Healthy Living: The One Thing Warren Buffett Gets Completely Wrong

By Alexander Green Editor’s Note: The battle over healthcare reform is raging in D.C. But we wanted to remind you that one person has far more influence over your well-being than any politician does: you.

Enjoy this essay from Alexander Green’s Beyond Wealth series. No matter where you stand on the new healthcare bill, we think you’ll appreciate this advice.

In several columns over the last few years, I’ve explained why you should listen to Warren Buffett.

In today’s column, however, I’ll explain why sometimes you shouldn’t.

With a net worth of $75.3 billion, Buffett is one of the best investors who ever lived – perhaps the greatest.

But when it comes to the subject of nutrition, he’s an odd-lotter at best.

Buffett is a junk food junkie who admits that he eats like a 6-year-old. He drinks at least five Cokes a day – usually with Cheetos or potato sticks – and sometimes has chocolate chip ice cream for breakfast.

Granted, the man has made it to 86. But as someone who would like to benefit from Mr. Buffett’s wit, wisdom and money management skills for years to come, I wish he’d lend an ear to Dr. Michael Greger.

Greger, a physician and internationally recognized nutrition expert, is the author of How Not to Die.

Greger has not discovered the secret of immortality. (If he had, I’m sure you’d have heard about it.) But he has made it his mission to help Americans prevent, treat and even reverse 15 leading causes of death.

Those are heart disease, lung diseases, brain diseases, digestive cancers, infections, diabetes, high blood pressure, liver diseases, blood cancers, kidney disease, breast cancer, suicidal depression, prostate cancer, Parkinson’s disease and iatrogenic causes.

(Iatrogenic means “caused by diagnosis or treatment by a physician.” Medical errors are the third-leading cause of death in this country.)

Greger argues that these deaths are preventable because they are related, in part, to how we eat. (That includes the iatrogenic deaths. After all, the best way to avoid misdiagnosis or maltreatment in the healthcare system is to not get sick in the first place.)

Some folks believe that premature death is just a matter of bad luck or bad genes. Not so. The evidence shows that only 10% to 20% of the risk of these diseases is related to genetics. Most of the rest is due to a poor diet.

Unfortunately, most people don’t get the advice they need on this important topic from their general practitioner.

Only a quarter of medical schools offer a single course in nutrition. And six out of seven graduating doctors surveyed felt they were not adequately trained to counsel patients about their diets.

When it comes to the profound connection between diet and disease, most of us are on our own.

So let’s start with the basics…

Four simple, healthy lifestyle factors have a strong impact on the prevention of chronic diseases. They are…

Not smoking
Not being obese
Exercising at least a half-hour a day
Eating a healthy diet.

If you can check off all four, Dr. Greger says you’ve reduced your cancer risk by more than …read more

Source:: Investment You

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Exclusive KE Report Commentary – Fri 30 Jun, 2017

By Cory Trader Vic – Now is the time to be extremely conservative

Trader Vic doesn’t believe the numbers we are getting from the government. How can Q1 GDP be revised the whole way from 0.7% initially up to 1.4% currently? With large cap stocks starting to decline Trader Vic thinks they could be telling us something about future market moves.

Download audio file (2017_06_29-Trader-Vic.mp3)

…read more

Source:: The Korelin Economics Report

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Big Bank Payday

Zach Scheidt

By Zach Scheidt

This post Big Bank Payday appeared first on Daily Reckoning.

For years, the Federal Reserve has been the bitter enemy of U.S. savers.

After all, the Fed’s zero interest rate policy (and minuscule recent rate increases) have led to paltry returns on savings accounts, withering pension plan balances, and hardship for retirees.

But this week, the Fed made a completely unexpected decision… One that was largely overlooked by the media… And this decision gives savers like you and me a chance to boost income payments by 60% or more!

Let’s dig in to this overlooked Fed decision so you can claim your share of this income…

Banks Pass Fed’s Stress Tests, Gear Up For Bigger Payments

This week, the Federal Reserve announced that all 34 banks passed the Fed’s annual stress test. That’s big news considering it is the first time all participants have received passing marks since the Fed first started administering the tests in 2011.1

A passing grade simply means that banks have enough capital to weather a financial storm. For instance, one of the scenarios the Fed uses is a recession in which real estate markets have severe challenges, corporate loans default and the unemployment rate reaches 10%.

On the surface, it’s encouraging to see that U.S. banks have finally made enough responsible decisions to be able to withstand a challenging market environment.

But strong banks by themselves aren’t going to do you and me a bit of good. Because after all, savings accounts are still paying paltry rates of return.

Fortunately, there was a second part to these stress tests that caught my eye. One that will lead to bigger income payments, and much higher investment returns…

And these returns tie back to the Fed’s stress tests and the capital these banks have set aside.

