Month: May 2011

By EarlyToRise

Recovered memory syndrome (RMS) is a phenomenon whereby a questioner “helps” someone remember events that may be fictional by asking leading questions. The reason such questioning works – in bogus molestation cases, for example – is because the mind is very susceptible to suggestion.

But RMS is just one aspect of a much broader problem – the consequences that tend to flow from any kind of false perception of reality, no matter what the cause. False perceptions brought about by RMS are the result of what we commonly refer to as “brainwashing” or “the power of suggestion.”

Interestingly, good advertising and good salesmanship use this same tool to try to guide consumers’ perception of reality. If successful, it can result in sales, to be sure. But it also can result in dissatisfied customers if such customers later believe they were misled.

Action is the starting point of all progress. But an accurate perception of reality is the foundation upon which a successful person bases his actions. A false perception of reality leads to false premises. Which, in turn, leads to false assumptions. Which, in turn, leads to false conclusions. Which, ultimately, leads to negative results.

If, for example, a batter perceives that the pitcher has just released a fastball, but in fact the pitch is a curve, there’s a high probability he’s going to swing and miss.

The point is that the roots of success are planted in one’s perception of the world.

The late conservative economist Henry Hazlitt once wrote that an entrepreneur’s success is to a great degree dependent upon how accurately he can predict the future. And, though the entrepreneur may not consciously think about it, those predictions are based on his perception of reality.

I’ve seen one case after another of a person having a warped perception of what he brings to the negotiating table, which usually results in his walking away empty-handed. Homeowners are often guilty of this kind of self-delusion when they harbor an inflated perception of the value of their houses.

False perceptions also run rampant in the publishing business. First-time authors usually believe that a publisher will heavily promote their books. Unfortunately, such a perception is pure fantasy. Publishers do not promote books. They print and distribute them.

On the other side of this coin, most first-time authors also tend to believe that they’ve written War and Peace and that their masterpiece will sell quickly through word of mouth. Again, such perceptions are pure fantasy. An author has a better chance of winning the lottery.

The inaccurate perceptions one can harbor in business dealings are literally infinite. But there is one that is probably more costly than any other. I am referring to what occurs when you become involved in a business deal with someone who is clearly unethical.

An acquaintance of mine had an uncanny knack for becoming entangled with dishonest people. His problem was that he was a romantic. He simply couldn’t stop himself from becoming enamored with every guy who crossed his path wearing a fake Rolex. And the more such an all-show-and-no-dough person boasted about his accomplishments, the more mesmerized he became. As you might have guessed, he spent more time in court than he did working on his business.

I can’t give you a surefire formula for being able to differentiate between honorable and disreputable people, because I myself still manage to get my body parts caught in the wrong place from time to time. Happily, however, I have noticed two changes in my life with regard to this problem.

First, it happens to me much less frequently. And that tells me that I’ve improved my perception of people. Second, when I do find myself involved with someone with questionable ethics, I make it a point to exit quickly – even if I have to do so at a loss.

While I said that I can’t give you a surefire formula for being able to differentiate between honorable and disreputable people, I can tell you how to increase your odds of becoming involved with an unethical individual. All you need to do to accomplish such a masochistic feat is carelessly confuse your wishes with reality.

This emotional mistake happens most often when your desire to do a deal is so great that you ignore the neon sign on the other person’s forehead that reads: “LSCD” – Lie, Steal, Cheat, Deceive. The only antidote I know for avoiding this mistake is to be relentlessly vigilant when it comes to not allowing your desires to override what your eyes, ears, and gut tell you.

All this may seem far removed from the phenomenon of recovered memory syndrome, but it’s not. RMS is often nothing more than a false perception of reality brought about by the power of suggestion. And that same power of suggestion, whether it comes from someone else or is self-administered, can lead to false perceptions in any area of life.

Which is why it’s incumbent upon you to become adept at distinguishing between reality and illusion. A false perception of reality – regardless of the cause – automatically leads to failure. An accurate perception of reality doesn’t guarantee success, but it’s an excellent first step in the right direction.

