|
| Home | About Us | Resources | Archive | Free Reports | Market Window |
The Supreme Court's 2005 decision in Kelo v. City of New London stands as one of the worst in recent years, handing local governments carte blanche to seize private property in the name of economic development.
Now, four years after that decision gave Susette Kelo's land to private developers for a project including a hotel and offices intended to enhance Pfizer Inc.'s nearby corporate facility, the pharmaceutical giant has announced it will close its research and development headquarters in New London, Connecticut.
The aftermath of Kelo is the latest example of the futility of using eminent domain as corporate welfare.
While Ms. Kelo and her neighbors lost their homes, the city and the state spent some $78 million to bulldoze private property for high-end condos and other "desirable" elements. Instead, the wrecked and condemned neighborhood still stands vacant, without any of the touted tax benefits or job creation.
Now, four years after that decision gave Susette Kelo's land to private developers for a project including a hotel and offices intended to enhance Pfizer Inc.'s nearby corporate facility, the pharmaceutical giant has announced it will close its research and development headquarters in New London, Connecticut.
The aftermath of Kelo is the latest example of the futility of using eminent domain as corporate welfare.
While Ms. Kelo and her neighbors lost their homes, the city and the state spent some $78 million to bulldoze private property for high-end condos and other "desirable" elements. Instead, the wrecked and condemned neighborhood still stands vacant, without any of the touted tax benefits or job creation.
- Wall Street Journal
U.S. foreclosure filings surpassed 300,000 for an eighth straight month as unemployment made it tougher for homeowners to pay their bills, RealtyTrac Inc. said.
A total of 332,292 properties received a default or auction notice or were seized by banks in October, up 19 percent from a year earlier, Irvine, California-based RealtyTrac said today. One in every 385 households received a filing. The tally fell 3 percent from September, the third consecutive monthly decline.
...Distressed real estate transactions accounted for 30 percent of all home sales in the third quarter as the median price fell 11 percent from a year earlier to $177,900, according to the National Association of Realtors. U.S. unemployment surged to a 26-year high of 10.2 percent in October as payrolls fell by 190,000 workers, the Labor Department said last week.
A total of 332,292 properties received a default or auction notice or were seized by banks in October, up 19 percent from a year earlier, Irvine, California-based RealtyTrac said today. One in every 385 households received a filing. The tally fell 3 percent from September, the third consecutive monthly decline.
...Distressed real estate transactions accounted for 30 percent of all home sales in the third quarter as the median price fell 11 percent from a year earlier to $177,900, according to the National Association of Realtors. U.S. unemployment surged to a 26-year high of 10.2 percent in October as payrolls fell by 190,000 workers, the Labor Department said last week.
- Bloomberg
-
The Ultimate Gold Bubble Test
by Brian Hunt Thursday, November 12, 2009 The Ultimate Gold Bubble Test -
Don't Fool Yourself: America Is "Now a Communist Nation"
by Porter Stansberry Wednesday, November 11, 2009 Don't Fool Yourself: America Is "Now a Communist Nation" -
The Four Best Places to Keep Your Gold
by Tom Dyson Tuesday, November 10, 2009 The Four Best Places to Keep Your Gold -
Looking for a Couple to Go On a Business Adventure
by Tom Dyson Monday, November 9, 2009 Looking for a Couple to Go On a Business Adventure -
The Central Investment Problem of Our Time
by Chris Weber Saturday, November 7, 2009 The Central Investment Problem of Our Time
Is It a Gold Bull Market or a Dollar Bear Market?
By Dr. Steve SjuggerudFriday, November 13, 2009
Which is it? A gold bull market? Or a dollar bear market?
Yes, you can have one without the other...
For example, gold soared 50% from early 2002 to early 2005 – but that was a dollar bear market, not a gold bull market. Let me explain...
Gold went from $280 to $420 an ounce in those three years. But in terms of euros, gold was exactly flat, at around 320 euros per ounce. So that was a bear market in dollars, NOT a bull market in gold.
So which is it today?
My simple definition of a bull market in gold is this: When gold is rising in terms of all four of the most widely traded currencies, you're in a gold bull market.
Today, we're in a gold bull market.
In each of the last three months (and in six of the last 11 months), gold has risen month-over-month versus all four major currencies: the dollar, the euro, the yen, and the British pound.
The numbers are astounding...
