Month: December 2013

By Mitchell Clark, B.Comm.

It can only be described as a huge vote of confidence. The Boeing Company (BA) announced a whopping 50% increase in its dividends to $0.73 per share. And beginning this January, the company will begin a new $10.0-billion share repurchase program, in addition to the $800 million left from its previous share buyback plan.

The higher quarterly dividend will be paid out March 7, 2014 to shareholders of record on February 14, 2014. While Boeing is playing some “payout catch-up” with other dividend paying stocks, company management said increasing cash flow from a boost in jetliner production is the catalyst for renewed confidence in its business.

A two-for-one stock split from Boeing wouldn’t be a surprise at all. It’s been one of the strongest performers in the Dow Jones Industrial Average this year, and the stock will keep upward near-term pressure on the index.

Countless large-cap companies have been increasing their dividends—some significantly so—as balance sheets continue to get stronger.

This time of the year, the financial media loves to make forecasts about the stock market and other capital markets. It’s such folly, because it’s only guesswork.

But for equity investors, what corporations say about their businesses is key, and with so many large-cap companies in a strong financial position, any improvement in sales volume or pricing will translate immediately into earnings. I think there’s a good chance corporate earnings will surprise to the upside next year.

3M Company (MMM) caught the market off guard with a 35% increase in its dividends and a solid 2014 outlook. Johnson Controls, Inc. (JCI) just effected a 16% increase in its quarterly dividends and a new $3.65-billion share buyback program. (See “A $35.0-Billion Company Poised for Growth?”) NIKE, Inc. (NKE) recently boosted its dividends by 14%, and The Walt Disney Company (DIS) did so by 15%.

MasterCard Incorporated (MA) just announced a 10-for-one stock split, a huge 83% increase to its quarterly dividend, and a new $3.5-billion share buyback program. General Electric Company (GE) just raised its quarterly dividend 16%, and Pfizer Inc. (PFE) announced an eight-percent dividend gain, citing renewed confidence in its operational growth.

Increasing dividends are material news, and rising payouts are a reflection of improving business conditions at the corporate level and strong balance sheets. It all bodes well for earnings results next year.

Arguably, current valuations already reflect solid earnings outlooks, the expectation for more share repurchases, and higher quarterly dividends. If this is the case, it is still a foundation for more capital gains in stocks, even with the reasonable expectation of technical correction that’s so warranted.

With pressure on interest rates highly likely in 2014, they are still low enough to provide corporations with very cheap money to finance operations at this time. And with this backdrop, we’ll probably get more of the same over the coming quarters, with companies hoarding cash and avoiding bold investments in new plant and equipment.

Overall, the outlook for rising dividends, share repurchases, and stock splits remains excellent.

This article Large-Cap Stocks the Place to Be in 2014? is originally publish at Profitconfidential

By George Leong, B.Comm.

The holidays are just around the corner, and for the restaurant sector, that means big business, as people shop, dine, and head to the theaters.

From fast food outlets like McDonalds Corporation (NYSE/MCD) to steakhouses like Ruths Hospitality Group, Inc. (NASDAQ/RUTH), the holidays are a key time for the restaurant industry and a buying opportunity for investors in this sector.

The upward move in the sector has been strong, as shown on the chart of the Dow Jones U.S. Restaurants & Bars Index below. Note the upward trend marked by several breakouts. We are currently seeing some hesitancy, but I would look at weakness as a buying opportunity.

Chart courtesy of www.StockCharts.com

And as we move into the New Year, the key will be the jobs market and the economic renewal. Continued jobs growth will offer consumers added confidence to want to spend on non-essential goods and services, such as restaurant dining.

At the top of the food chain, in my view, continues to be McDonald’s, which remains a strong buying opportunity. (Read “McDonald’s Proving Position as ‘Best of Breed’ in the Fast Food Sector.”)This is the company every fast food operator wants to emulate.

However, the stock that I feel has the right blend of ingredients to succeed and is a possible buying opportunity is Chipotle Mexican Grill, Inc. (NYSE/CMG). While the price point is slightly higher than McDonald’s, the availability of ultra-fresh ingredients at Chipotle are a selling point for consumers, making the company a threat to steal market share away from others and a possible buying opportunity in the fast food sector.

Chart courtesy of www.StockCharts.com

On the other hand, if you prefer more of a sit-in, moderately priced restaurant where you can enjoy a steak, drink a “Bud,” and watch sports, then Texas Roadhouse, Inc. (NASDAQ/TXRH) may be worth a look as a buying opportunity. The chain includes more than 400 restaurants across 48 states and two countries.