You can’t put too much conscious effort into sharpening your perception of reality. It’s mentally hard work, but everything worthwhile is hard. The more you’re willing to pay the price of vigilance in this area, the more often you’ll find yourself enjoying the benefits.

[Ed. Note: If you’re ready for a treasure chest of proven ideas, strategies, and techniques that are guaranteed to dramatically improve your dealmaking skills – and, in the process, increase your income many times over – you won’t want to miss Robert Ringer’s bestselling audio series, A Dealmaker’s Dream.

Robert Ringer is a New York Times #1 bestselling author and host of the highly acclaimed Liberty Education Interview Series, which features interviews with top political, economic, and social leaders. His recently released work, Restoring the American Dream: The Defining Voice in the Movement for Liberty, is a clarion call to liberty-loving citizens to take back the country. Ringer has appeared on numerous national talk shows and has been the subject of feature articles in such major publications as Time, People, The Wall Street Journal, Fortune, Barron’s, and The New York Times. To sign up for his e-letter, A Voice of Sanity in an Insane World, visit www.robertringer.com.]

This article appears courtesy of Early To Rise, a free newsletter dedicated to creating wealth and success through inspiration and practical, proven advice. For a complimentary subscription, visit http://www.earlytorise.com.

By Ulli G. Niemann

How many times has this happened to you? You’re at a social function and the conversation turns to investing. Pretty soon, people are comparing how well their investments are doing. As you might imagine, being an investment advisor this happens to me a lot. However, I recently had an experience with it that startled me.

Bob, one of the guys I was chatting with at a party, asked what kind of returns I had made for my clients with my methodical no load mutual fund strategy during the past year. I replied that they had unrealized gains of slightly over 29%, after management fees, for the 8 months that we were invested.

Bob countered with a smirk that he had made a 40% return. I raised my eyebrows and told him that was darn good-and suggested that maybe he ought to be managing my money. At that point we were interrupted and, as the evening went on, I began to wonder exactly how Bob had gotten his great return.

I cornered him a little later on and, upon digging a little deeper, the story looked somewhat different. Yes, he had made a 40% return on a mutual fund he had some money invested in, however, we were comparing apples and bananas.

He had a total portfolio of $100k. Being cautious, he had invested only $10k into a mutual fund, from which he profited $4k after he sold it. The balance of his portfolio ($90k) was sitting in a money market fund earning some 0.35% per year.

So, while he had made 40% on 10% of his investment, he had only made 4.35% on his whole portfolio. My methodology was also focused on protecting my clients’ investments and it had increased their entire portfolio 29% (unrealized). That would be an apple to apple comparison when measuring my returns against his. Bob’s one fund realized 40% return. However, had I approached it the same way Bob had, I could have described one of the funds I used that had realized over 49% for the same period.

Actually, Bob’s not-so-good-news story didn’t stop there. Bob admitted to having followed the losing Buy and Hope strategy through the bear market of 2000 and had finally sold out at a 50% loss a year ago, before committing $10k to a mutual fund investment.

I was pleased to be able to tell him that my methodology had gotten my clients out of the market before the bear took his big bite, and they suffered only minimal losses before finding safety in money markets accounts. And when my trend tracking figures directed us to move back into the market, they still had most of their money poised to start earning for them again-which it did and very nicely, thank you.

The moral of the story is to look past the surface and don’t take any numbers thrown at you at face value. Remember, most people returning from a weekend in Las Vegas will shout about their winnings and mumble about their losses.

Panama City, Panama: The truth is, there is no reason not to begin planning today to launch your new life overseas. Here are the nine most commonly offered reasons for not retiring overseas…and why they don’t matter.

Also This Week: Own On Panama’s Most Beautiful Pacific Beach For As Little As US$35,000, Zero Down, Zero Percent Interest…Paris Versus Panama City, Three Years On…The One Think You Need To Know About Kyiv…Irresistibly Exotic…

Dear Overseas Opportunity Letter Reader,

Reason Not To Retire Overseas #1: “I can’t afford it.”

Your nest egg has been marginalized in recent years, and you’re thinking that there’s no way at this point that you can afford to entertain these notions of living or retiring overseas.

