Seeking Alpha

AndrewBaker

AndrewBaker
Send Message
View as an RSS Feed
View AndrewBaker's Comments BY TICKER:
Latest  |  Highest rated
  • Wall Street Breakfast: UBS Settles Forex, Libor Scandals [View article]
    This is a perennial problem: life lasts - hopefully - for many decades, but governments only 0.4 of one decade (in the US, and generally most countries have two governments per decade), so political thinking is extreme short term-ism compared to life expectancy. Politicians don't care about "our children and grandchildren" as they all like to declare that they do: they care only about when the next election requires them to kiss a few babies and make a few - to be broken - promises.

    In the past it didn't matter so much because politicians then had done something in life, so knew a little about what was needed to be done in power, but now so many start political careers from high school and have no knowledge at all of the real world.

    Boom and bust will be with us as long as we have the political minds that inhabit the earth today: what's a little QE or inflation matter as long as you can pucker up and kiss a baby on election day?
    May 20, 2015. 07:59 AM | 7 Likes Like |Link to Comment
  • Wall Street Breakfast: ECB Pledges To Boost Bond Buying [View article]
    Deutsche Bank is studying whether to move large chunks of its British operations to Germany ...

    If the UK does leave the EU, it will hurt their economy mightily. Already Heathrow is losing its place as a hub airport as they don't have enough capacity to fly to destinations growing in importance. If the financial sector starts to move away as well, that will be another dent in their economy. Already English being the language spoken there, is becoming less important as so many more people in Europe are bilingual now, with English as their second language, so yet another reason why traveling to or via the UK doesn't matter so much.

    Even today, it seems that many British still don't recognize that the days of Empire ended years ago, and now they are talking about losing the importance that being a major power in Europe gives them currently, which coming out of the EU will do.

    How important would, say, California be if it left the Union? No matter how well one geographic area does, it cannot isolate itself from other allied areas and expect to do as well or better in the future. Economically, the world is growing smaller day by day. Cutting oneself off from that will reduce one's influence, not increase it.
    May 19, 2015. 11:36 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Shell May Have To Sell BG's Kazakh 'Cash-Cow' [View article]
    The fines on banks have been anticipated, and when the actual numbers are known, that should cause a rise in their stocks' prices as certainty will replace speculation as to the amounts. Financial businesses are necessary for any economic upturn, so these businesses will lead the way forward. Barclays itself is a good bet as an individual bank, and a good bank ETF is also worth buying right now, IMHO.
    May 18, 2015. 08:14 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Dollar Crumbles, Hits Fresh Lows [View article]
    Credit and debt is too high, and can only be gotten rid off by inflating it away as there simply is not the value of real assets there that is required to repay the debt. In other words, everything is overpriced in numerical terms, and the only way out is a revaluation of currencies: ergo, inflation.

    Pity the people who have saved for years to provide a financial bedrock in later life: it will just crumble away, as it must to save our economic system from destruction.

    The only home for savings that will weather the storm is real assets, such as gold for the passive, and for more adventurous and active investors, equity in worthwhile businesses; being those that have pricing power through a necessary product that cannot easily be replaced by another (and which businesses they are, are for you to work out,lol.)
    May 14, 2015. 08:14 AM | 7 Likes Like |Link to Comment
  • Wall Street Breakfast: Dollar Crumbles, Hits Fresh Lows [View article]
    The dollar languished at three-month lows ...

    Dollar down, gold up, is not a bad rule to follow right now, especially when down against the Swiss franc, which it certainly is. Gold itself is due a rerating, plus gold miners add an extra fillip due to the gearing that gold mining shares enjoy over the price of gold.

    Elsewhere the oil price battle against shale etc. also points to value rerating: so much QE and other measures by fiat governments in the recent past, means that currencies have gotten out of kilter with real worth, and so expect a lot more FX battles and uncertainty. Gold certainly looks like regaining its crown as a store for wealth when economic uncertainty abounds, as it most certainly does now.
    May 14, 2015. 07:04 AM | 5 Likes Like |Link to Comment
  • Wall Street Breakfast: European Stocks Rise After GDP Data [View article]
    Global bond yields will start to stabilize ...

    Yes, to provide a platform for the big push north that is coming. Interest rates lower than inflation and that actually result in continuing ongoing losses due to inflation, plus taxes on top, cannot continue for too long as people will get tired - and not a little angry - at their saved wealth evaporating. Either rates will rise or bonds will be sold to reinvest elsewhere, forcing rates to rise as capital values fall: one leads to the other in bond investment.

