Continental Resources (NYSE:CLR) announced Wednesday plans to purchase $340 million for property in the Bakken Shale.In the deal, Continental will issue between 3.9 million and 4.25 million of its shares at $80.00 and $87.18.Continental Resources (NYSE:CLR) has potential upside of 7.5% based on a current price of $86.55 and an average consensus analyst price target of $93.
By TraderVox.com
Tradervox (Dublin) – A report from the Office for National Statistics showed that the UK economy shrunk more than it had been expected in the last quarter forcing the sterling pound to decrease against the euro to five month’s low. This has been construed to mean that the government will now be considering more seriously about another round of asset purchases to accelerate growth in the country.
The sterling pound fell against the euro and the dollar for the second day paring its gains since the start of the year. The statement also showed that the household disposable income also decreased over the last quarter indicating that the UK economy is struggling to recover from the aftershocks of the Euro crisis. The country is on the risk of losing its AAA credit and investment rating from Fitch and Moody’s respectively.
According to Mervy King, the Bank of England Governor, the economy might be in need of another quantitative easing operation in order to jump start economic recovery in the country. The BOE Governor indicated that he has an open mind about the prospect of another asset purchases program. Some analysts have talked about the disappointing report saying that this has put the sterling pound on the “back burner.”
The sterling pound weakened by 0.6 percent to trade at 83.95 pence per euro, this is registered as the biggest drop since February 22. The pound then dropped further to trade at 83.88 pence per euro which was 0.5 percent during the London session. The sterling pound also dropped against the dollar by 0.7 percent to trade at $1.5847; the pound had increased by 2.1 percent against the dollar over the last three months.
The Office for National Statistics indicated that the Gross Domestic Product (GDP) dropped by 0.3 percent in the last quarter which higher than what analysts were expecting, which was a 0.2 percent decline. This now marks a second successive decline in the UK economy putting more pressure on the BOE to take strong measures to put the economy back on track.
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This is what’s in the news for Tuesday March 27, 2012. The Wall Street Journal reports Fed Chairman Ben Bernanke said the central bank’s easy money policies are still needed to confront deep problems in the labor market, as he reinforced his plan to keep interest rates low for years. The Wall Street Journal also reports Rio Tinto (NYSE:RIO) is looking at options for exiting its diamond operations, similar to a move by BHP Billiton (NYSE:BHP). Reuters reports Apple (NASDAQ:AAPL) supplier Hon Hai Precision Industry Co. is taking an 11% stake in Sharp Corp. (PINK:SHCAY). Reuters also reports talks to sell a stake in Britain’s state-owned Royal Bank of Scotland (NYSE:RBS) are being held at the level of the Abu Dhabi ruling family, sources say. Finally, Bloomberg reports with the likelihood that Express Scripts (NASDAQ:ESRX) will acquire Medco Health Solutions (NYSE:MHS), SXC Health Solutions (NASDAQ:SXCI) is becoming the industry’s priciest takeover candidate.
By MoneyMorning.com.au
Yesterday we left you with a cliff hanger:
“So, what is the path to freedom and prosperity? The After America investment symposium had the answer to that…
“Your only option is for you to take care of yourself and your family.
“How do you do that?”
Today we’ll show you how to help build your family’s wealth.
Remember, we aren’t God (in case you thought we were).
We can’t tell you exactly what will happen and when it will happen. And we can’t even guarantee our strategy will work.
All we can do is give you our best analysis and advice based on what we know of the markets and market behaviour.
Whether you take the advice is up to you.
We know only a few will follow it. The rest will decide to leave it for another day… or conclude we’re crazy and tell us to stop bothering them with our paranoid ramblings.
How do we know that? Because we’ve had first-hand experience of it…
We get letters all the time asking to be unsubscribed from Money Morning. So we unsubscribe them. And we wish them well.
As for those who leave things for another day. We’ve seen that too.
At the “After America” investment symposium we asked attendees to download and read two short essays and one short extract. We suggested they download these during the lunch break. And read them over the buffet sandwiches and mini chicken pies.
It was easy. All the essays are available to download free from the Internet. Anyone with an Internet-enabled mobile device could get the documents in seconds.
The essays and extracts are:
I, Pencil by Leonard E. Read
Richard Maybury’s “Cult of the Masterminds” essay
Chapter 1.3 of Murray Rothbard’s Man, Economy & State (the Ham Sandwich)
The next day, during the two breakout sessions, we asked how many had downloaded and read them.
One lady raised her hand… out of 247 attendees.
