Tesla: Bonfire of the Money Printers’ Vanities

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Tesla: Bonfire of the Money Printers’ Vanities By David Stockman, Former Director of the Office of Management and Budget David Stockman needs no introduction, but I’ll give him one anyway. He’s a former US Congressman who, upon assuming responsibility as Ronald Reagan’s budget director in 1981, became the youngest presidential cabinet member of the 20th century. Following a 20-year career on Wall Street, David is now an outspoken critic of government stupidity. He argues on behalf of outdated notions like a balanced budget, free markets, and for the government to just plain leave us alone. Below, David shares a scathing financial analysis of Tesla… and that’s putting it nicely. He argues that Elon Musk’s company is a crony capitalist creation that owes its very existence to government handouts and bailouts. Dan Steinhart Managing Editor of The Casey Report Editor’s Note: This article was originally published in Casey Daily Dispatch’s Midweek … Continue reading

Could Apple Buy a Third of the World’s Gold?

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February 27, 2015 By Frank Holmes CEO and Chief Investment Officer U.S. Global Investors Is there anything Apple can’t do? First it revolutionized the personal computing business. Then, with the launch of the iPod in 2001, it forced the music industry to change its tune. Against initial market reservations, the company succeeded at making Star Trek-like tablets hip when it released the iPad in 2010. And in Q1 2015, a record 75 million units of its now-ubiquitous iPhone were sold around the globe. The smartphone’s operating system, iOS, currently controls a jaw-dropping 89-percent share of all systems worldwide, pushing the second-place OS, Google’s Android, down to 11 percent from 30 percent just a year ago. As you might already know, the company that Steve Jobs built—which we own in our All American Equity Fund (GBTFX) and Holmes Macro Trends Fund (MEGAX)—is history’s largest by net capitalization. In its last quarterly report, Apple posted a record … Continue reading

Investing Inertia Won’t Keep Your Cash Safe

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Investing Inertia Won’t Keep Your Cash Safe By Dennis Miller A dear friend asked for help—the sort of help you might need too. She’s retired, lives alone, and has a modest nest egg. But the thought of losing any of her life savings terrifies her. Let’s call my friend “Sally.” Sally doesn’t trust stockbrokers or any commission-based investment advisors, and she confided that all of her money is in a cash account, earning 0.01% interest. Sally understands that at that rate, she’ll likely outlive her nest egg. She knows she needs to do something but is understandably afraid and feeling vulnerable. Sally played my own warnings right back to me… The stock market is near an all-time high. The government, not solid business fundamentals, is propping up the stock market. Junk bonds have a higher rate of default than top-quality bonds and are currently paying some of the lowest interest … Continue reading

The 10th Man: I Heart Capitalism

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The 10th Man: I Heart Capitalism By Jared Dillian   Let me begin by saying that if you aren’t on Twitter, you’re making a huge mistake. I was encouraged to get on Twitter years ago by a tech-savvy friend. There is a learning curve. It’s not the easiest thing to get the hang of. Used correctly, it can make you smarter. If you could take a smart pill to make you smarter, you would take it, right? Get on Twitter. So I saw an interesting table on Twitter—someone had taken a photo of a table out of the print version of Barron’s magazine and tweeted it to their followers. I am reproducing it here: Nasdaq, Then And Now Below are the top 10 stocks in the Nasdaq Composite Index. The first thing you notice is that there’s been a huge turnover. Sun Microsystems disappeared, the box business was so bad … Continue reading

Outside the Box: Shovelin’ Schmitt Against the Tide

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Outside the Box: Shovelin’ Schmitt Against the Tide By John Mauldin   There is an obsession in the marketplace over the date when the Fed will once again begin to raise rates. As if another 25 basis points is going to change the economics on tens of trillions of dollars of investments. But as we reflect on the issue more deeply, it becomes obvious that a minor bump in the fed funds rate will indeed change a great deal of economics all over the world. No, it won’t do much to the cap rate on your latest real estate purchase, but it is likely to greatly affect the pricing of the currency and commodity markets. And those markets will affect corporate profits, which will affect the stock market. It’s all connected. And what if the Fed has lost control? What if they are in a no-win situation where raising rates … Continue reading