Here’s the truth: You can’t afford not to. I mean this both literally and figuratively.

You could take my advice and launch a more comfortable, more interesting, safe, pleasant, even adventure-filled life in a number of places around the world that I introduce to you in these dispatches on a budget of as little as US$1,200 per month or less. In some parts of Panama, Colombia, Thailand, and Ecuador, for example, you could live comfortably on a budget of less than US$1,000 per month. I’d be surprised if you can’t afford that.

But here’s the real point: You owe it to yourself to go find out for yourself just how affordable and, more important, just how fun and adventure-filled a new life in a new country can be. I say again that, cost of living aside, you can’t afford not to do this.

Reason Not To Retire Overseas #2: “It’s not the right time.”

There is no right time.

Sure, it’d be easier to stay put and do nothing. But where would that leave you at the end of your days? What stories would you have to tell? What adventures to remember?

Years ago, I met a gentleman from Tennessee who explained that he had been researching the idea of retiring to the Dominican Republic for two years. “I’m convinced the DR is a place I want to be,” he told me, “but I’m just not sure the timing is right…”

“Have you considered other options?” I asked.

“Well, before I started looking closely at the Dominican Republic, I researched Costa Rica for four years.”

“What did you end up doing there?”

“Oh, I never did anything. After four years of looking, prices had risen so high that I figured it no longer made sense.”

“Ready, fire, aim,” I say. You can plan to reinvent your life in retirement overseas…or you can launch a new life overseas and then make some plans.

Reason Not To Retire Overseas #3: “I don’t want to leave my home and family for good.”

So don’t. The real beauty of reinventing your life in a new country today is that it is an infinitely customizable idea. Keep your home in the States if you want and spend part of your time, as your comfort level allows, somewhere exotic and sunny. Establish a second base somewhere foreign…or try out a different overseas locale each year. Come and go as you like, as often as you like, knowing that you’ve always got a safety net “back home.” There is no right or wrong strategy for how to retire overseas.

Reason Not To Retire Overseas #4: “I need to earn a living.”

In today’s world, with a little imagination and self-confidence, you can earn a living anywhere. In fact, it can be easier today for an American to earn an independent living in a foreign country than in the United States, because you have knowledge, experience, skills, and connections that the locals don’t.

Reason Not To Retire Overseas #5: “I don’t have enough capital to make an international move like this.”

You need precious little. In my new “52 Days To Your New Live Overseas,” I walk my retire-overseas students through a getting-started budget. Take my word for it: If you want to do this, you can pull together the capital you need to make it happen…because, seriously, you don’t need a lot.

Reason Not To Retire Overseas #6: “I don’t speak the language.”

I’m not a linguist. And I understand–it gets harder to learn a language as you get older. That’s why you’re lucky. You speak English, and English is the world’s language. Across much of this planet, anyone who is anyone (that is, anyone you might want to communicate or do business with), as well as any school kid, speaks English.

That said, it’s worth noting that learning a new language is one of the best ways to keep your brain limber as you age.

Reason Not To Retire Overseas #7: “I’m too old.”

Are you dead? If not, then you’re not too old.

Yes, it’s easier and might seem more sensible to take a seat on the front porch and await the arrival of the Grim Reaper. Or maybe your life is already so exciting and wonderful that you can’t handle a little change?

If that’s not the case, then I’d recommend that you take a cue from my friend Jules, who is 88-years-old and making plans right now for his move from Florida to Belize. Even after a lifetime of adventure, traveling the world with the U.S. Navy, Jules is up for another change and a new start.

Reason Not To Retire Overseas #8: “I’m too young.”

As I said, in today’s world, if you’ve got a laptop and an Internet connection, you can earn an income anywhere…and concern over making a living is the only objection I can imagine someone younger than retirement age could possibly suggest for why he (or she) isn’t jumping at a the idea of launching a new life in some sunny, sexy foreign locale.

I promise you that, no matter how old you are right now, if you make this move, you won’t regret a day that follows. If you don’t, eventually, you’ll grow to regret every day of adventure that you missed.

Reason Not To Retire Overseas #9: “I’ve got to wait for my children to finish their schooling.”