Chart courtesy of www.StockCharts.com

The company is a model of consistency, reporting higher sequential revenue growth over the past 11 years, from $159.91 million in 2001 to $1.26 billion in 2012. The growth is expected to continue, with revenues estimated at $1.42 billion this year, up 12% year-over-year, and rising another 10.4% to $1.56 billion in 2014, according to Thomson Financial.

Texas Roadhouse has also delivered on the earnings end, reporting higher earnings in 10 of the last 11 years, continuing into 2013 and 2014, which presents a possible buying opportunity.

A contrarian small-cap restaurant stock that may be worth a look as a buying opportunity for speculators is Ruby Tuesday, Inc. (NYSE/RT), which has struggled and could still be years away from a turnaround. The company is losing money and is expected to see revenues contract 6.9% this year; however, they’re expected to edge up 1.7% in 2014, according to Thomson Financial. Ruby Tuesday may be worth a look on weakness toward the $6.00 or under level; otherwise, it’s a work in progress.

This article My Favorite Restaurant Stocks This Holiday Season is originally publish at Profitconfidential

US Dollar Index: With the Index bullish and threatening further upside, more strength is expected. However, it will have to break and hold above its declining trendline currently at the 80.61 level to trigger further strength. This if seen will extend recovery higher towards the 80.98 level where a violation will aim at the 81.48 level. A push through this level will set the stage for a run at the 82.00 level and possibly higher towards the 82.50 level. Its daily RSI is bullish and pointing higher supporting this view. Conversely, as long as it continues to trade below its declining trendline, expect a push back lower. Support lies at the 80.50 level where a violation will aim at the 80.00 level. Further down, support lies at the 79.75 level with a turn below here paving the way for a run at the 79.00 level. All in all, the Index continues to face upside threats in the short term.

Article by fxtechstrategy.com

Guest Post By Dennis Miller – Turn off the Tube, Tune out the Media, and Drop out of December Madness

Overconsumption of mass media during the month of December can cause emotional whiplash. Navigating images of smiling shoppers and candy-cane merriment while reading about a derailed train in the Bronx or Syrian refugees has left me pining for the days of yore—when Christmas was still vaguely related to a guy who wore sandals and annoyed his local government, and the only bad news you heard about was the drought or oxcart accident in your own village. Sure, folks still capitalized on religion and lots of bad stuff happened, but there was no 24-hour news/commercial cycle feeding us the play-by-play.

So, I unplugged from mass media and cleared some headspace to consider what my fellow retirees and I have to be grateful for.

1. The annual gift tax exclusion and the combined lifetime exemption. I will die a happy man if I never have to fill out IRS Form 709. The very idea of a taxable gift is downright nuts. I am, however, grateful for the annual gift tax exclusion ($14,000 in 2013) and the combined lifetime gift and estate tax exemption ($5,250,000 in 2013).While I discourage bailing out ne’er-do-well family members, giving ought to be a non-punishable choice. To exercise this freedom, Jo and I give our grandchildren silver coins each year, which I wrote about in The Greatest Investment I Ever Made.

   The freedom to give tax-free shouldn’t end with your dying breath, either. Between you and your spouse, you can give and bequeath a lot of money before either the federal gift or estate tax becomes a real hurdle. And for those of you with enough dough to dread the estate tax, there are fancy tools like a Grantor Retained Annuity Trust (GRAT) to drain your taxable estate and eliminate the problem.