    So, being told it's ok to keep invested in bonds of any kind, is not good advice, and will cost those who do so to lose even more money going forward.
    May 13, 2015. 06:49 AM | 4 Likes Like |Link to Comment
  • Wall Street Breakfast: Stocks Slide As Bond Market Turmoil Continues [View article]
    Short bonds: yes, I agree that now is the time to do just that. I bought into short bond ETF too soon last year, and had to take a hit by selling out soon after. This time, it will be different ... (please, lol.)
    May 12, 2015. 08:41 AM | 2 Likes Like |Link to Comment
  • Global bond sell-off kicks on [View news story]
    I bought into short bond ETF too soon, and sold out at a loss; but now the time is here to buy back in again IMHO.

    And yes, I agree: gold will go higher. I hold GDX, a gold miners' ETF, as it is a geared play on the gold price.
    May 12, 2015. 08:37 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Bloodbath In The Bond Market [View article]
    In an apparent shift in attitude, the FAA is planning to announce an initiative today to study drone flights beyond the sight of an operator ...

    For those who think this is a growing market place, take a look at

    http://bit.ly/1bxx5wF

    A company I favor in this area is Parrot S. A. (PARRO on the French stock exchange.) This is not just a one-trick pony company; they have a range of products, all of which are relevant to today. And as a European company, you buy the Europe recovery story too, included in the price, lol.

    Take a look here, too:

    http://on.wsj.com/1bxx5wJ

    Disclosure: long Parrot.
    May 6, 2015. 07:13 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Eurozone Growth Forecast Gets Big Boost [View article]
    The Eurozone is on the mend and now is a good time to buy in or buy more. Banks are also on the mend, and the same applies. How about a European long bank ETF: one could definitely do worse, lol.

    Barclays (BCS)- and I'm long - get my vote for an individual bank, for those wanting to buy stock directly in one bank.
    May 5, 2015. 12:02 PM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: World Stocks Remain In Sell-Off Mode [View article]
    Yep, the expected correction with the summer vacation period not far ahead will drop prices, so either take some profits now, and wait to go back in later in the year, or shrug, keep the portfolio as is, and enjoy the rest of spring and the summer (but don't keep checking prices if you've a weak disposition, lol)
    Apr 30, 2015. 12:30 PM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Markets Prepare For Week Of Central Bank Decisions [View article]
    Japan finally coming out of its 20+ year stockmarket bottoming, China looking to continue to grow but at a more sedate and sustainable level, other eastern, plus emerging economies, excepting a few laggards, turning north slowly, all suggests that the turn is being completed, and that a growing world economy is not just budding but branching, leafing, and flowering are starting. And Europe has already shown itself as in recovery, with Greece just a minor irritation. Even the UK FT-SE 100 index has now blueskyed, going above its 1999 previous peak.

    It will be a very myopic bear indeed who still sees a market collapse, apart from miner corrections always necessary when markets head north.
    Apr 27, 2015. 07:38 AM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Tech Earnings Dominate Headlines; Nasdaq Breaks Record [View article]
    UBS agrees with me, I'm pleased to see. Europe does offer great value going forward, and stocks may be bought now with a strong dollar, that will give currency as well as capital gains as European markets get stronger and the dollar weakens in the future.

    Add to that that a US market correction has yet to happen, which it will; and the value of re-balancing portfolios to increase European weightings is clear.
    Apr 24, 2015. 09:34 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Where's The Value These Days? [View article]
    Uranium stocks surged Wednesday after Japan approved the reopening of nuclear reactors.

    If we want less CO2 in the atmosphere without reducing our power use, then green tech like wind farms and the like are not enough: we nee nuclear power too. All we need now is for Germany to re-adopt nuclear, other nations to consider this option, and to find a safe and lasting way to rid ourselves of the waste from nuclear plants that has built up over the past 60 years or so. Roll on the advent of safe, controlled and economically viable nuclear fusion.
    Apr 23, 2015. 08:08 AM | 10 Likes Like |Link to Comment
  • Wall Street Breakfast: Where's The Value These Days? [View article]
    Now might be a good time for U.S. investors to pick up relatively cheap overseas assets ...

    I'm pleased someone else agrees with me, lol! The dollar will weaken in time, and whilst we are waiting, it can currently buy undervalued/priced assets overseas, which will give a return on both a growing stock price as the undervaluation is recognized, and the exchange rate as the dollar does weaken going forward.
    Apr 23, 2015. 07:59 AM | 3 Likes Like |Link to Comment
COMMENTS STATS
2,439 Comments
6,875 Likes