Why? Speaking as a mom who has spent the last 13 years raising two children (the second, my son, born in Ireland) across four countries, I can tell you with confidence that a life abroad is one of the greatest gifts you can give your kids. They might object at first (my daughter, born in Baltimore, cried her way through our entire first year living overseas, in Ireland), but, in time, they’ll grow to love the life and to appreciate the effort you’ve made providing it for them. Stay put “for the sake of the kids,” and, when they’re grown and discover what they missed out on, they won’t forgive you.

Kathleen Peddicord

Founder and Publisher Live and Invest Overseas

http://www.liveandinvestoverseas.com

—————————————————————————————————————————————

See More of Kathleen’s Special Reports:

• Live & Invest in Panama
  
• Around Asia
  
• The Argentine Vineyard Buyer’s Guide
  
• Panama Without The Sugar Coating
  
• Belize Report & The Belize Starter Kit
  
• Top Health Insurance Options For The Retiree Abroad

By JW Jones, optionstradingsignals.com

Take calculated risks. That is quite different from being rash.
– George S. Patton –

Last week silver was the focus of incredible price swings which left many licking their wounds and shaking their heads at the trading losses they had incurred. This sell off was likely triggered by the increase in margin requirements for futures contracts, but the stunning price decline extended to all vehicles like exchange traded funds use to trade the glimmering metal.

I recognized the potential opportunity early in the week, and began to look at various position structures using options on Tuesday morning. In order to understand the thinking behind this trade, it is necessary to understand the concept of implied volatility of an option contract. Implied volatility, together with time to expiration and price of the underlying security, form the three primal forces that rule the world of option pricing. This measure of volatility is best described as the collective opinion of traders as to the future volatility of the price of the underlying. Implied volatility is the variable which determines if options are priced cheap or overvalued.

One of the fundamental behavioral characteristics of options is the reaction of implied volatility to rapid price change. As a general rule, implied volatility goes down as the price of the underlying increases and vise-versa. Another functional characteristic is that it tends to revert to its historic mean once rapid price movements have moderated and actual price volatility returns to its historic range. The chart below is from a historical database of SLV implied volatility. Note the dramatic rise, indicated by the blue line, beginning in mid April and reaching historically unprecedented levels in early May.

Books have been written to describe details of various option trade structures, and a discussion of all potentially useful strategies is beyond the scope of my mission today. Suffice it to say that individual trades can be structured to respond either positively or negatively to reductions in implied volatility. Given the extremely elevated state of the SLV implied volatility, which side would you want to take?

Hint: Volatility doesn’t remain elevated forever. A well-established characteristic of implied volatility is its tendency to revert to its historic mean.

The trade structure I chose to use was that of a calendar spread. This two legged spread is constructed by selling a short dated option and buying a longer dated option. The options selected to construct each spread are at the same strike price and are of the same class, either puts or calls. Maximum profit of each spread occurs at expiration of the shorter dated option when the price of the underlying is at the strike price of the spread. The main profit engine for this spread is the more rapid time decay of option premium in the shorter dated option relative to the longer dated option.

My trade plan was to buy the May monthly option series which had 18 days of life remaining and sell the weekly options, an option series with only 4 days of life remaining when the trade sequence was started. An essential part of my plan was to adjust the spread as required by price movement to keep in the profit zone of the P&L curve.

It is important to recognize the “secret ingredient” of the spread that put the wind at my back; this special ingredient was the much greater implied volatility of the option I was selling compared to the option I was buying. In the language of the option trader, this situation is termed a positive “volatility skew”. This positive volatility skew increases our odd of success because we are selling a richly priced option and buying a more reasonably priced option; the old adage of “buy low, sell high” applies to volatility as well as price.