2. Ted Benna and Subsection 401(k) of the Internal Revenue Code. The law providing for defined contribution pension accounts was enacted 1978, when most retirements depended on private pensions and Social Security. Enter Ted Benna two years later, then co-owner of a benefits consultancy, who figured out how to use the provision to create a straightforward, tax-advantaged way to save for retirement.Benna received quite a bit of press earlier this year for criticizing the overwhelming complexity of 401(k) plans today. Still, the tax benefits and employer-matching programs make contributing to your 401(k) well worth the small chore of understanding and managing it.
3. The Employee Retirement Income Security Act of 1974 (ERISA). Since the ’75 tax year, ERISA has allowed individuals to save pre-tax assets in a traditional IRA. Since then, a handful of IRA cousins have popped up—Roth, SEP, SIMPLE, and Self-Directed. Depending on your circumstances, one or more of these accounts can help you create substantial wealth for retirement.I struggled to open and contribute to my first IRA at age 35. Now its balance is proof positive that IRAs work—a truth I’m always eager to share with my children and grandchildren.
4. Increased longevity. Thanks to dramatic advancements in medicine, you can now expect to live to a ripe of old age (78.62 on average here in the US). When Roosevelt signed the Social Security Act of 1935 into law, women in the US had an average life expectancy of 63.9 years and men, 59.9 years. Yes, it’s a challenge to save for these extra years of retirement, but the flip side is: there is more life to enjoy.I just learned that our second great-grandchild is due on July 4. Had I been born one generation earlier, it’s unlikely I could have expected to live to enjoy such a happy moment, and I definitely could not have expected to live long enough to truly get to know the little munchkin. Today I expect to see this newborn off to high school, at the very least.
5. Time. Control over your own time is the single biggest perk of retirement. You’ve worked hard to reach your retirement goals. That work is what allows you to spend your time as you choose: traveling, relaxing with your spouse, playing with your grandkids, standing on your head—whatever floats your boat.Money plus time equals options. Be thankful to have both!
6. The option to enjoy a second career post-retirement. Turning 65 does not suck out your life force. If, like me, you choose to spend retirement working in a second (or third) career, there are countless ways to make that happen.A wonderful team of truly talented people surrounds me here at Miller’s Money. More than one senior has confided to me that he wished he could have worked with his current team during his first career; life would have been a lot more fun that way. I wholeheartedly agree.

It is you, our readers and subscribers who make our jobs possible. We are all very thankful for each and every one of you, particularly those of you who’ve written to share feedback and helpful suggestions. Your input helps us serve you better, which we will continue to strive to do.

On behalf of the entire Miller’s Money team—Alex, Andrey, Ann, Chris, Donna, Sam, and myself—happy holidays! Enjoy this month, savor the time with family and friends, and do not allow elves and advertisements to bog you down.

Oh! There is one last thing I am thankful for: the success of the Money Forever portfolio this year and our new Bulletproof Income strategy spearheaded by our lead analyst, Andrey Dashkov. Our mantra is: preserve capital and avoid catastrophic losses. Personally, I’m thrilled at how well we’re living up to that goal. Thus far, our total yield for 2013, including all positions bought, sold, and held for a partial year is 9.8%. And our current holdings are up 15.2%—and those are not annualized numbers. Other model portfolios may shout about even bigger gains, but I don’t know of any consistently performing that well while prioritizing safety as much as we do. For that I tip my hat to our research team.

In our current issue, we outline our portfolio allocations and our direction for 2014. If you have not taken advantage of our premium subscription at its current promotional price of $99/year, I strongly suggest you do so by clicking here. Consider it a holiday gift to yourself! The best part is you can download all of our material, my book, and special reports and see for yourself how nicely our portfolio has come together. Should you decide it’s not right for you, cancel within the first 90 days and receive a 100% refund, no questions asked. Please click here to learn more.

By George Leong, B.Comm.

Spain just rejected a massive $30.0-billion proposal from Las Vegas Sands Corp. (NYSE/LVS) to build a casino and entertainment resort near Madrid. The project would have been significant, with 12 hotels, six casinos, and many other amenities injecting some life into the stagnant country where the unemployment rate sits around 26%.

Now, the Spanish government had its reasons to turn down the deal; they centered largely on the associated activities that could surface when casinos and gambling arose. The same thing occurred in Toronto Canada, in which a $5.0-billion casino hotel project was also rejected.

But as is usually the case, a region’s loss is another area’s gain. Casino operators are always looking for growth and much of it has been focused on emerging markets outside of Las Vegas and the United States, in areas such as Asia and, more specifically, China where there is incredible wealth being created. But whether or not you like the casino industry and for whatever reasons, there will always be regions around the world that will welcome multibillion-dollar investments.

At this point, the top destination for casinos is Asia, or more specifically, the Macau region in China, which the Chinese government has supported as a region for gambling. China has designated economic development zones across the country and Macau has been designated a special administrative region for legalized gambling to attract the newfound wealth. (Read “China’s Expected Baby Boom a Boon for U.S. Business.”)

Make no mistake about it: Macau could eventually become the most sought-after region in the world for casino operators.

After its rejection in Spain, Las Vegas Sands shifted its capital and sights to adding more casino space in Macau. Having been to Macau, China, I have to say it’s truly a place to visit. The region combines the old world charm of this former Portuguese colony and the modern push by China to develop the “Vegas of the Orient” and attract money.

