Month: April 2013

By CountingPips.com

The latest weekly Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that large futures traders raised their total bullish bets of the US dollar last week and brought positions to a new high level since July 2012, according to Reuters.

Non-commercial large futures traders, including hedge funds and large International Monetary Market speculators, registered an overall US dollar long position of $26.3 billion as of Tuesday April 2nd. This was an advance from the total long position of $24.8 billion on March 26th, according to position calculations by Reuters (US dollar positions against the total positions of eurofx, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc).

Individual Currencies Large Speculators Positions in Futures:

The individual currency contracts quoted directly against the US dollar last week saw increases for the British pound sterling, Japanese yen, Swiss franc, New Zealand dollar and the Mexican peso while the euro, Australian dollar and the Canadian dollar all had a declining number of net contracts for the week.

Individual Currency Charts:

EuroFX: Weekly change of -16,606

EuroFX: Large trader positions for the euro fell last week for a third straight week. Euro contracts declined to a total net position of -65,701 contracts in the data reported for April 2nd following the previous week’s total of -49,095 net contracts on March 26th. This is a change of -16,606 contracts from the previous week.

Euro positions are at a new low level for 2013 and the lowest standing since November 27 2012 when positions stood at -66,693 contracts.

British Pound Sterling: Weekly change of +1,535

GBP: British pound spec positions halted their decline of ten consecutive weeks last week as positions increased slightly. British pound speculative positions edged up last week to a total of -65,020 net contracts on April 2nd following a total of -66,555 net contracts reported for March 26th. This was a weekly change of +1535 in large trader contracts.

Pound speculator positions have been in a bearish position for eight consecutive weeks since crossing over on February 5th.

Japanese Yen: Weekly change of +10,978

JPY: Japanese yen net speculative contracts rose last week after declining the previous week. Japanese yen positions increased to a total of -78,171 net contracts on April 2nd following a total of -89,149 net short contracts on March 26th. This is a weekly change of +10,978 positions.

Swiss Franc: Weekly change of +183

CHF: Swiss franc speculator positions edged up slightly last week after falling for five out of last six weeks. Net positions for the Swiss currency futures rose slightly to a total of -12,015 contracts on April 2nd following a total of -12,198 net contracts reported for March 26th. This is a weekly change of +183 contracts.

Canadian Dollar: Weekly change of -1,899

CAD: Canadian dollar positions decreased slightly last week after ending a streak of nine consecutive weeks of decline the previous week. Canadian dollar positions fell to a total of -64,544 contracts as of April 2nd following a total of -62,645 net contracts that were reported for March 26th.

This is a weekly change of -1,899 net contracts following a weekly change of +2,686 the previous week.

Australian Dollar: Weekly change of -1,544

AUD: The Australian dollar fell slightly last week after rising sharply for three consecutive weeks. Aussie speculative futures positions decreased to a total net amount of +83,971 contracts on April 2nd after totaling +85,515 net contracts as of March 26th. This is a weekly change of -1544 in net positions following the previous week’s +31,460 change.

Australian dollar contracts, two weeks ago, were at their highest level since January 22, 2013 when positions equaled +97,011 contracts.

New Zealand Dollar: Weekly change of +1,471

NZD: New Zealand dollar speculator positions advanced last week for a second consecutive week. NZD contracts rose to a total of +18,387 net long contracts as of April 2nd following a total of +16,916 net long contracts on March 26th. This constitutes a weekly change of +1,471 following the previous week’s change of +4,439 net contracts.

Mexican Peso: Weekly change of +14,593

MXN: Mexican peso speculative contracts rose last week for a second consecutive week. Peso positions increased to a total of +142,755 net speculative positions as of April 2nd following a total of +128,162 contracts that were reported for March 26th. This is a weekly change in net large peso speculator positions of +14,593 contracts following the previous change of +18,786 contracts.

Peso speculative positions have been over the +100,000 threshold for four straight weeks after falling under this level on March 5th for the first time since November 27th 2012.

Additional Macro Financial Markets:

10 Year Treasuries: Weekly change of +12,502

10 Year Notes: 10-Year Treasury Note speculative contracts moved higher last week to increase for a third consecutive week. 10-Year positions rose to a total of +110,692 net speculative positions as of April 2nd following a total of +98,190 contracts that were reported for March 26th. This is a weekly change in net large speculator positions of +12,502 contracts following the previous week’s change of +101,485 contracts.

10-Year Treasury speculative positions are at their highest level since February 26th when positions equaled +115,908 contracts.

Crude Oil Light Sweet: Weekly change of +4,243

Crude Oil: Crude Oil speculative contracts increased last week for a second straight week. Crude spec positions rose to a total of +248,850 net speculative positions as of March 26th following a total of +244,607 contracts that were reported for March 26th. This is a weekly change in net large speculator positions of +4,243 contracts.

Crude Oil speculative positions are at their highest level since February 19th when positions reached +257,918 contracts.

Gold Futures CMX: Weekly change of -12,240

Gold: Gold speculative contracts declined last week to fall for a second straight week. Gold futures positions declined to a total of +120,206 net speculative positions as of April 2nd following a total of +132,446 contracts that were reported for March 26th. This is a weekly change in net large speculator positions of -12,240 contracts.