You see, part of the stress test process includes bank requests to pay capital back to shareholders. Essentially, the banks tell the Fed how much they would like to spend on dividends and share buybacks, and the Fed gives them a green light — or a red light — to follow through on the plans.

This year, all 34 banks also received a green light to increase payments to shareholders. And we’re not talking about a small increase either.

According to the Fed’s statement, U.S. banks now have approval to pay as much as 100% of this year’s earnings back to shareholders. That’s up from a 65% level approved last year.2

Banks will return this capital to shareholders using one of two methods (or both):

Banks can increase dividends paid directly to shareholders

Banks can also buy back shares of their own stock.

Both of these types of payments work to our favor.

If you own shares of a bank and the dividend increases, that means you’ll get a bigger payment every quarter. And if you’re enrolled in a Dividend Reinvestment Plan (or DRIP), the bigger payments will help you buy more shares of your bank stocks.

As the power of compound interest kicks in (earning ever-growing payments on more shares of stock), your account will grow …read more

Source:: Daily Reckoning feed

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Mandalay Resources declares force majeure at flooded Chilean mine

By analyst

By Cecilia Jamasmie

Canada’s Mandalay Resources (TSX:MND) has declared force majeure at its Cerro Bayo underground silver-gold complex in Chile following an incident on June 9 that caused one of the three mines to flood, killing two workers.

The Toronto-based company said its subsidiary has begun contacting its primary customers, suppliers and contractors about it, as obligations with these parties are now suspended.

“Mandalay is also initiating consultations with its unions about the potential impacts on employees during this period of suspended production,” it said in a statement.

The firm has initiated an independent technical investigation into the flooding of the Delia NW mine, as well as risk assessments for restarting operations of the Coyita, Delia SE, Marcela and Raul mines, which form the basis for Cerro Bayo’s current life of mine plan.

The company is reviewing several alternatives for the future of mining at Cerro Bayo and is consulting with all stakeholders in this review process, including employees, unions, and government officials.

Mandalay said it expects to be in a position to provide a more detailed update on its plans for Cerro Bayo and the impact of the suspension of operations on the company’s 2017 production guidance in conjunction with its disclosure of second quarter 2017 financial results, scheduled for after market close on August 10.

More to come…

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…read more

Source:: Infomine

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Debt Is the Third Benjamin Franklin Certainty

By David Stockman

This post Debt Is the Third Benjamin Franklin Certainty appeared first on Daily Reckoning.

Benjamin Franklin supposedly said, “In this world nothing can be said to be certain, except death and taxes.”

If old Ben were still around he would surely add “debt” to his famous saying. Indeed, a recent Experian study of its 220 million consumer files actually proves the case.

It turns out that 73% of consumers who died last year had debts which averaged nearly $62,000. In addition to the kind of debt that apparently always stays with you — credit cards and car loans — it also happened that 37% of the newly deceased had unpaid mortgages and 6% still had student loans with an average unpaid balance of $25,391!

Once upon a time people used to have mortgage burning ceremonies when later in their working years the balance on the one-time loan they took out in their 30s to buy their castle was finally reduced to zero.

And there was no such thing as student loans, and not only because students are inherently not credit worthy. College was paid for with family savings, summer jobs, work study and an austere life of four to a dorm room.

No more. The essence of debt in the present era is that it is perpetually increased and rolled-over. It’s never reduced and paid-off.

To be sure, much of mainstream opinion considers that reality unremarkable — even evidence of economic progress and enlightenment. Keynesians, Washington politicians and Wall Street gamblers would have it no other way because their entire modus operandi is based not just on ever more debt, but more importantly, on ever higher leverage.

The chart below not only proves the latter point, but documents that over the last four decades rising leverage has been insinuated into every nook and cranny of the U.S. economy.

Nominal GDP (dark blue) grew by 6X from $3 trillion to $18 trillion, whereas total credit outstanding (light blue) soared by 13X from $5 trillion to $64 trillion.

Consequently, the national leverage ratio rose from 1.5X in 1980 to 3.5X today.

My point today is not to moralize, but to discuss the practical implications of the nation’s debt-topia for Ben Franklin’s other two certainties — death and (especially) taxes.

There’s no doubt that the modus operandi of the American economy has been transformed by the trends displayed in the below chart.

It so happened that the 1.5X ratio of total debt-to-income (GDP) at the beginning of the chart was not an aberration. It had actually been a constant for 100 years — except for a couple of unusual years during the Great Depression.

It was also linked with the greatest period of capitalist prosperity, economic growth and rising living standards in recorded history.

By contrast, today’s 3.5X debt-to-income ratio has two clear implications.

First, the nation effectively performed a leveraged buyout (LBO) on itself during the last forty years. And that did temporarily add to the appearance of prosperity.

But it also means that the U.S. economy is now lugging two turns of extra …read more

Source:: Daily Reckoning feed

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Iron ore price jumps to 8-week high

By analyst

iron ore price jumps to 8-week high

By Frik Els

The Northern China import price of 62% Fe content ore gained 2.3% on Tuesday to trade at $62.90 per dry metric tonne according to data supplied by The Steel Index. The price of the steelmaking raw material is now up more than 18% from year lows hit two weeks ago.