Foreign Real Estate Is the New Swiss Bank Account

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Foreign Real Estate Is the New Swiss Bank Account By Nick Giambruno Financial privacy is essentially dead. I think it’s only prudent to assume that sooner or later all the details of your financial life will come to rest in a government computer—if they haven’t done so already—and to plan accordingly. We live in a world where pretty much every penny you earn, save, and spend is stored in a permanent record somewhere and can be retrieved for scrutiny one day if needed. It’s not a comfortable or happy thing. But no matter how unpleasant it is, I believe it’s a reality we have to face. Knowing that you are financially naked and exposed to an insolvent government hungry for revenue might make you feel like you just ate rat poison for lunch. That said, don’t be tempted to try to illegally hide your income and skirt reporting requirements. It’s … Continue reading

A Math-Free Guide to Higher and Safer Returns

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By Andrey Dashkov I can make you instantly richer, and safely, by explaining a finance concept with a story about a dog. There’s a hole in your pocket you probably don’t know about. You may feel instinctively that something is wrong, but unless you look in the right place, you won’t find the problem. The money you’re losing doesn’t appear in the minus column on your account statements, but you’re losing it nevertheless. Frustrated? Don’t be. I’m going to tell you where to look and how to stop the drainage. Volatility is every investor’s worst enemy. Over time, it poisons your returns. Unlike a 2008-style market drop, though, volatility poisons them slowly. There’s no obvious ailment to discuss with friends or hear about on CNBC. You only see it when you compare how much you lost to how much you could have earned—and looking back at your own mistakes is not a … Continue reading

Thoughts from the Frontline: Debt Be Not Proud

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By John Mauldin Some things never change. Here is Eugen von Böhm-Bawerk, one of the founding intellectuals of the Austrian school of economics, writing in January 1914, lambasting politicians for their complicity in the corruption of monetary policy:We have seen innumerable variations of the vexing game of trying to generate political contentment through material concessions. If formerly the Parliaments were the guardians of thrift, they are today far more like its sworn enemies. Nowadays the political and nationalist parties … are in the habit of cultivating a greed of all kinds of benefits for their co-nationals or constituencies that they regard as a veritable duty, and should the political situation be correspondingly favorable, that is to say correspondingly unfavorable for the Government, then political pressure will produce what is wanted. Often enough, though, because of the carefully calculated rivalry and jealousy between parties, what has been granted to one has also … Continue reading

Do you own Canadian Stock certificates from a Private Placement or for services?

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February 23, 2015 Editor Note: Dudley Baker has used Penntrade as his brokerage firm for many years and highly recommendations them. Interesting article here which we are passing on to our readership. If you contact them, please tell them Dudley Baker send you. If you are a U.S. Resident who has ever participated in a Canadian Stock Private Placement or received shares for various services, please keep reading. I have been helping many U.S. based investors over the years to deposit, transfer and trade their Canadian stock certificates. A few years ago I even wrote an article on the subject that appeared on sites such as Kitco, 321 Gold, Gold Seek etc. Overall the process is not as painful as one would think.  How to Sell Restricted Canadian Stock in the U.S. – A 4-minute Briefing – http://www.pennaluna.com/selling-restricted-canadian-stock-in-the-u-s/   Feel free to forward my e-mail on to anyone you know that … Continue reading

Doug Casey on ISIS, Gold, Oil, and What to Expect in 2015

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By Louis James, Chief Metals & Mining Investment Strategist Today’s feature is a special treat: a peek into the brain of one of the most successful speculators of all time. In what follows, Doug Casey talks to Louis James about what to expect in 2015. Doug weighs in on today’s most important issues, including ISIS, oil, Putin, and the stock market. He even sticks his nose out to make a bold call on gold. This (usually subscriber-only) content originally appeared in The Casey Report. Enjoy! Louis James: It’s been a long, eventful quarter since we last spoke, Doug. What’s most on your mind as 2014 draws to a close and we look ahead to 2015? Doug Casey: Let’s start with gold, since that’s the main focus we’ve had for so long. The Swiss gold reserve referendum just went down in flames, of course, and that was a big disappointment to many. L: Really? I don’t know anyone who … Continue reading