Does that tell you anything? Maybe 246 people just had no interest in reading these essays. Although we don’t think that’s true as many said they would get around to it.
No. The point is, it’s easy to put something off. The procrastinator’s mantra is: Why do today, what you can do tomorrow?
That same attitude infests the brains of many Aussie investors. They figure if they don’t do something today or the next day, it doesn’t matter, because worst case, at least the government will help.
Wrong. Ask any pensioner today who can’t rub two pennies together, what life is like on the pension. They’ll tell you they wished they’d done more.
Of course, it’s not all their fault. They just fell for the government spin that they’d be cared for in old age.
But the fact is, the government won’t look after you. The only one who can look after you… is you.
One attendee at the After America investment symposium told us he was worried about the future for his two daughters. He said he wanted to give his daughters some books to read so they could understand what’s happening to the world economy.
His daughters are in their 20s and 30s.
Our advice was simple. He should suggest they read a couple of books (Henry Hazlitt’s, Economics in One Lesson was one of them). But if they don’t look interested, don’t press it.
As we say, the only one who can look after your wealth is you. If your family members choose not to look after their wealth, you can’t force them.
But that doesn’t mean you can’t help… subtly.
If you can afford it, why not save for yourself and save for them too. Even if they’re all grown up. Obviously, it’s better to start when they’re young, but in reality, it’s never too late.
You can start by saving money in a bank account for them. But that shouldn’t be the end of it. If you believe in sound money, then give them sound money as a gift.
We don’t mean for their birthday or Christmas. Just an “I-thought-you’d-like-this” kind of gift.
Buy them a silver coin from the Perth Mint or any bullion dealer. At today’s prices, a one-ounce coin is $40-$50. Tell them it’s pure silver. They’ll enjoy it. And chances are they’ve never seen a silver coin before. So they’ll be curious.
One day (who knows when), they may even ask you how much it’s worth. Or how it can be worth $40 when it only has $5 printed on the coin.
Then you can start explaining the value of money. The important part is, if you do it this way then you’re talking about it on their terms. They won’t see you as an old crank, hoarding your silver coins under the floorboards.
Again, don’t stop there. Keep saving.
When you’ve saved $500, think about opening a stockbroking account. You can buy shares in a company for them. If they’re under 18, you’ll need to hold the shares in your name.
Only a government would make it illegal for under-18′s to invest. We guess they hope the longer they can prevent people from investing, the more likely they are to not want to invest… and therefore look to the government for support.
Now, as far as stocks are concerned, our shtick is small-cap stocks. But for the first investment, we’d suggest something less exciting. Say, a good dividend stock.
If the stock pays a 5% yield, that’s $25 a year they’ll get in extra pocket money. It’s not a lot. But it’s a start.
Remember, thanks to government laws (supported by trade unions) that make it hard for youngsters to get part time work (minimum hours and minimum wages), they need to come up with new ways to earn a living.
So, rather than giving them pocket money, why not invest a few hundred (or thousand) dollars for them. And let one of Australia’s blue-chip companies pay pocket money to your kids instead?
That’s not a bad way to teach them about saving and earning an income.
And maybe one day they’ll ask why or how the company keeps sending them money… for doing nothing. That’s your chance to explain about capitalism and profits and how this is what creates wealth and prosperity.
With any luck, you’ll help nurture the next generation of entrepreneurs. Or at the very least, a generation that has learned about how markets work and how to make money.
So that by the time they become responsible for themselves, they’ll know the path to prosperity doesn’t involve relying on the government.
If they’re already adults, think how great it would feel when the light bulb goes on and they tell you they finally “get it”.
Bottom line, it’s about getting yourself in order first. Once you’ve done that, you can help your family get in order too.
Of course, if you can’t be bothered or you think the government will look after you, then good luck. Let us know how you get on.
But if you don’t want to risk that. Then take our advice. What do you have to lose? If you take care of yourself and help take care of your family, you can be sure the wealth will follow…
Cheers.
Kris
Related Articles
The Conference of the Year “After America” DVD
How to Avoid the Welfare State Hunger Games
A Better Inflation Bet Than Gold?
By MoneyMorning.com.au
Less than six months ago, the American government was begging for an increase to the debt limit. At the eleventh hour, the US debt ceiling jumped from $14 trillion to $16.394 trillion. At the time, the administration promised the increase in spending would see the pollies through until 2013.
However, a few people (see below) have been crunching the numbers. And it turns out, the increased debt ceiling won’t last as long as they’d planned. Or hoped. Or said it would.
The outgoing Treasury Secretary, Tim Geithner, acknowledged this. But he doesn’t think anyone should worry, as the limit won’t happen until ‘late in the year’.