The trade that I will discuss began mid-morning on Tuesday, May 3 when SLV was trading around $42.50. My opening traded was to establish the calendar spread at the 42 strike, in options peak, this is known as an at-the-money calendar spread. The opening trade is displayed below:

Price continued to decline for the next several hours and by mid afternoon, SLV was trading around $40. This rapid decline was beginning to approach my lower breakeven price point at $39.24 and I felt I needed more room to allow for price action movement. At this point I chose to add an additional calendar spread at the 38 strike using puts to create a double calendar spread. The resulting trade lowered my breakeven point on the low side from the original $39.24 to $36.21. The new spread’s profitability curve is graphed below:

Price action the next day, Wednesday May 4, was a bit more subdued, and price remained within my profitable zone. Time decay of the short option premium was accelerating and no further action was required. All systems were “go”.

The following day, Thursday May 5, price movement resumed its rapid decline and price had moved beyond the profitable zone of our double calendar spread. Action was required; “wishing and hoping” in these situations is strictly not allowed The original position needed to be modified in order to re-establish a new zone of profitability surrounding the current price of SLV. Because SLV had moved well below the lower breakeven point of the double calendar, radical surgery was necessary. I chose to remove the entire position and re-center the spread. I closed both the 42 call calendar and the 38 put calendar and bought 2 put calendars at the 34 and 35 strikes. As Thursday ended, I had the position illustrated below:

Price movement during the next day, Friday, remained within the range of $33.60 to $35.57. These price extremes for the day were within our limits of profitability of the new double calendar. I closed the spread by mid afternoon when the time premium of the options I had sold short had largely eroded.

This trade had a profit of 15.9% net of commissions for trade duration of approximately 72 hours. I think the lesson to be learned from this trade is that a knowledgeable option trader can survive and prosper in a variety of market conditions. This demonstration is, I think, an example of the tremendous power of options to mitigate risk and provide controlled risk trading opportunities in fast moving markets.

This trade has been part of a strong period of performance for members at OptionsTradingSignals.com. Recent performance has been outstanding as 6 out of 7 trades have produced profits while the final trade remains open. The following returns are based on trade entry and executions. Commissions have not been factored in as option commission structures are different and members may have received a better or worse trade execution. With that said, the gross returns are listed below:

GLD Call Calendar Converted To Vertical Spread – 58%
RUT Call Calendar Spread – 12%
SPY Call Vertical Spread – 32%
SLV Call Calendar Spread Converted to Double Calendar Spread – 18%
AMZN Call Calendar Spread – 37%
SLV Call Calendar Spread Discussed Above – 20%

The cumulative return of the most recent 6 trades is 177%. Obviously the recent track record has been strong and the overall return for members would differ based on position size, risk tolerance, and account size. Since the beginning of the service in December, the overall win / loss record is 14 winning trades, 1 breakeven trade, and 8 losing trades. The overall successful trade percentage based on the trades that have been closed is just shy of 61%. In full disclosure, two trades remain open at this time.

Recently I have used a lot of calendar spreads due to the low volatility environment we have been trading in. The trade constructions that I use adjust based on volatility levels of underlying assets and the VIX index in general. Essentially the service does not use the same trades over and over unless the volatility environment is little changed. Recently we have had consistently low volatility levels and calendar spreads have been attractive. In the future, volatility levels will likely change and other trade constructions would be warranted at that time.

The special offer currently being presented to new members is an extreme value. Most long term members have pointed out that they would be willing to subscribe just for the daily technical analysis provided as well as the 2 – 3 weekly videos that members receive that contain technical analysis of key indices, futures, and ETF’s. My primary focus is to deliver value to members beyond just solid trade management and performance.

I am focused on performance, but my greatest thrill is watching novice option traders start to learn how to trade options in spreads effectively and for consistent profits. Options are one of the most overlooked trading tools in financial markets and the power they offer individual investors is consistently overlooked. Options are more than just hedging tools; they offer individual investors the power to diversify away from standard assets.

Come join me at http://www.optionstradingsignals.com/specials/index.php and learn to harness the power that options offer investors and traders alike!

JW Jones

When I was a kid, I used to play soccer in the alley behind our house with the neighborhood kids. It was a narrow lane, so we didn’t have much room. And the goals were pretty small, too. We made a rule that we wouldn’t play with goalkeepers. No one would ever score if someone could just stand in front of a two-foot goal.

More often than not, one kid would end up drifting back and standing in front of the tiny goal. Boy would we get mad!