Gold speculative positions have been on a steady decline since reaching an apex on October 9th 2012 at +211,949 contracts.

S&P 500 Index Futures: Weekly change of +161

S&P 500: S&P 500 speculative contracts edged higher last week after falling for two weeks in a row. S&P 500 futures positions rose to a total of +4,532 net speculative positions as of April 2nd following a total of +4,371 contracts that were reported for March 26th. This is a weekly change in net large speculator positions of +161 contracts.

VIX Futures: Weekly change of -4,690

VIX: VIX speculative contracts decreased last week after reaching the highest level (or lowest short level) since August 2012 on the previous week. VIX futures positions fell to a total of -68,273 net speculative positions as of April 2nd following a total of -63,583 contracts that were reported for March 26th. This is a weekly change in net large speculator positions of -4,690 contracts.

The Commitment of Traders report is published every Friday by the Commodity Futures Trading Commission (CFTC) and shows futures positions data that was reported as of the previous Tuesday (3 days behind).

Each currency contract is a quote for that currency directly against the U.S. dollar, a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and a net long position expect that currency to rise versus the dollar.

(The graphs overlay the forex spot closing price of each Tuesday when COT trader positions are reported for each corresponding spot currency pair.)

See more information and explanation on the weekly COT report from the CFTC website.

Article by CountingPips.com – Forex News & Market Analysis

By Investment U

In focus this week; the Middle East is hot, owning your own toll road for income and the SITFA.

The Gulf Cooperation Council (GCC): Saudi Arabia, Qatar, Oman, Kuwait, the United Arab Emirates, and Bahrain are very hot! Literally and figuratively!

I know, all of the news in the Middle East seems to be bad, but these six are the stable element of that part of the world, and they are really on fire.

Barron’s reported this week that Dubai is up 13.7% this year, Abu Dhabi 14.7%, Saudi Arabia 6% and Qatar 3%, while the emerging market index is down 2.1%.

All of these countries boast strong government spending, very low to no debt and huge oil revenues. That’s a nice combination.

They are almost doubling the US’s growth rate, they hold somewhere in the area $1.5 trillion in their sovereign funds and Julie Dickson, of Ashmore Investment Management in London says they have the most stable and best capitalized banks in the world.

And, these economies are underpinned by petro dollars that are immune to inflation and just about anything else. The GCC’s average dividend yield is 4%, versus 2.7% here at home and this all adds up to solid growth prospects.

The problem, you know there had to be a catch, right? These markets are closed to individual investors, but you can get in using mutual funds.

The Barron’s article mentioned  two funds, Franklin Templeton Frontier markets, TFMAX has 30% of their assets in the Middle East, and T. Rowe Price Africa and Middle East Fund, TRAMX with 35% in the region.

The few existing ETF’s are very small, only $15 million in assets in the Wisdom Tree Middle East Dividend Fund (Nasdaq: GULF).  But it has 63% of that $15 million in the UAE and Qatar. If you are in the mood for some risk this could be interesting.

Take a look at the Middle East, the GCC specifically…

The Next Hot Income Investment: Toll Roads?

Next up, in an income starved world, how about a nice toll road of your very own. Think of all the quarters…

The Wall Street Journal reported recently that uber wealthy families are buying into infrastructure projects more so than traditional investments.

Most are in the developing world but some are here at home.

Since the 2008 collapse, the trend for this type of extremely wealthy investors is to own things you can hold, walk on or see; gold, art, wine, and now, toll roads, water projects and docks.

In San Francisco, there is a six-lane toll expressway between the city and the Golden Gate Bridge that will likely be funded by private investors. There’s a $220 million dollar energy project in Chicago and docks and piers projects in Djibouti that will all be funded by private money.

According to The Journal, since the whooping everyone took in 2008 the ultra-wealthy aren’t interested in hedge funds or traditional securities but are looking into long-term projects that can create income and return principal, and at the same time, gain exposure to emerging markets.

The emerging world is in desperate need of infrastructure development and these long term investments can be very lucrative, but require very deep pockets.

One U.S. family is eight years into a multi-country water project that has yet to pay a one cent in income.

Now, I know most of our members are not in this income or risk category, but if this proves to as profitable as the numbers now indicate, an ETF or mutual fund of some sort that will allow the small investor to get into the action can’t be far behind.

India alone is so badly in need of roads projects that their estimated time to ship an item is two to four times longer than in the United States because they can’t get products to the docks and then can’t get them out of the port. Much of the rest of the EM’s are in the same boat.

This will be a huge opportunity at some point in the future and the incredible amount of capital mutual funds can generate would be the perfect solution for many of these emerging market infrastructure needs.

Keep your ear to the ground about this one. It will take some time, but in the early stages this could be a very promising new growth and income play! Infrastructure!

Slap-in-the-Face Award: ‘It’s Complicated’ Edition

And finally, the sitfa

This week it goes to all those people out there who have made our lives so incredibly complex. Here’s how crazy our lives have gotten.

Did you know that in 1980 there was an average of 400 words in a credit card agreement? Today there are 20,000, it takes 90 minutes to read 20,000 words.

There are 45 different Medicare options to choose from.

There are 800,000 apps to choose from for the IPhone.

240 choices on the Cheesecake factory’s menu

On one website alone there are 135 mascara’s, 1,992 fragrances and 437 different lotions to choose from. Are you kidding me?