Some of the strength on iron ore markets are the result of speculation in futures ahead of the end of the quarter, but combined daily volumes on the main physical iron ore trading platforms in China and Singapore also reached its highest this year on Thurday, reports Reuters:

“We’re not expecting to see a full-blown rally from here, but something in the low $60s looks reasonable over the next few months,” said Daniel Hynes, commodity strategist at ANZ.

Something in the low $60s looks reasonable over the next few months

A worry for the industry remains global oversupply and stockpiles at Chinese ports remaining at record highs. Stocks of iron ore at China’s ports topped 141 million tonnes last week, the highest since 2004 according to Reuters:

“While demand is strong, supply is also strong,” said a trader in Beijing who last bought cargoes two weeks ago. “We’re very cautious about rising prices.”

Growing surplus

Iron ore’s rally goes counter to what most analysts believe is in store for the market which has been in oversupply for more than two years.

Morgan Stanley this week sharply cut its forecast for the iron ore price in the third quarter with the investment bank now seeing an average of $50 over the period, climbing to $55 in the final three months. For the year as a whole Morgan Stanley sees the commodity averaging $63 compared to a year-to-date average of $74. Iron ore is expected to continue to soften averaging $58 next year and $54 in 2019.

The latest forecast from the Morgan Stanley is more optimistic than predictions in a research note Citigroup released last week. The bank lowered its price outlook by a fifth saying iron ore will average $48 a tonne in Q4 2017, down from $60 in its previous prediction:

Both analysis blame growing global supply – most notably from Vale’s S11D mine and Roy Hill in Australia hitting full production – for the weak outlook. According to Citigroup, 2017 will see a surplus of 118m tonnes following a more than 60m tonnes glut last year. Morgan Stanley predicts nearly 40m tonnes of oversupply this year, growing steadily to top 120m tonnes in 2019 and 185m excess tonnes in 2021.

The post Iron ore price jumps to 8-week high appeared first on MINING.com.

…read more

Source:: Infomine

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Buy or Sell Pepsi Stock Today?

pepsi stock 2

By Rob Otman

Pepsi (NYSE: PEP) is a large cap company that operates within the beverages industry. Its market cap is $165 billion today, and the total one-year return is 14.9% for shareholders.

Pepsi stock is underperforming the market. It’s beaten down… so is it a good time to buy? To answer this question, we’ve turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…

[iu-adbox]

✓ Earnings-per-Share (EPS) Growth: Pepsi reported a recent EPS growth rate of 43.75%. That’s above the beverages industry average of 38.82%. That’s a great sign. Pepsi’s earnings growth is outpacing that of its competitors.

✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the beverages industry is 40.48. And Pepsi’s ratio comes in at 23.55. It’s trading at a better value than many of its competitors.

✗ Debt-to-Equity: The debt-to-equity ratio for Pepsi stock is 330.89%. That’s above the beverages industry average of 64.66%. That’s not a good sign. Pepsi’s debt levels should be lower.

✗ Free Cash Flow per Share Growth: Pepsi’s FCF has been lower than that of its competitors over the last year. That’s not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It’s one of our most important fundamental factors.

✗ Profit Margins: The profit margin of Pepsi comes in at 10.94% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Pepsi’s profit margin is below the beverages average of 13.15%. So that’s a negative indicator for investors.

✓ Return on Equity: Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Pepsi is 59.38%, and that’s above its industry average ROE of 16.66%.

Pepsi stock passes three of our six key metrics today. That’s why our Investment U Stock Grader rates it as a Hold.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

If you’re interested in finding Strong Buy stocks yourself, check out Fundamental Analysis Pro. It’s a free five-part mini-course that will teach you how to grade stocks like a Wall Street veteran. Click here to learn more. …read more

Source:: Investment You

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Rick Ackerman and Technicals – Thu 29 Jun, 2017

By Cory US Markets Still Look Bullish

Rick Ackerman had an impromptu webinar with his subscribers that focused on a wide range of sectors. Listen in to hear his general takeaways.

Click here to visit Rick’s website.

Download audio file (2017_06_29-Rick-Ackerman.mp3)

…read more

Source:: The Korelin Economics Report

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Craig Hemke from TF Metals Report – Thu 29 Jun, 2017

By Cory USD Decline, Bonds Dropping, Inflation Data All Impacting Gold

Gold continues to hang in there as we are seeing a much bigger sell offs in US equities, bonds, and the USD. Craig Hemke from TF Metals Report looks at these markets as well as inflation data to assess the future of the metals.

Click here to visit Craig’s website.

Download audio file (2017_06_29-Craig-Hemke.mp3)

…read more

Source:: The Korelin Economics Report

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