But that kid wasn’t really aware of what he was doing. He knew the rules, he just defensively kept sliding back.

I think investors are starting to do the same thing with government bonds.

Consider this:

Treasuries prices rose on Friday, helped by stock losses, Fed purchases of Treasuries, and relief U.S. inflation data did not come in above forecast.

Government bond yields have been back on the rise… But U.S. Treasuries aren’t the best place to park your money.

A 10-year note will give you 3.187%. It’s true — government bond returns have been climbing from bottom-of-the-barrel lows, but you can still get a better return from other areas in a lot less time.

Of course, investors are willing to pay a lot of money for a small yield if they feel their money is safe from any decline, but even government bonds aren’t safe from drops in value anymore. In the fourth quarter of 2010, U.S. Treasury-issued bonds handed investors a 2.7% loss, and in the first quarter of this year, they added another 0.1% loss to the pile.

U.S. inflation alone could wipe out any gains you might get from investing in Treasury bonds.

So here are three specific areas that will give you a better return than the 10-year Treasury note.

High-Dividend Stocks

Nine out of the top 10 holdings of the PowerShares High-Yield Dividend ETF (PEY:NYSE) have a higher yield than the 10-year Treasury note. The lowest dividend of the bunch is 4% and the highest is 6.8%.

Of these top 10 holdings, there are four companies that have performed well over the past year:

• CenturyLink, Inc. (CTL:NYSE) — a communications company up 24.29%
• Altria Group, Inc. (MO:NYSE) — a cigarette company up 26.38%
• AT&T, Inc. (T:NYSE) — a telecom company up 23.66%
• Vectren Corp. (VVC:NYSE) — a Midwest utilities company up 17.66%

These four companies have dividends of 6.8%, 5.6%, 5.5% and 4.9% respectively. Not too shabby when you consider that their share prices have been climbing.

Choosing any of these companies would give you an automatic return that’s higher than the 10-year Treasury note… in a single year.

Safe CDs

CDs can have different time frames. Some have a three-month term, and others have a five-year term. Each is different, and each has its own return. They can give investors access to lots of different kinds of investments, from commodities to stocks to currencies.

The flexibility of a CD is very attractive to traditional bond investors, and a special kind of CD offered by EverBank should have you drooling.

It’s called a MarketSafe CD. This kind of CD protects your principal investment. That means you can’t lose money. But the upside potential is much much greater than the 10-year Treasury note yield.

EverBank offers two different MarketSafe CDs — one based on five different metals and the other based on 10 different commodities. They both have a term of five years. And you have to buy in before June 9, 2011.

They are the MarketSafe Diversified Commodities CD and the MarketSafe Timeless Metals CD.

Over the next five years, could commodities lose value? Sure, it’s possible, though not likely. But if they do, then 100% of your investment is protected.

*Editor’s Note: We firmly stand behind EverBank and their products and think they are a solid way to grow your wealth. But you should know that we also have a business relationship with the company and receive a financial benefit from the sales of this product.

Inflation-Proof Stocks

Another way to beat the tiny 3.187% yield is to invest in inflation-proof stocks. These are companies that can pass their higher costs onto the consumer. That means they are riding the U.S. inflation wave instead of being flattened by it.

(Investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let me and my fellow editor Jared Levysimplify the stock market for you with our easy-to-understand investment articles.)

This group of companies includes service providers and producers of consumer staples. They also include blue chip companies. Companies like MasterCard (MA:NYSE) and Wal-Mart (WMT:NYSE) and even AT&T (T:NYSE).

Safe Haven Investor editor Kent Lucas had this to say about AT&T in his April issue:

It’s a blue chip name. Research has proven blue chip, or higher quality, larger (capitalization) companies tend to do well in inflationary environments. Blue chip companies are often better run with a competitive advantage and an attractive business model that does relatively well compared to lesser companies…

Simply stated, there is a flight to quality as inflation fears rise.

Combine Strategies

If you can find a company that is an inflation-proof stock and a high-dividend stock, you’re really in the money. AT&T is just such a company. It’s climbed nearly 24% in the past year and offers a 5.5% dividend.