According to the Southern Medical Journal, a dermatologist has to sign his name 30,000 times a year.

And how about those incredibly long click-through agreements on line. No one reads them. In fact, one company had a $1,000 prize listed in the last few paragraphs of one of them. It took 3,000 sales before anyone read it and sent in for the prize.

The average supermarket has 40,000 different items to choose from. Do we really need as many different cereals as there are? One whole aisle at my food store has nothing but cereal.

But fear not, Trader Joes, the specialty food store, is leading the way to a simpler life. They only have 4,000 items in a store and their sales double larger specialty food stores with virtually unlimited choices.

Trader Joes says trying to be everything to everyone is a stupid business plan.

How did we get to this point of every business being everything to everyone and being so complex? According to The Journal; the internet, lawyers, government regulations and frivolous lawsuits.

Sure blame the lawyers, again. They’re easy! Lol

Good Investing,

Steve

P.S. If you’re interested in income investments, you’ll want to see this!

It’s a project I’ve been working on with our resident dividend investing expert Marc Lichtenfeld. I’ve written a lot over the past two years about the catastrophe that we’re headed for in the bond market. It’s the exact reason I recommend a staggered portfolio of short-maturity bonds.

But bond investors won’t be the only ones affected. This will also affect people that don’t realize they have any exposure to bonds. And when the tipping point occurs, it could wipe out retirement portfolios within minutes.

But those who are prepared for what’s coming won’t only protect themselves, they stand to generate serious wealth. We’re talking up to a one-time 164% windfall and thousands of dollars in extra income each month.

“If you’re serious about investing, you deserve to know what’s coming,” says Marc.

For our full report, click here.

Article By Investment U

Original Article: The Next Hot Income Investment: Toll Roads?

By www.CentralBankNews.info
    Three new chapters in the history of monetary policy were opened this week, showing that central bankers remain fearless, creative and willing to take bold steps to revive economic growth.
    The main example was the Bank of Japan’s embrace of large-scale asset purchases as a way to banish deflation.
    However, the Central Bank of Hungary’s effort to directly aid small businesses was also indicative of a willingness to think outside the box just as the Central Bank of Barbados showed a lack of dogmatic thinking by questioning its ability to control inflation through interest rates.
    It also became clear this week that the European Central Bank (ECB) is likely to join the growing list of banks that are employing new and creative policies to solve the issue of how to channel funds to private businesses when the banking system is ailing.
    At the core of these new policies is the lasting damage from the Global Financial Crises. The banking system, the traditional conduit between central banks and private businesses, is traumatized, saddled with debt and too little capital, reticent to lend to new business ventures.
    ECB President Mario Draghi said this week he was considering various instruments and tools to stimulate growth, including those used by central banks abroad, and was ready to act.
    Though the multinational structure of the ECB makes it less agile than other central banks, Draghi’s statement last July that the ECB was “ready to do whatever it takes to preserve the euro” showed the same boldness and fearlessness that the BOJ’s new governor displayed this week.

    The BOJ surprised on two fronts: The massive size of its asset purchases and the radical shift in its policy framework.
    Over the next two years, the BOJ aims to purchase some 130 trillion yen of assets (US$1.33 trillion) including government bonds, exchange-traded-funds (ETFs) and real estate investment trusts (REITs), expanding its balance sheet to 290 trillion yen ($2.97 trillion) from 158 trillion at the end of 2012.
    On a monthly basis, the BOJ plans to buy some 7 trillion yen ($72 billion) of mainly longer-term Japanese government bonds, which means it will be buying some 70 percent of new debt issued.
    To put that into perspective, the U.S. Federal Reserve has bought some $2.5 trillion in mortgage and Treasuries over the last five years and is currently purchasing assets worth $85 billion a month. The Fed’s balance sheet is currently $3.2 trillion.
    However, the U.S. economy is three times the size of the Japanese economy.
    The other novel aspect of the BOJ’s “new phase of monetary easing both in terms of quantity and quality” was the change in its operational target.
    Instead of focusing on the overnight call rate, it will now focus on the monetary base, a measure that includes coins and notes in circulation and banks’ reserves at the BOJ.
    The call rate has been largely symbolic since December 2008 when it was cut to 0.10 percent. In October 2010 it was then trimmed to between zero and 0.10 percent and now the BOJ is drawing the ultimate consequence of an impaired interest rate channel and scrapping it altogether.
    It remains to be seen whether other central banks, notably the Bank of England, which has held rates at effectively zero for five years, will draw inspiration from the BOJ.
    The BOE, which left rates and asset purchase targets unchanged this week, is currently considering introducing economic thresholds as part of its framework and may go even further once its new governor, Mark Carney, takes over in June.
 
   Last week seven central banks took policy decisions with six banks (Australia, Russia, Thailand, Uganda, the United Kingdom and the euro area) keeping rates on hold.
    Although Japan is no longer targeting the uncollateralized overnight call rate but rater the monetary base, it is being counted as having cut rates to zero from the previous 0-0.10 percent in order to capture its decision to ease its policy stance.
    Through the first 14 weeks of the year, 77 percent of the 133 policy decisions taken by the 90 central banks followed by Central Bank News lead to unchanged rates, the same ratio as after the first 13 weeks.
    Globally, 20 percent of policy decisions this year have lead to rate cuts – largely by central banks in emerging economies and now Japan as the first central bank in developed markets – up from 19.0 percent last week.
    Of the 26 rate cuts worldwide so far this year, 38 percent have come from central banks in emerging markets, down from 42 percent last week.