But Senator Rob Portman of Ohio isn’t so sure.
He told the Examiner in Washington,
‘Following the contentious debt ceiling last August, President Obama promised that he would take action to address the country’s fiscal crisis. He failed to do that. In fact, his new budget increases spending and projects that Washington will be hitting the debt ceiling again in mid-October – burning through a $2.1 trillion debt limit increase in just over 14 months.’
By his numbers, the debt will be $16.334 trillion as of September 2012, $60 billion below the limit. And in 15 more days, the government will reach the limit of $16.394 trillion dollars.
However zerohedge.com reckons the government will burn through the cash much sooner.
‘…at the current rate of debt issuance, which incidentally is going to accelerate sharply due to the recent extension of the payroll tax cuts which will require an incremental $100-150 billion total debt to be funded, and extrapolating future issuance solely on historical patterns, the US debt ceiling D-Day will be September 2012.’
That’s three very different time frames. But they all have something in common. Before the election the US will increase the debt limit.
Which, for you, gives you some time to buy gold.
Now why would you want to buy gold right now, considering the price is going lower, not higher?
Simply because when the debt limit rises, so does the price of gold.
Every time the US the raises the debt ceiling, the price of gold follows.
And this chart doesn’t show the gold price AFTER the limit was increased to more than $16 trillion.
Within days of the higher limit, spot gold reached a new high of USD$1,889.70. Even though the price retreated slightly after that high, the price still managed a 12% gain for the month of August.
Three different sources have confirmed that the US government will need to increase the debt ceiling limit in six months.
If you were waiting for the ‘right time’ to buy gold, it’s here. Take advantage of the lower price while you can.
As the debt limit draws closer, the price of gold should rise.
Shae Smith
Editor, Money Morning
From the Archives…
A Better Inflation Bet Than Gold?
2012-03-23 – Kris Sayce
3D Printing: How “Desktop Factories” Will Create the Next $1 Trillion Industry
2012-03-22 – Michael Robinson
How to Invest in the Fastest-Growing Energy Business of the 21st Century
2012-03-21 – Aaron Tyrrell
Why You Should Build Your Wealth Using the Biggest BRICS Possible
2012-03-20 – David Thomas
Oil Getting Ready For Its Next Rally
2012-03-19 – Dr. Alex Cowie
By MoneyMorning.com.au
You’ve no doubt heard about the building scarcity of water. It’s the reason savvy shareholders have been busy investing in water stocks.
Here’s why.
Water may be everywhere but only 3% of it is fresh or suitable for drinking. Two-thirds of that is locked in glaciers and polar icecaps, which means less than 1% of the world’s fresh water is available for human use.
That’s the water found in lakes, rivers, reservoirs, and underground sources shallow enough to be accessed cheaply. Even still, much of that is polluted or otherwise unsuitable for consumption.
The water that’s left is then used in agriculture and industry, and here’s the kicker: It is divided between seven billion people… and demand is increasing all the time.
According to the United Nations, in the last century water use has increased at more than twice the rate of population growth.
Water has become so critical that Willem Buiter, chief economist at Citigroup, believes it will soon become “the single most important physical-commodity based asset class, dwarfing oil, copper, agricultural commodities and precious metals.”
That may be hard to imagine, considering we can simply turn on the tap and get fresh water for next to nothing.
But it’s true. There are myriad of factors – from population growth to climate change – putting a strain on the world’s water supply and causing demand to spike.
We’ll look at those factors and how investors can benefit from this growing demand by investing in water stocks.
Investing in Water Stocks: Profit From Rising Demand
The biggest factor in the increasing scarcity of water is agriculture.
In 2012, American farmers will plant more crops than in any year since World War II. After two years of declining yields, this is good news for the agriculture industry, which is seeing commodity prices rise right along with global demand.
Around the world, the picture is much the same. China and India, too, are planting more this season.
The gigantic thirst for agricultural commodities this year means it will also be a huge year for water usage.
According to a study conducted by the University of Twente in the Netherlands, agricultural uses account for 92% of the global water footprint, a broad measurement that aims to quantify global water use and consumption.
What’s more, fresh water pollution from agriculture is a worldwide problem that causes billions of dollars in damage. In developing countries, where fewer environmental regulations exist to protect the water supply, nitrate and phosphate levels are expected to rise steadily over the next few decades.
That will put further strain on the water supply – right in the places where demand for water is expected to increase the most. That means emerging markets.
That’s because on average, each person in the U.S. uses 100 to 150 gallons of water every day, according to the Environmental Protection Agency. But in places like China and India, the average is closer to 20 gallons per day.
