2012
Saturday 2012-07-07 - Currency Market Action!
It looks like the Euro has started its next leg down vs the US dollar. Friday close was 1.229US/Euro.
EWI target for this minor 5 wave sequence is 1.187 to 1.196US/Euro. Also in the following chart this target would bring it close to the bottom of the channel.
For those of you who are doing this trade with the ETF EUO-NYSE its target prices are $23.32 to $23.99 The theuptrend.com charting service next weekly target is $23.44. I think if the target area is hit it would be a good time to take $6/share profit off the table keeping sales in US dollars. Cash is a Position.
Want a higher risk trade? How about a double short on oil?
The following US$/Euro chart from EWI 06Jul2012 Financial Forecast Short Term Update.
It looks like the Euro has started its next leg down vs the US dollar. Friday close was 1.229US/Euro.
EWI target for this minor 5 wave sequence is 1.187 to 1.196US/Euro. Also in the following chart this target would bring it close to the bottom of the channel.
For those of you who are doing this trade with the ETF EUO-NYSE its target prices are $23.32 to $23.99 The theuptrend.com charting service next weekly target is $23.44. I think if the target area is hit it would be a good time to take $6/share profit off the table keeping sales in US dollars. Cash is a Position.
Want a higher risk trade? How about a double short on oil?
The following US$/Euro chart from EWI 06Jul2012 Financial Forecast Short Term Update.
Thursday, 5 July 2012
05Jul2012 - The Smartest Man is a Firedancer!
Quote from the following Blackstone Capital Commentary by Byron Wien.
"For years I’ve been telling you that the accumulation of debt was going to be the ending of the developed world and for years you have been telling me my views are too extreme. The problem is you are an optimist and I am a realist. You go around with a smile on your face thinking that there are serious problems facing us, but that everything will turn out favorably because the policy makers will do what they have to do to avoid disaster, and so far you have been right. The developed economies and their stock markets have plodded along and investors haven’t made or lost much money in spite of the challenges. At a certain point, however, the temporary measures that the policy makers put in place to avoid financial catastrophe prove insufficient and that’s where we are now."
Link to the Byron Wien's full article.
http://www.blackstone.com/news-views/market-commentary/blog-detail/byron%27s-market-commentary/2012/07/02/the-smartest-man-is-a-firedancer
Quote from the following Blackstone Capital Commentary by Byron Wien.
"For years I’ve been telling you that the accumulation of debt was going to be the ending of the developed world and for years you have been telling me my views are too extreme. The problem is you are an optimist and I am a realist. You go around with a smile on your face thinking that there are serious problems facing us, but that everything will turn out favorably because the policy makers will do what they have to do to avoid disaster, and so far you have been right. The developed economies and their stock markets have plodded along and investors haven’t made or lost much money in spite of the challenges. At a certain point, however, the temporary measures that the policy makers put in place to avoid financial catastrophe prove insufficient and that’s where we are now."
Link to the Byron Wien's full article.
http://www.blackstone.com/news-views/market-commentary/blog-detail/byron%27s-market-commentary/2012/07/02/the-smartest-man-is-a-firedancer
Wednesday, 4 July 2012
Wednesday 04July2012 - Birthday Greetings
Wishing our US of A friends and neighbors a Super 236th Birthday.
We Canadians still refer to our southern neighbor as Uncle Sam.
The origin of the Uncle Sam nickname from Wikipedia.
On this day in 1813, the United States gets its nickname, Uncle Sam. The name is linked to Samuel Wilson, a meat packer from Troy, New York, who supplied barrels of beef to the United States Army during the War of 1812. Wilson (1766-1854) stamped the barrels with "U.S." for United States, but soldiers began referring to the grub as "Uncle Sam's." The local newspaper picked up on the story and Uncle Sam eventually gained widespread acceptance as the nickname for the U.S. federal government.
Wishing our US of A friends and neighbors a Super 236th Birthday.
We Canadians still refer to our southern neighbor as Uncle Sam.
The origin of the Uncle Sam nickname from Wikipedia.