LAST WEEK’S (WEEK 15) MONETARY POLICY DECISIONS:

 
    NEXT WEEK (week 15) features six central bank policy decisions, including Sri Lanka’s tentatively scheduled meeting, Barbados’ first quarter review, and meetings by Poland, South Korea, Indonesia, Serbia, Peru, Chile and Singapore.

    www.CentralBankNews.info

By Justice Litle

If there were ever an occasion to “back up the truck” and buy gold stocks, it is NOW.

As legendary commodity analyst Don Coxe observed, “The greatest
investment opportunity comes from an asset class where those who know it
best love it least.”

This applies to gold stocks, which have been falling in the last 16 months for the following reasons:

1. Perception of a housing-led US recovery
2. Perception of crisis containment in Europe
3. Perception of subdued or repressed inflation
4. Poor management of gold mining companies
5. Competition from US equities.

This spells a major opportunity. Because each of these five
factors is now not only “priced in,” but also in the process of
reversing.

First, positive news on the housing front has led to strengthened belief in a US economic recovery.

The problem is we are headed toward not just a housing recovery, but a new and dangerous housing bubble — engineered by the Fed and large private equity firms.

And once the market gets a whiff of the inflationary and disruptive
implications of this bubble, perceptions toward gold with shift
dramatically.

Second, the perception of crisis containment in Europe has been a major weight on gold and gold stocks.

In 2012, Mario Draghi unleashed a deluge of optimism by saying the
ECB was ready to do “whatever it takes” to save the euro. This calmed
markets with the illusion of stability.

But events in Italy and Cyprus
will shatter that illusion. The turmoil of Italian elections and the
horrible mismanagement of the Cyprus bailout are both major
foreshadowing events for what awaits the euro zone.

Third, it is widely believed that inflation has been tamed — naturally bearish for gold and gold stocks.

The main official measure the Fed watches, CPI-U, has not been
registering increasing inflation pressure. But this will remain the
case only as long as monetary velocity — which measures how fast money
moves through the system — and bank lending remain subdued.

And that is not likely to remain the case. Because either perception
of US economic recovery will persist and cause a pickup in spending
and bank lending (and, therefore, inflation). Or fear of the Fed
overshooting on its policy near-zero interest rates and debt
monetization will ignite a 1970s mentality of “spend it now” ahead of
big price rises.

Fourth, gold stock valuations have been greatly compressed by gross misuse of cash flow.

Gold mining companies have long been known for their terrible
management — everything from badly judged acquisitions of new mines…
to botched hedging strategies that wipe out positive exposure to the
gold price… to paying nosebleed prices for takeovers of competitors.

But even the hardheaded management teams can learn. And pessimism
has driven valuations to rock-bottom levels, even as managements have
promised to go to the equivalent of Alcoholics Anonymous — call it
“Acquirers Anonymous” — to stop throwing money away on bad projects.

Fifth, gold stocks have suffered on a relative basis as
institutional capital piled into more conventional areas of the US
equity market. Health care, retail and housing-related stocks have done
exceptionally well in the past months… again, based on perceptions
of US recovery.

But now those areas of the market are overbought and overvalued, as gold stocks scream value and bargain-basement prices.

It is rare to see so many macro factors converge like this in favor
of one area of the market. I recommend you “back up the truck” now
ahead of gold miners’ big move higher.

You can add exposure to gold miners through the Market Vectors Gold Miners ETF (NYSE:GDX).

Carpe Divitiae,

Justice

P.S. I am in the process of putting together an emergency special report for Strategic Wealth Report readers detailing the ONE blue-chip gold stock you should play right now…

If you would like to receive this special report — along with a
recommendation as to how to play it via long-term options — keep your
eyes on your inbox next Monday morning. Because, as a loyal Inside Investing Daily reader, you’re entitled to a complimentary copy. So keep your eye on these pages…

By MoneyMorning.com.au

The to and fro of the markets is noise, or operational noise in military terms. What’s the strategy? And what’s at stake?

Well, despite a shocking few days in the Aussie share market, there are plenty of growth trends in the world. But Australian oil refining is obviously not one of them. Royal Dutch Shell let everybody know that this week.

Australia is rapidly losing the ability to produce its own refined fuels. That means higher imports and a larger trade deficit.

On the other hand, there are other opportunities in energy in Australia. One comes down to a few key firms in the Cooper Basin and a few key drilling results, the most important of which is due out in the next 30 days.

It’s all part of the dynamic energy landscape. Energy, especially oil and gas, has been the key industry of the last 100 years. That’s unlikely to change anytime soon.

Opportunity in the Old as Well as the New

Technology will fuel future growth. But the world still runs on energy that has to be extracted, refined and used. It’s certainly extracted in Australia. But will it continue to be refined here?

It probably surprised no one when Royal Dutch Shell announced this week that it wants to sell its refinery down in Geelong, Victoria. The company says it hopes to find a willing buyer that will continue running the site. Those odds don’t look great to your editor. In January, the government released a report on Australia’s oil refining industry.