In fact, China and India already have the two largest water footprints of any country on the planet. And they’re about to get even bigger as their consumption of commodities skyrockets – water included.
The surging demand for water in these emerging markets is going to require better “water solutions,” or innovative ways of filtering and treating water to make it drinkable.
Better infrastructure to deliver fresh, clean drinking water to billions of new middle class citizens is also going to be needed, including filters, pumps, pipelines, and new processing plants.
That makes the growth in water stocks inevitable as billions of dollars is spent to meet demand.
Given the scarcity, the sums are tremendous.
According to the Organisation for Economic Cooperation and Development (OECD), global investment in water supply infrastructure needs to increase by nearly $500 billion by 2025.
While some of that money will go to fixing aged infrastructure in the West, much of it is going to be needed to manage increased demand in emerging markets like Asia, Latin America, and Africa.
Invest in Water
A great way to gain exposure to water stocks is to buy companies that deliver it.
Another way to invest in water is through companies that create solutions to the problems of tapping, pumping, filtering, and delivering water to millions.
Either way, you don’t realize the wealth of the water until it’s gone. Investing in water stocks is going to be one of the market’s great long-term trends.
Patrick Vail
Contributing Writer, Money Morning (USA)
Publisher’s Note: This is an edited version of an article that first appeared in Money Morning (USA).
From the Archives…
A Better Inflation Bet Than Gold?
2012-03-23 – Kris Sayce
3D Printing: How “Desktop Factories” Will Create the Next $1 Trillion Industry
2012-03-22 – Michael Robinson
How to Invest in the Fastest-Growing Energy Business of the 21st Century
2012-03-21 – Aaron Tyrrell
Why You Should Build Your Wealth Using the Biggest BRICS Possible
2012-03-20 – David Thomas
Oil Getting Ready For Its Next Rally
2012-03-19 – Dr. Alex Cowie
For editorial enquiries and feedback, email [email protected]
Source: ForexYard
Even though we saw the U.S Dollar show some gains over the Euro during Wednesday’s trading, news out of the Euro-zone has been comforting for the 17 nation currency.
The Euro was 0.4% shy of a one-month high after European finance ministers are reportedly set to discuss plans of increasing the rescue fund.The Euro was preparing for its first quarterly gain against the Greenback since June prior to data reports out of Germany, the region’s largest economy that unemployment in the region was it its lowest in 20 years.The figures showed that the number of people out of employment dropped 10,000 from the month of February.
A draft statement written for European finance ministers showed the goverments in the region are preparing for a one-year increase rescue aid to 940 billion euros to keep the debt crisis under control.
Meanwhile, the safe-haven commodity gold showed a drop of 1.6% as the yellow metal failed to breach the $1,700 mark.
As some of you may or may not know,gold and the US dollar have a very interesting connection. Both known as market safe-havens in times of uncertainty or economic difficulties, but the real connection is when the Greenback strengthens, the metal weakens and visa-verse.
Yesterday’s trading saw the dollar make some gains over some currency counterparts which had a negative affect on gold prices.
Protests in India against tax hikes on non-branded gold jewellery as well as gold imports have gone into their second week on Wednesday which is contributed to the drop in gold price occurring late Wednesday. India is the World’s top gold consumer, and the protests are reportedly frustrating imports during a time where the metal is at a high demand.
Forex Market Analysis provided by ForexYard.
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KKR (NYSE:KKR) is rumored to soon name ex-Morgan Stanley (NYSE:MS) CEO John Mack as a senior adviser, a person familiar with the situation told Bloomberg.The KKR roaster includes former executives like Caterpillar (NYSE:CAT) CEO James Owens and Bertelsmann’s former co-chairman Richard Sarnoff.The source declined to be identified before the official announcement.KKR & Co (NYSE:KKR) has potential upside of 18.4% based on a current price of $14.57 and an average consensus analyst price target of $17.25.
After touching 1.5991 previous high resistance, GBPUSD pulled back from 1.6000, suggesting that a cycle top is being formed on 4-hour chart. Initial support is at the lower line of the price channel, and the key support is at 1.5770, as long as this level holds, uptrend from 1.5602 could be expected to resume, and another rise towards 1.6300 is still possible. On the other side, a breakdown below 1.5770 will indicate that the uptrend has completed at 1.6000, then deeper decline to test 1.5602 support could be seen.
Stocks fell into negative territory today, led by materials and energy shares. On the economic front, durable good orders rose 2.2 percent, according to the Commerce Department.