On this day in 1813, the United States gets its nickname, Uncle Sam. The name is linked to Samuel Wilson, a meat packer from Troy, New York, who supplied barrels of beef to the United States Army during the War of 1812. Wilson (1766-1854) stamped the barrels with "U.S." for United States, but soldiers began referring to the grub as "Uncle Sam's." The local newspaper picked up on the story and Uncle Sam eventually gained widespread acceptance as the nickname for the U.S. federal government.
Wednesday 04Jul2012 - Just the Facts!
Everyday we are bombarded with news regarding the ongoing saga of the European debt crisis. It pushes the rapidly growing US government debt problem into the background. The following chart would seem to indicate that the US may soon be facing the same problem. Considering that US government is growing by 1 to 1.5 trillion dollars a year.
Everyday we are bombarded with news regarding the ongoing saga of the European debt crisis. It pushes the rapidly growing US government debt problem into the background. The following chart would seem to indicate that the US may soon be facing the same problem. Considering that US government is growing by 1 to 1.5 trillion dollars a year.
Sunday, 1 July 2012
01July2012 - Wishing You a Very Happy Canada Day
Today we celebrate Canada's 145th Birthday. Canada gave birth on the 1st of July 1867 by the Constitution Act of 1867 which united 3 British colonies (New Brunswick, Nova Scotia and Province of Canada) into a single entity called The Dominion of Canada within the British Empire. The Province of Canada colony was divided into Ontario and Quebec.
British Columbia joined the Confederation of Canada on the 20th of July 1871.
I am proud to be a Canadian and I hope you are too. And yes, British Columbia is God's country.
To our American friends, we will definitely be celebrating your 4th of July Birthday as well.
Today we celebrate Canada's 145th Birthday. Canada gave birth on the 1st of July 1867 by the Constitution Act of 1867 which united 3 British colonies (New Brunswick, Nova Scotia and Province of Canada) into a single entity called The Dominion of Canada within the British Empire. The Province of Canada colony was divided into Ontario and Quebec.
British Columbia joined the Confederation of Canada on the 20th of July 1871.
I am proud to be a Canadian and I hope you are too. And yes, British Columbia is God's country.
To our American friends, we will definitely be celebrating your 4th of July Birthday as well.
Friday 29June2012 Market Action Comments
Friday's stock market euphoria will most likely be very short lived.
Nothing has changed.
Economic Growth through Financial Engineering has reached its end.
People have to STOP Spending Money They do NOT HAVE.
The following comment by Danielle Park.
Hope floats on more debt
Risk markets are roaring out of the bell this morning, on the next wave of nonsensical hype that today’s 20th EU summit has solved European insolvency. More debt and even more debt will not work. Most repugnant is the agreement once again to further subjugate European taxpayers as their political representatives agree that bond holders will continue to enjoy preferred-creditor status on crisis loans ahead of taxpayers. If there is any doubt as to who these politicians see as their true constituents, this agreement further reminds us–it’s the banks, not “we the people”.
This is another in a long line of efforts to save banks ahead of the real economy as taxpayers are thrown further and further under the bus. And that recession that is now underway around the world? More debt and more cuts to the real economy to support fake balance sheet values in banks will only extend and deepen our global downturn. Tomorrow we suffer more, but today apparently, we dance.
And a link to Jim Rogers interview on CNBC
http://video.cnbc.com/gallery/?video=3000099838
Friday's stock market euphoria will most likely be very short lived.
Nothing has changed.
Economic Growth through Financial Engineering has reached its end.
People have to STOP Spending Money They do NOT HAVE.
The following comment by Danielle Park.
Hope floats on more debt
This is another in a long line of efforts to save banks ahead of the real economy as taxpayers are thrown further and further under the bus. And that recession that is now underway around the world? More debt and more cuts to the real economy to support fake balance sheet values in banks will only extend and deepen our global downturn. Tomorrow we suffer more, but today apparently, we dance.
And a link to Jim Rogers interview on CNBC
http://video.cnbc.com/gallery/?video=3000099838
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