In short: it’s not pretty. Here’s a snippet: ‘The domestic context of high operating costs, ageing facilities, increasing sea miles for the transport of crude to the refineries, shallow berths that are not suitable for large crude carriers, increasing technical complexity needed for refining of the broad range of crude oil and the high Australian dollar, put Australia at a competitive disadvantage.’

To be clear, Australia is not a big player in this industry. Our refineries are small by current world standards. Here’s a snapshot of Australian refining capability as of 2011. We couldn’t find an updated map.

Don’t forget to count out the Clyde, Kurnell and Geelong sites. By mid-2015, Australia will be down to four. So, is Australia leaving a gaping hole in its energy security? Would Sun Tzu be turning in his grave?

According to the Australian Institute of Petroleum, at least, the answer in the short term is no, because of reliable and diverse supply chains close by in Asia. Of course, you could say it’s another value-adding industry being destroyed while Australia obliviously ships off bulk commodities without a thought to the end of the bull market.

But there’s also the prospect of alternative energy markets developing. Australia is a big energy player in uranium, coal and natural gas. It’s the last one that might develop different products to fuel Australia’s transport industry. According to the report,

‘The EWP anticipates that rising oil prices will spur developments in indigenous alternative fuels and market opportunities will emerge for gaseous transport fuels, such as LNG and compressed natural gas. The EWP noted CSIRO predictions of a transformation of Australia’s transport energy sector, which would see:

“By 2050 there will be significant growth in transport fuels and technologies that have little or no presence in the market today. Biodiesel could contribute around 13% of total transport fuel consumption, natural gas 12%, bio-derived jet fuel 8%, electricity for transport 5%, and synthetic diesels 2%”.’

Developments like that get Dan Denning excited about the prospects for shale gas. He sees it as a potential game changer for Australia (and investors). Even more! As Dan said in his recent report, ‘game-changer is an overused term. But it’s an understatement when describing the impact of shale gas on energy and world politics. Energy is the life-blood of an economy. Australia is no different.’

He’s backing natural gas to fuel more and more of Australia’s energy needs as the future unfolds.

Callum Newman
Editor, Money Weekend

PS. Don’t forget if you want to keep track of the latest things we’re reading and brief commentary on events that happen through the day, check out our Google+ page and Kris Sayce’s as well.

Join me on Google+

From the Port Phillip Publishing Library

Special Report: Australia’s Energy Stock BLOWOUT

Daily Reckoning: The Moment of Explosion

Money Morning: Only Lunatics Need Apply for This Stock Market Rally

Pursuit of Happiness: <a href="http://www.pursuitofhappiness.com.au/index.php/opportunity/why-a-playstation-and-mining-technology-have-more-in-common-than-you-think/4307/"

By MoneyMorning.com.au

Technology: 3D Technology Now Available for Those Under Six Years of Age

This trend of immersive entertainment is something that’s really gaining momentum. The way we see things moving forward is the applications and tools you use in the digital world, Facebook, Google Maps, Trip Advisor, Tram Tracker, etc. will be integrated with your physical environment.

For example, you arrive in Berlin on holiday and you’ve never been there before. You ask yourself, ‘How do I get to Alexanderplatz?’ You see projected through your smart glasses (prescription smart glasses if necessary) a 3D image on the pavement of a virtual tour guide that says, ‘Follow me.’

So you follow your virtual tour guide, but realise the walk is quite far. You look at an oncoming bus. Your iWatch displays a 3D holographic timetable showing this is the number 62 bus that goes to Brandenburg Gate, not Alexanderplatz. It also shows the next Alexanderplatz bus is 20 minutes away. So you decide to continue to follow your virtual tour guide.

This example of immersive technology is not so far away. And there are a number of different companies working on separate technologies that when combined, help to create a world of Integrated Technologies.

One of the technologies that’s a part of this is 3D technology.

The annoying thing about 3D is the Buddy Holly style glasses you generally have to wear to get the 3D experience. For anyone that wears spectacles to see properly on a daily basis, this is über-annoying. Glasses on Glasses. Throw in Google Glasses and you’ve got Glasses on Glasses on Glasses.

Too much!

Fear not though; a number of innovative companies have been working on a 3D experience sans-3D glasses. Nintendo had a crack at it with their handheld gaming console Nintendo 3DS. Although it worked (not very well though) Nintendo suggested kids under six shouldn’t use it because it could affect their vision development…not a great selling point.

More recently the usual tech companies, Sony, Samsung, and LG, have experimented with bringing 3D Glasses-less TV’s to the masses. But it hasn’t really eventuated, yet.

There is one little start-up company called Nanoveu using nanotechnology to convert 2D imagery into mind-bending 3D for your phone, tablet and possibly future devices like the iWatch or Google Glass.

To understand how, first you need a basic knowledge of how 3D works. In a nutshell, a 3D device will send different images and light to your left and right eye independently. Your brain pieces these together to create a 3D image that you see.

Two ways of doing it are on the device itself, or in the 3D glasses that you wear. Without going into more detail on each, they both provide you with a 3D experience…when you’re wearing the glasses.