In the region, you have the old established casino areas, but there has been a major push over the recent years to build new colossal casinos and hotels in the Cotai Strip in Macau.

If you want to bet on the growth in Macau, and the Cotai Strip in particular, the two key players to watch are Las Vegas Sands and China-based Galaxy Entertainment Group Limited (OTC/GXYEY).

Las Vegas Sands, via its Sands China Ltd. subsidiary, currently owns four properties in the Cotai Strip, where it attracts tens of millions of visitors. The growth for Las Vegas Sands has been impressive there, with revenues in the billions per quarter.

Chart courtesy of www.StockCharts.com

Galaxy Entertainment is also an aggressive player in the region, with two core properties—Galaxy Macau and StarWorld Hotel and Casino—currently operating in the area. The company is set for more expansion at these existing developments.

Two other players with a smaller presence in Macau, China may be more familiar names: Wynn Resorts, Limited (NASDAQ/WYNN) and MGM Resorts International (NYSE/MGM).

If I was a betting man, I would put my money on Macau as the big-growth buying opportunity in the casino space for the next decade.

This article China’s Macau Gambling Region: The Growth Opportunity is originally publish at Profitconfidential

By John Whitefoot for Daily Gains Letter

It might not be as flashy as precious metals or the biotech industry, but the $27.0-billion U.S. yoga industry has some pretty strong numbers and corresponding retail stocks.

Over the last year, 15 million people regularly participated in yoga here in the United States, spending more than $27.0 billion on yoga products. Over the last five years, spending on yoga products has soared 87%. And the average annual increase of the number of people who practice yoga is expanding at a rate of 20%. (Source: “Yoga Statistics,” StatisticBrain.com, July 27, 2013.)

Furthermore, almost three-quarters (72.2%) of yoga participants are women and 68% earn at least $75,000 a year. On top of that, more than 40% of participants are in the lucrative 18–34 age demographic, and 41% are between the ages of 35 and 54.

While a number of publicly traded retail stocks operate in the yoga apparel industry, none are quite as well-known, for better or worse, as lululemon athletica inc. (NASDAQ/LULU).

Of course, the “for worse” part refers to the barrage of negative public relations (PR) that has helped to drop this retail stock’s share price down 24% so far this year. Lululemon has been under severe PR pressure since March, when the retail stock recalled its popular black yoga pants for being too see-through. Company CEO Christine Day stepped down in June; and in July, the company was dealing with another PR nightmare after insiders said the company shuns plus-sized shoppers. To make matters worse, company founder Chip Wilson blamed quality control concerns regarding the yoga pants on “women’s bodies” (more specifically, thick thighs).

Clearly, the bad PR has been hurting Lululemon’s share price. At the same time, the yoga apparel retail stock is posting solid numbers. The company recently announced that third-quarter results were better than expected, with revenues increasing 20% year-over-year to $379.9 million; earnings climbed 15% to $66.1 million, or $0.45 per share. (Source: “lululemon athletica inc. announces third quarter fiscal 2013 results,” lululemon athletica inc. web site, December 12, 2013.)

Unfortunately, the company’s fourth-quarter guidance was its undoing; sending it down by more than 16%. Management revised the company’s fourth-quarter guidance lower to between $535 million and $540 million, versus its previous guidance of $565–$570 million. That’s a top-end miss of 5.2%.

The 16% hammering the stock’s share price took might be a little rich, especially when you consider consumer confidence levels are up and the jobs numbers are strengthening. And over time, everybody eventually forgets a PR fumble.

Interestingly, shareholders have not lost all confidence in the company synonymous with yoga retail stocks; in spite of the recent tumble in its share price, Lululemon is still trading in a tight two-year range; albeit, it’s near the bottom, but it does have support.

To improve its image, Lululemon has implemented a new management team and will be introducing new products to its growing legion of customers. That said, its one-year misstep has allowed competing retail stocks like Under Armour, Inc. (NYSE/UA) and NIKE, Inc. (NYSE/NKE) to step up to the yoga mat.

Will image problems in 2013 be the undoing or the beginning of the rebirth for the retail stock in 2014? Even though Lululemon goes hand-in-hand with high-end yoga wear and products, it’s not the only retail stock investors should consider.

There are more than a number of retail stocks willing and able to step in and take up Lululemon’s slack. And when it comes to high-end yoga gear, some consumers will spend quite a bit to look good—even when they’re not in yoga class.