Altria Group is in the same boat, if you don’t have any qualms about investing in a cigarette company.

It’s hard to pass over companies like these for pricey, low-yielding bonds.

The point is, drifting back to bonds, just like that kid in the alley during our neighborhood soccer games, is kind of an unconscious reflex.

U.S. inflation is headed higher this year. Even the Federal Reserve has increased its forecast. That could seriously eat away at the ultra-conservative returns that longer-term bonds offer.

There are a number of different opportunities out there that can give you much better returns than the 10-year note.

P.S. News has just hit the airwaves today that IntercontinentalExchange (ICE:NYSE) and Nasdaq OMX Group (NDAQ:NASDAQ) have taken their bid for NYSE Euronext (NYX:NYSE) off the table. This means a big drop in share prices for NYX. I first told subscribers about this company back in September 2010 at our annual conference, and talked about it again in mid-January 2011. At that time, shares were trading for around $33 a share. On Friday, shares closed at $40.89, but opened about $4 lower on Monday. This action hacks any gains made from mid-January in half, and if you’re using a tight stop-loss, you probably got booted out of your position.

If you weren’t using a stop-loss, now might be the time to get out with some gains. This news may ultimately be good for NYX, but in this topsy-turvy trading environment, it’s best to take gains while you can. Do so with NYX.

*Editor’s Note: Safe Haven Investor editor Kent Lucas had a lot more to say in his April issue. Subscribers can find the full issue online, but if you’re not a member, you can learn more about Kent and Safe Haven Investor here.

Article brought to you by Taipan Publishing Group. Additional valuable content can be syndicated via our News RSS feed. Republish without charge. Required: Author attribution, links back to original content or www.taipanpublishinggroup.com.

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Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.

Today’s consumer price index (CPI) out of the euro zone affirmed the stable growth in prices among the members of the European Monetary Union (EMU). Regional CPI was on target with 2.8% growth, year-on-year, and its core counterpart was partially above forecasts with a 1.6% growth reading.

Traders have been pulling away from the EUR these two weeks after remarks by the European Central Bank (ECB) left many speculators uncertain about the timing of the next interest rate hike. The result of this uncertainty has been for the EUR/USD to push back towards 1.40 in today’s early trading.

Steady inflationary figures, with growth mildly above expectations, is one means of pressuring the ECB to consider lifting rates and thereby tightening its monetary policy. Traders involved in the forex market appear to have been hesitant to push the EUR outside of its bullish channel against several currencies, but this week’s early movements may prove to be a breaking point for the 17-nation common currency.

The euro will be strangely absent from the economic calendar this week, but Friday will see the publication of Germany’s producer price index (PPI). This figure will reveal another aspect of the inflationary levels in the region, but so far this week the EUR remains bearish.

Read more forex trading news on our forex blog.

Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.

The Australian dollar’s (AUD) meteoric rise over the past several years is something to be desired by other countries. However, not every nation is isolated from market turmoil and this morning’s reports showed how even Australia is subject to cyclical market contractions.

Two reports were released by the Australian Bureau of Statistics this morning at 2:30 GMT. One was a significant report which measured the percent-change in home loans for the month of April. This figure was expected to show solid growth of 2.3%, month-on-month, for the Australian housing sector but instead revealed a 1.5% contraction since March. The previous month’s 4.7% decline looks worse by comparison, but highlights the fragile nature of the housing market in Australia.

The second report was a less significant data release regarding new motor vehicle sales. It was a figure which measured the change in number of vehicles purchased since the previous month. It acts as a leading indicator of consumer optimism since the purchase of physical assets tends to represent a brighter outlook for personal income and spending levels. It also correlates to bank loans and consumers’ application for financial assistance from banking institutions.

The new vehicle sales report, like the housing data, also revealed a contraction, but by a stark 3.5%. The downturn from both indicators signals a substantial decline in consumer confidence in the Australian economy.

With fewer individuals applying for home loans and fewer Aussies purchasing vehicles, it appears more are opting to save their income as opposed to investing in physical assets. The AUD so far appears a bit shaken and could see some bearishness this week if other data doesn’t grant it some support.

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