What Nanoveu have created is simply a thin screen protector that you overlay onto your phone. And thanks to the marvels of nanotechnology the screen will enable different arrays of light to enter your eyes independently. This provides you with a 3D image, without the need for 3D glasses…and you can be under six to see it too.

Energy: The Resurgence of Nuclear Power

We introduced you to a new type of nuclear power generation a couple of weeks ago (if you missed it, you can read it here). But although that was new nuclear technology, the existing design of reactors has quietly made a resurgence.

This isn’t news in China, where there are currently 28 new nuclear reactors being built. Similarly in India where there are seven new reactors currently under construction, or even Russia where there are ten underway. Where this becomes a, ‘you’re kidding me’ moment, there are two brand new nuclear reactors being built in…the US.

These are the first nuclear reactors that have been built in over 30 years!

What has assisted these carbon-dioxide-free power plants from getting the green light has been over $8 billion in government loan guarantees from US president, Barrack Obama’s administration. And from all accounts the Obama administration isn’t stopping there.

It seems as though they’re a big supporter of nuclear power. The US Department of Energy is co-funding further development of smaller modular nuclear reactors just for the US. About another $450 million to help develop the project.

But whether you’re pro-nuclear, or anti-nuclear, it makes no difference to the raw fact that there are over 60 nuclear reactors worldwide underway. So far, no fossil fuel or alternative energy generation method comes close to the power ability of nuclear reactors.

Thanks to new technologies, design methods and safety systems, nuclear power is slowly but surely making its way back to the mainstream psyche as a reliable power source.

As we realise that past events are not an indication of the future events (sounds a bit like investing 101) we start to realise that the fundamentals of nuclear power make a pretty viable case.  As a primary method of allowing energy independence of nations, nuclear reactor power just might be the answer that’s been staring us in the face all along.

Might be time for Australia’s Minister for Resources and Energy, The Hon. Gary Gray, to take a look at Australia’s nuclear position again.  Whilst he still occupies the position, anyway.

Health: Finally, The First Step Towards Artificial Intelligence is Underway

We like it when countries actually look beyond their political tenure and make a genuine investment in the future of their countries. Sometimes, the future of humankind too.

And credit where credit is due to Barak Obama; pledging initial funding of $100 million for what is being called the ‘Brain Research through Advancing Innovative Neurotechnologies’ project (BRAIN). Now that’s future planning. (We think this $100 million will turn into billions pretty quickly too.)

What’s interesting is the first round of $50 million in funding is coming from the Defence Advanced Research Projects Agency (DARPA). DARPA is a bit like the ‘mad scientist’ arm of the US government. DARPA’s Director Arati Prabhakar stated,

 ‘This kind of knowledge of brain function could inspire the design of a new generation of information processing systems; lead to insights into brain injury and recovery mechanisms; and enable new diagnostics, therapies and devices to repair traumatic injury.’

As Arati points out, the ability to map the brain and truly understand its processes will open up an array of unknown opportunities and advancement in not just health and sciences, but technology and information.

There’s potential to understand and cure brain related diseases and injuries like Alzheimer’s, Parkinson’s and strokes. But importantly, if we know how the brain works then we can reverse-engineer it. So the real possibilities lie in being able to replicate, or construct an artificial brain. Which is why we suspect DARPA has a very strong hand in the development of this project.

Whatever subversive motive may exist, it still stands that the task to map the brain seems overwhelmingly impossible at this early stage. Even Francis Collins, who headed the Human Genome Project when it started, has said about BRAIN,

‘To understand how the human brain works is about the most audacious scientific project you can imagine.’

But remember the Human Genome Project at the time of launch seemed near impossible to complete. And look at where we are now, potential for the manipulation of DNA in everything from designer babies to information storage.

We’ll look back at this starting point in 5–10 years and realise its significance. It’s a historical moment. It will lead to breakthrough technologies and scientific discoveries that haven’t even been thought of yet. It might even lead to the elusive sci-fi concept of artificial intelligence.

As we’ve said before, you can’t create an artificial intelligence until you understand how the brain works. We’ll we’ve taken the first step on the pathway to understanding the brain. It will be an exciting time when we have it mapped out.

Sam Volkering

Technology Analyst, Money Weekend

 Ed Note: Sam Volkering is assistant editor and analyst for a new breakthrough technology investment service to be launched by Money Morning editor Kris Sayce. The breakthrough technology service will introduce cutting edge investment ideas from the technologies of the future, including medicine, science, energy, mining, and more.

From the Archives…

Why Dividend Stocks May Not Stay This Cheap for Long

29-03-2013 – Kris Sayce

Respect the Market Trend, but Don’t Expect it to Last

28-03-2013 – Murray Dawes

Silver ‘$100 Within Two Years’

27-03-2013 – Dr. Alex Cowie

11 Billion Reasons to Expect a 200% Move in Gold Stocks Within Months

26-03-2013 – Dr. Alex Cowie

You Want Proof the Stock Market’s Heading Up? Try This…

25-03-2013 – Kris Sayce

By MoneyMorning.com.au

Recently China has a growing chorus of accusations against it. China has been called many different things overs its thousands of years of history. Lord Voldemort probably hasn’t been one of them, until now. After all, the evil antagonist from the Harry Potter novels is considerably younger.