Original: http://www.dailygainsletter.com/investment-strategy/should-you-give-lululemon-a-chance-in-2014/2252/

Article by Investazor.com

Even though yesterday not many expected a tapering of the Quantitative Easing program, it happened. Federal Reserved announced that they will cut the monetary easing program from 85B to 75B. Now everybody says that this decision was semi expected, to say it like that, by the market and that is why the reaction was like it was.

We actually think that the real explanation of the market reaction is that even though the FED cut the QE with 10B dollars, but equilibrated the balance with the fact that they will keep the interest rates as low as possible even after the unemployment rate had touched 6.5%. The main banks are expecting low interest rates until late 2015.

They are going to reduce even more the program but this will happen if the economic data will be accordingly to their forecast. The inflation rate is below FED’s target and they will keep a close look over it during the next period.

All these together have appreciated the US dollar and triggered a drop in Gold’s price, but it also triggered big rallies for the indices.

Today the main economic releases were the Current Account for the Euro Area, which rose at a surprisingly 21.8B; UK’s Retail Sales which grew by 0.3% and the Unemployment Claims from USA which went up to 379K.

Up next the markets are still waiting for the Existing Home Sales, the Philly Fed Manufacturing Index and CB Leading Index.

After all of these, the EURUSD is trading around 1.3670, where it has encountered a powerful trend line. On an intraday interval a break above 1.3700 could trigger a rally targeting 1.3750, but a continuation of a drop under 1.3650 would be a good selling signal targeting 1.3600.

USDJPY jumped to 104.20 from 102.70, after last night decision. The current trend might continue only if the local high will be broken, but we would carefully look also after a corrective move under the 103.75 low. AUDUSD is currently trading around 0.8840 but the pressure seems to be on the downside.

Dow Jones Industrial, on features, rallied above 16000 and continued to 16100. At this point the consolidation is fragile and the up move might continue targeting 16200.

XAUUSD bumped into 1200$ per ounce, but it seems that bears are still trying to break this level. Silver is heading for 19$ per ounce with no local support to stop the fall.

Crude Oil is knocking at 99.00$ per barrel and the bulls power seem to keep growing, so we expect a breakout above this level during the next trading hours. Brent Oil has encountered a good resistance at 110.35$ per barrel but it might not be enough to stop its rally. A break above this level could target 111$ per barrel.

Do you remember our yesterday’s article What are investors expecting from the FOMC meeting?  Our option expired today outside the range we mentioned for the EURUSD and we cashed in the full payout.

The post What did really happen with the Markets? appeared first on investazor.com.

By Mitchell Clark, B.Comm.

There are so many esoteric good businesses out there, but very few attractive investment opportunities for new money right now.

In equities, I search for consistency from a company—consistency of corporate operating performance, diligent management in good times and bad, and a good track record of return on investment on the stock market. A stock’s past performance isn’t directly indicative of its future performance, but I find it goes a long way to improving your odds.

One company that provided the kind of consistency I’m referring to, and which I reviewed at the beginning of the year and again in October, is A. O. Smith Corporation (AOS). This is a Milwaukee-based water heater company. This stock has proven to be an exceptional moneymaker as of late. (See “How This Solid Old Economy Company Keeps Beating Tech Stocks.”)

But while the company’s business is growing, it’s not growing exceptionally; it’s not some highflying new technology company or some 3D printer manufacturer. A. O. Smith simply manufactures and sells water heaters, and while I really like this business, I don’t think it’s worth 23-times its forward earnings.

The Fed’s unprecedented monetary stimulus has boosted the share price performance of the most mature enterprises to the point that they’ve significantly outperformed their historical track records. This company is one of those enterprises. A. O. Smith’s 20-year long-term stock chart is featured below:

Chart courtesy of www.StockCharts.com

While shareholder return in a company like A. O. Smith has been great over the last few years, there is seemingly little value in accumulating the stock now. Price momentum can always surprise with its duration, but there’s just not that much to buy in a market that’s at its all-time high.

This is why a meaningful and prolonged stock market correction would be so useful for equity investors who can’t seem to find any attractively priced businesses in which to invest.

Over time, most of the best publicly traded businesses have been consistently hitting new record-highs on the stock market, peppered with periods of nonperformance.

As share prices increase, I view investment risk as going up commensurately. While the opportunity cost of not being in equities has proven to be significant, a little “GARP” (or growth at a reasonable price) is a useful reminder.

So for those investors considering new positions, there’s not a lot of action to take in this stock market, considering the amount of investment risk associated with elevated valuations and record-high share prices.

With the exceptional performance this year of the S&P 500, the NASDAQ Composite, the Russell 2000, and the Dow Jones Industrial Average, this isn’t the time to be a buyer.

