Is This The Beginning Of The End For Facebook? Reasons For Concern For Investors [View article]
"Total amount of users" is a meaningless number.
So what Facebook has 1.1 billion users. If all these users only spend 1 second per day on the website, it would amounts to a total of 35 years of user interaction, whereas Google could "only" have 1 million users but each spending 1 hour per day amounting to a total of 114(!) years of user interaction. Clearly, Google would be the more valuable company.
The Great Disconnect Between Paper And Physical Precious Metals Prices [View article]
We can no longer rely on the spot price of gold to track the graphical direction. Instead, what we need is a spot+premium indicator. I am sure that a graph of such an indicator will show us a completely different picture than the usual spot graph.
Sovereign Rates Suggest Further Fall In The Euro [View article]
"it is also destroying the value of the ECB's balance sheet by being bearish for gold (GLD). Remember, the ECB, unlike Japan and the U.S., marks its gold reserves to market so an attack on the price of gold - and the great vacuuming of it out of western vaults to eastern vaults - is a further attack on the euro and, by proxy, the Bundesbank."
Don't forget that mark-to-market depends on WHAT market....as there is a big difference between a paper derivatives gold market and a cash market for bullion in size. If they ECB wanted, they could create overnight a cash market for bullion and revalue their bullion holdings to say €5,000 per ounce. As a result, people would immediately demand delivery from the COMEX to sell physical to the ECB. Since the COMEX cannot deliver, it would declare force majeur and settle in paper. When that happens, the entire derivatives market implodes and only the cash market remains at the ECB set price.
At the close: Dow +0.77% to 15351. S&P +0.95% to 1666. Nasdaq +0.87% to 3495. Treasurys: 30-year -0.85%. 10-yr -0.36%. 5-yr -0.14%. Commodities: Crude +0.87% to $95.98. Gold -2.29% to $1355.15. Currencies: Euro -0.42% vs. dollar. Yen +0.95%. Pound +0.67%. [View news story]
Surprise! America will continue to pay its bills. The White House informs Congress of the Treasury's intention to use "extraordinary measures" once the debt ceiling is hit this weekend. (previous) [View news story]
Charade. "Frugal" Germany does not even have a debt ceiling. Time to do away with it.
Euro Area Economy - Still Going Down The Drain [View article]
"In fact, there is way too much government in Europe, in every respect. That is the main reason for the poor performance. Too much spending, too high taxes, too many regulations, including, but not only, absolutely sclerotic and absurdly over-regulated labor markets and expensive and complicated licensing regulations."
It seems to only get worse: France is planning to increase taxes "on the rich" and even in Holland taxes are rising. I am sorry to say, but I get the feeling that Europe is becoming increasingly more communist.
The mortgage REIT sector (MORT -1%) continues under pressure, today led by Western Asset Mortgage (WMC -7.6%) as its book value blew up in Q1 thanks to portfolio losses. American Capital Agency (AGNC -1.5%) - which started the downturn when it reported losses 2 weeks ago - nears a 52-week low, Armour Residential (ARR -3.1%) hits one. One trader suggests Capstead Mortgage (CMO -1.4%) with a portfolio of mostly reset ARMs the least affected by rising rates. CYS Investments (CYS -0.7%) - trading at a 10% discount to book and also owning ARMs - is attractive as well. [View news story]
The mortgage REIT sector (MORT -1%) continues under pressure, today led by Western Asset Mortgage (WMC -7.6%) as its book value blew up in Q1 thanks to portfolio losses. American Capital Agency (AGNC -1.5%) - which started the downturn when it reported losses 2 weeks ago - nears a 52-week low, Armour Residential (ARR -3.1%) hits one. One trader suggests Capstead Mortgage (CMO -1.4%) with a portfolio of mostly reset ARMs the least affected by rising rates. CYS Investments (CYS -0.7%) - trading at a 10% discount to book and also owning ARMs - is attractive as well. [View news story]
It's a sell as book value will crater due to lower long-term treasury bond prices. The spread may improve a bit however, until the FED start raising interest rates (later this year, or early next year).
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
These days, hedge funds are the epitome of crony capitalism: lets manipulate the market by going short first, then go on TV to bash the stock by spreading false information.