 China is ‘the foe who must not be named,’ quipped the Wall Street Journal last weekend, referring to the aforementioned Dark Lord. Retired US Lieutenant Colonel Timothy Thomas says Uncle Sam is tiptoeing around the issue of Chinese state-sponsored hacking against US government and commercial institutions. Not to mention leaving America vulnerable where it hurts in the 21^st century: cyberspace.

Who’s the inspiration for the Chinese war strategy? Bill Gates? Mark Zuckerburg? Of course not. It’s Sun Tzu! He wrote the Art of War 2,500 years ago. ‘The essence of China’s thinking about cyber warfare is the concept of shi,’ says the Liuetanant Colonel Thomas, ‘the strategically advantageous posture before a battle.’

 That means finding vulnerabilities. In this case, China using computer network reconnaissance and tactics like ‘spearphishing’. Mind you, we hardly think the US is innocent in all of this.

The beating heart of advances in cyber warfare is the same as the one that runs Facebook and Twitter: algorithms. Our new technology analyst Sam Volkering says,

‘The algorithm is the lifeblood of today’s internet and technological advancement.’

The takeaway is that, whether you’re spying on a nation state or updating your Facebook status, it’s because of the algorithm that any of this is possible.

To think a $262 billion company (Google) started from one simple algorithm that finds information in webpages is mind blowing. Successful online businesses work because of good old mathematics. And there’s money to be made in companies that put it to good use. Stay tuned for updates from Sam on this.

Callum Newman
Editor, Money Weekend

PS. Don’t forget if you want to keep track of the latest things we’re reading and brief commentary on events that happen through the day, check out our Google+ page and Kris Sayce’s as well.

From the Port Phillip Publishing Library

Special Report: Australia’s Energy Stock BLOWOUT

Daily Reckoning: The Moment of Explosion

Money Morning: Only Lunatics Need Apply for This Stock Market Rally

Pursuit of Happiness: Why a PlayStation and Mining Technology Have More In Common Than You Think

By Bill Bonner

Gold got whacked again — down another $22 yesterday. Stocks fell too. The Dow fell 111 points.

Is it the start of another correction? Or just a hiccup? Stay tuned!

Meanwhile, independent Sen. Bernie Sanders from Vermont is up in
arms. He demands that the White House and the House of Representatives
say no to benefit cuts for Social Security recipients and disabled vets.

He got the Senate to express itself on the issue too. Not
surprisingly, the senators are opposed to any cutbacks that would fall
on their voters’ heads. No senator dared raise his voice against it.

What exactly has been proposed?

Simple enough: more fudge.

Special Numbers

Anyone who has read our Diary for very long knows that the numbers used by the federal government… and by economists, generally… are special numbers.

They look like normal numbers. They use the decimal system. You can
add them. You can subtract and multiply them. But they are imposters…
crooked… bent… perverted. They do not mean the same thing as
stand-up, normal numbers. They may not mean anything at all.

If you look in a basket of apples, you will find a certain number of
them. You might have one. You might have six. But whatever number you
have, it will be an actual, real number. It will accurately describe
what’s in your basket.

But what if the feds tell you the unemployment rate is 7.6%? What if
they tell you that GDP is growing at 2.5% per year? What if they insist
consumer prices are rising at a 2% annual rate?

What do you know? Nothing!

These are public numbers, not private numbers. Like public
information, generally, they are low-quality numbers… with little real
information content… and, often, negative value.

They may have meaning, but it is not the same meaning that you expect
from other numbers. Often, they lead you to believe something that
isn’t true. And you can never trust them.

The Feds’ Latest Scam

What got Sanders worked up was the latest attempt to use these scammy
numbers to lower US deficits. The idea on the table is a plan that
probably originated here in Argentina. It is shifty enough.

The feds propose to change the way they calculate the CPI — a so-called “chained dollar” inflation rate — so that they will get a lower reading and, thereby, send less money to the old folks.

Heck, the number can be almost anything you want! Why not make it convenient for the feds?

On the surface, it appears to be the rarest sort of government initiative
— the kind we can approve of. After all, the feds spend too much.
Cutting back would allow more people to keep more of their money.

But isn’t it cheating the graybeards and the cripples?

Yes, of course. They were promised money that does not belong to
them. As it turns out, they will get less than they expected. But so
what?

The politicians promised to adjust payments to the CPI. As we’ve
discussed at length, the CPI was fudge from the get-go. It already
understates real price increases substantially. According to John
Williams of ShadowStats.com, the real CPI — calculated as the feds did
in the Carter administration — is 9.6%, not 2%.

So they’re already cheating retirees and veterans. Might as well cheat them a little more…

Regards,

Bill

To learn more about Bill visit his Google+ page or Bill Bonner’s Diary

By The Sizemore Letter

It is truly a digital age: gold bugs have gone virtual.

I’m talking about Bitcoin, of course.  I realize that Bitcoin is not gold and has nothing to do with gold; it is a true cyber currency made of nothing but ones and zeros.  But its popularity is driven by the same forces that have caused investors to run to gold over the past decade: fear of inflation and a general mistrust of the global financial system.