In terms of portfolio strategy, I’m reticent about buying this market and a company with a good track record like A. O. Smith. Given current information, the next major price correction in stocks will likely be an attractive buying opportunity, so long as deflation isn’t in the cards.

I like an old economy company like A. O. Smith, but I wouldn’t be a buyer of the stock currently. If the position corrected to below $40.00 a share, that would be another story.

So many mature enterprises like A. O. Smith have experienced an expansion in valuation and record-high share prices. The water heater business is a good one long-term, but it’s only worth considering when it’s a real value.

This article The One Place New Money Can Go to in This Stock Market Right Now is originally publish at Profitconfidential

London Gold Market Report

from Adrian Ash

BullionVault

Thurs 19 Dec 08:25 EST

WHOLESALE London gold sank against all currencies Thursday morning, falling 1.9% vs. the Dollar to hit 6-month lows after initially trading flat overnight despite the US Fed finally reducing its $85 billion per month in asset purchases.

Cutting next month’s quantitative easing of US mortgage and longer-term government bond rates to $75bn, the Fed pointed to “growing underlying strength in the broader economy.”

 US stockmarket indices the S&P500 and the Dow surged to new all-time closing highs, while Treasury bonds fell and spot gold fell through this week’s previous low at $1230.

 Besides the taper, however, the Fed revised its policy on short-term interest rates, saying it will hold the federal funds rate at zero “well past the time” that the US jobless rate falls to 6.5%, its previous line in the sand.

 Overnight in Asia, Japanese shares rose but Chinese stocks fell as the People’s Bank of China broke its own rules and took to Weibo, the equivalent of Twitter, to announce a “short-term liquidity operation” after Shanghai’s interbank lending rate jump above 10%.

 The PBoC usually waits a month before reporting such moves, says the Financial Times.

 “It’s very clear they want to calm down market fears,” the FT quotes ANZ analyst Zhou Hao, noting the previous spike in Chinese interest rates in June, when US Fed chairman Ben Bernanke spoke about possible QE tapering.

 Shanghai gold today fell 0.8% in Yuan but increased its premium over international prices from $6 to $11 per ounce.

 Amongst Western investors, “More sensible minds realise,” says a note from David Govett at brokers Marex, “that on the whole [the Fed news] is not a good move for the precious complex.

 “With further tapering probably to come over the course of next year, the outlook remains muted. However, I don’t subscribe to the theory that it’s all over for the bullion market [and] would be a buyer of dips if we do manage to break below $1200.”

 Bids in London’s wholesale market briefly dropped below that level Thursday morning, hitting a 6-month low of $1199.75 per ounce.

 Priced in Sterling and Euros, wholesale gold bullion fell to its lowest since spring 2010, down 29% and 31% respectively from the start of 2013.

 Silver tracked gold in Dollars, briefly falling below $19.30 per ounce – a “key level” according to technical analysts at one bullion bank.

 Fed tapering “highlights the overall positive sentiment towards the macro economy,” reckons UBS analyst Joni Teves.

 “Equities are in fierce competition with gold for investor dollars, and this year’s trend of rotation away from gold into growth assets is expected to continue into 2014.”

 “This is another sign of increasing normalisation for the world economy,” agrees Matthew Turner at Macquarie Bank. “Gold’s insurance function is less desirable in that environment.”

 “But if the economy is accelerating as people think,” counters Albert Edwards in his latest Global Strategy Weekly for clients of French investment and London bullion bank Societe Generale, “how come Thomson Reuters has just reported the fastest pace of US earnings downgrades on record?

 “If we are set for a profits-driven economic slowdown, then the low rate of core inflation will start to become a key concern. Deflationary forces are in fact stronger than even the latest [official data] suggests.”

Adrian Ash

BullionVault

Gold price chart, no delay | Buy gold online

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can fully allocated bullion already vaulted in your choice of London, New York, Singapore, Toronto or Zurich for just 0.5% commission.

(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

USDCHF fell to a new low in this week and now reversing sharply to the upside. We adjusted the wave count and already have five waves down in wave (c) so pair could continue higher if we consider an ending diagonal on a daily chart where each leg is made by three waves! However it would too soon to turn bullish on USDCHF  as long as 0.9076 level is in place. We need an overlap with this level to invalidate alternate scenario of blue wave (iv) as labeled on the chart.

USDCHF Elliott Wave Analysis 4h

Written by www.ew-forecast.com

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