Avoid The 'Hunt For Yield,' But Remember Treasury ETFs Are Priceless [View article]
Volatility in long-term treasury bonds has been enormous lately. Swings of more than 10% in a week are nothing unusual these days. Considering the low interest rates of these bonds, the rewards does not outweigh the risk of investing in long-term treasury bonds.
Is This The Beginning Of The End For Facebook? Reasons For Concern For Investors [View article]
So what Facebook has 1.1 billion users. If all these users only spend 1 second per day on the website, it would amounts to a total of 35 years of user interaction, whereas Google could "only" have 1 million users but each spending 1 hour per day amounting to a total of 114(!) years of user interaction.
Clearly, Google would be the more valuable company.
Higher Interest Rates Don't Necessarily Mean Lower Equity Prices [View article]
Yahoo LEAPS: Like Stealing Babies From A Candy Store [View article]
Australian 2013 Budget Bearish - Short Aussie [View article]
(2001 Head at $0.5, neckline at $0.8, shoulders in 1987 and 2008)
The Great Disconnect Between Paper And Physical Precious Metals Prices [View article]
Is A Force Majeure Of The Comex Paper Market Really Just A Tinfoil Hat Theory? [View article]
*If you don't hold it, you don't own it*
Sovereign Rates Suggest Further Fall In The Euro [View article]
Don't forget that mark-to-market depends on WHAT market....as there is a big difference between a paper derivatives gold market and a cash market for bullion in size.
If they ECB wanted, they could create overnight a cash market for bullion and revalue their bullion holdings to say €5,000 per ounce.
As a result, people would immediately demand delivery from the COMEX to sell physical to the ECB. Since the COMEX cannot deliver, it would declare force majeur and settle in paper. When that happens, the entire derivatives market implodes and only the cash market remains at the ECB set price.
At the close: Dow +0.77% to 15351. S&P +0.95% to 1666. Nasdaq +0.87% to 3495.
Treasurys: 30-year -0.85%. 10-yr -0.36%. 5-yr -0.14%.
Commodities: Crude +0.87% to $95.98. Gold -2.29% to $1355.15.
Currencies: Euro -0.42% vs. dollar. Yen +0.95%. Pound +0.67%. [View news story]
Surprise! America will continue to pay its bills. The White House informs Congress of the Treasury's intention to use "extraordinary measures" once the debt ceiling is hit this weekend. (previous) [View news story]
Euro Area Economy - Still Going Down The Drain [View article]
It seems to only get worse: France is planning to increase taxes "on the rich" and even in Holland taxes are rising.
I am sorry to say, but I get the feeling that Europe is becoming increasingly more communist.
The mortgage REIT sector (MORT -1%) continues under pressure, today led by Western Asset Mortgage (WMC -7.6%) as its book value blew up in Q1 thanks to portfolio losses. American Capital Agency (AGNC -1.5%) - which started the downturn when it reported losses 2 weeks ago - nears a 52-week low, Armour Residential (ARR -3.1%) hits one. One trader suggests Capstead Mortgage (CMO -1.4%) with a portfolio of mostly reset ARMs the least affected by rising rates. CYS Investments (CYS -0.7%) - trading at a 10% discount to book and also owning ARMs - is attractive as well. [View news story]
The mortgage REIT sector (MORT -1%) continues under pressure, today led by Western Asset Mortgage (WMC -7.6%) as its book value blew up in Q1 thanks to portfolio losses. American Capital Agency (AGNC -1.5%) - which started the downturn when it reported losses 2 weeks ago - nears a 52-week low, Armour Residential (ARR -3.1%) hits one. One trader suggests Capstead Mortgage (CMO -1.4%) with a portfolio of mostly reset ARMs the least affected by rising rates. CYS Investments (CYS -0.7%) - trading at a 10% discount to book and also owning ARMs - is attractive as well. [View news story]
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Japan: Free To Inflate In Peace [View article]
The BOJ could set a yield cap for the JGBs and promise to buy unlimited quantities of JGBs to defend that cap.
Avoid The 'Hunt For Yield,' But Remember Treasury ETFs Are Priceless [View article]
Considering the low interest rates of these bonds, the rewards does not outweigh the risk of investing in long-term treasury bonds.