Five years from now, I have my doubts as to whether Bitcoin will still be around.  In order to be taken seriously, it has to reach that tipping point where it becomes a viable medium of exchange accepted by mainstream retailers and not merely a pet project for ideological anarcho-libertarians and other assorted malcontents.  It could happen; but I’m not betting on it.  It’s taken more than a decade for Paypal to be accepted at non-internet cash registers, and Paypal is denominated in a recognized currency.  I don’t see retailers spending the money to update their payment systems any time soon, and before they do I would see this little fad fizzling out.

But I digress.  Today, I have no recommendation to short Bitcoin.  As tempting as it is, it’s dangerous to short anything that is in the middle of a parabolic move.  (And, alas, I’m not sure if it’s even possible to short Bitcoin at this time, unless there are derivatives I am unaware of.)

Instead, I recommend shorting Bitcoin’s far older predecessor, the barbarous relic itself: gold.

Gold has been in virtual free far since October.  In that time period, we’ve seen six months of aggressive QE Infinity from the Federal Reserve, an inconclusive Italian election with the potential to plunge Europe back into crisis, a botched Cyprus bailout that threatened to set off a bank run, and the most aggressive monetary stimulus in modern history coming out of Japan.

If none of these developments can spark interest in gold, then it’s hard to see what will.  After a great decade-long run, it appears that the gold bull market has run its course.

Action to take: Short gold.  The easiest route is to short the SPDR Gold Trust (NYSE:$GLD), though if you want to throw a little gasoline on the fire, you can instead buy the Proshares Ultra Short Gold ETF (NYSE:$GLL), a leveraged inverse ETF.

Gold is a volatile commodity, and you should be careful when shorting it.  I recommend something along the lines of a 10% trailing stop.  Within 1-2 years, I expect gold to be trading back in the $1,000-$1,200 range.

Disclaimers: Sizemore Capital currently has no positions in any security mentioned.

The post Bitcoins and Gold: I Would Short Them Both If I Could appeared first on Sizemore Insights.

By Aaron Gentzler

A groundbreaking new business, upstart.com,
built by a group of ex-Google employees, allows you to invest in the
future endeavors of promising college graduates for as little as $100.

Upstart allows you to become a venture capitalist… from your own
home… using just your computer and an Internet connection.

That’s because, as the graduate you back embarks on a career or
starts their own business, you receive a portion of their income for a
set time.

Investing in startup businesses is highly risky. The vast majority
of startups go to zero. If you invest in a startup, chances are good
you’ll lose your money.

But if you invest in a promising college grad, chances are good that
you’ll reap a high return on your investment as they pay your loan
back through a small portion of their future income.

As I’ve written before, the US education system — with its sky-highs costs — is broken and saddles young people with unpayable debt.

Upstart.com gives promising, motivated young grads a forum to
advertise themselves and collect backing from investors — people like you.
And unlike the broken college loan system, Upstart borrowers have to
start paying back their loans only once they start making money.
(Upstart borrowers must pay back a percentage of any income over $30,000
for at least a decade.)

Upstart spends a lot of time ensuring that the grads you invest in
have strong earnings potential in the future. It verifies a student’s
identity, academic record, creditworthiness, work record… and even
test scores… before that student can seek funding. So you don’t have
to worry about vetting whom you are loaning your hard-earned cash to.

Upstart uses what it calls a “pricing engine” to project each
applicant’s future income over the expected lifetime of an Upstart loan
contract. This engine uses data from other graduates with similar
backgrounds and achievements.

Upstart targets an average annual 8% return for investors. This is
certainly tempting, with the yield on the 10-year Treasury note
languishing at 1.8%. But be aware that Upstart does not have a long
track record of returns. So your actual return could be higher or lower
than 8%.

Of course, no investment is risk-free. And Upstart allows you to
start diversifying your income streams outside the stock market —
which carries its own risks.

Even better, Upstart also allows you to use your saved capital to support the idea leaders of tomorrow’s business world.

Let me give you some real-world examples…

Chris S. will graduate from the University of Chicago later this
spring. He’s already started a business called Maroon Collegiate
Sportswear. The company makes high-quality clothing inspired by
university history.

Chris is looking for backers on Upstart.com to build his business and take it to other schools. Chris is graduating from college debt-free and wants to focus his full attention on taking Maroon as far as it can possibly go.

Ian S. from Stanford’s Graduate School of Business recently reached
full funding at Upstart.com for his project to build a health
care-specific application for the new Google Glass device.

And Brodie Y. from the University of Washington recently reached
full funding to launch a startup that he believes could revolutionize
online grocery shopping.

Right now, you need to be an accredited investor to start supporting
grads through Upstart. That means having a net worth of more than $1
million or an income that has exceeded $200,000 for the past two years.
But I expect this to change, as Upstart and other peer-to-peer lending
businesses gain acceptance.

If you are an accredited investor, this could be a great way to pick
up an extra income stream outside the stock and bond markets. If you
are not an accredited investor, keep an eye on developments. My bet is
that in two to three years, this kind of income-generating opportunity
will be open to all.

And when that happens, it will fully replace the broken college loan system young Americans are saddled with today.

Check out upstart.com for full details.

Best regards,

Aaron

P.S. If you are not yet an accredited investor, there are plenty of
other unconventional ways to pick up extra income outside the stock and
bond markets. For instance, you can turn an obscure law signed by
President Ford into three ultra-safe “off market” streams of income. Click here to learn more.