Since 1971, gold has risen against all four currencies month-over-month 31% of the time. If you simply hold gold during the month after that happens, the compound annual gain in gold is an astonishing 34%.
For the other 69% of the time (when gold didn't rise against all four currencies in the previous month), gold lost money over the next month. Extraordinary!
Last week, I showed you a simple gold indicator with some incredible results... I said, "Simple is elegant. A few minutes a year turned $10,000 into $1.28 million over 41 years, without any number gymnastics."
With that simple gold indicator, gold rises at a compound rate of 17% a year in "buy" mode.
With today's simple gold indicator, gold rises at a 34% compound annual rate after it's moved up against four currencies.
When you combine the two simple indicators, gold rises at a compound annual rate of 44%. Wow!
Granted, both indicators are rarely in "buy" mode at the same time – it's happened 26% of the time since 1971. But importantly, we're in "buy" mode in both indicators right now...
It's no surprise gold is soaring right now.
But to answer the question at the beginning... Is it a bull market in gold? Or a bear market in the dollar?
The truth is, unlike 2002-2005, it's both... It's a bull market in gold, AND a bear market in the dollar. The U.S. dollar has dropped nearly 15% since March against an index of the euro, pound, and yen.
Both of our simple gold indicators are in "buy" mode... and both have incredible track records. There's no hurry to sell your gold yet.
Good investing,
Steve
Yes, you can have one without the other...
For example, gold soared 50% from early 2002 to early 2005 – but that was a dollar bear market, not a gold bull market. Let me explain...
Gold went from $280 to $420 an ounce in those three years. But in terms of euros, gold was exactly flat, at around 320 euros per ounce. So that was a bear market in dollars, NOT a bull market in gold.
So which is it today?
My simple definition of a bull market in gold is this: When gold is rising in terms of all four of the most widely traded currencies, you're in a gold bull market.
Today, we're in a gold bull market.
In each of the last three months (and in six of the last 11 months), gold has risen month-over-month versus all four major currencies: the dollar, the euro, the yen, and the British pound.
The numbers are astounding...
Since 1971, gold has risen against all four currencies month-over-month 31% of the time. If you simply hold gold during the month after that happens, the compound annual gain in gold is an astonishing 34%.
For the other 69% of the time (when gold didn't rise against all four currencies in the previous month), gold lost money over the next month. Extraordinary!
Last week, I showed you a simple gold indicator with some incredible results... I said, "Simple is elegant. A few minutes a year turned $10,000 into $1.28 million over 41 years, without any number gymnastics."
With that simple gold indicator, gold rises at a compound rate of 17% a year in "buy" mode.
With today's simple gold indicator, gold rises at a 34% compound annual rate after it's moved up against four currencies.
When you combine the two simple indicators, gold rises at a compound annual rate of 44%. Wow!
Granted, both indicators are rarely in "buy" mode at the same time – it's happened 26% of the time since 1971. But importantly, we're in "buy" mode in both indicators right now...
It's no surprise gold is soaring right now.
But to answer the question at the beginning... Is it a bull market in gold? Or a bear market in the dollar?
The truth is, unlike 2002-2005, it's both... It's a bull market in gold, AND a bear market in the dollar. The U.S. dollar has dropped nearly 15% since March against an index of the euro, pound, and yen.
Both of our simple gold indicators are in "buy" mode... and both have incredible track records. There's no hurry to sell your gold yet.
Good investing,
Steve
HEALTH CARE: THIS WEEK'S UNLIKELY NEW HIGH
The star of this week's "unlikely new highs" department: the U.S. Healthcare Providers investment fund, symbol IHF.
IHF is a one-click way to invest in a broad swath of the U.S. heath care industry. Major holdings include Cigna (insurance), UnitedHealth (insurance), Quest Diagnostics (testing), DaVita (dialysis services), and Express Scripts (pharmacy management). The fund is up 35% in the past seven months and just registered a new 52-week high.
The conventional thinking is at odds with this price action. After all, won't the government's reform efforts drive down profits for anyone who gives a flu shot, performs a lab test, or asks you to fill out an insurance form? We asked medical stock expert Rob Fannon (editor of the Phase 1 Investor) for his take on the situation...
Rob says sure, reform may pressure profit margins. But remember how the ancient law of supply and demand works. The government could make health care "free" to tens of millions of people. When you make a product or service free, you create unlimited demand for it. That's why Rob recommends getting on board this trend. Profits may go down a bit, but if Washington's "free houses, cars, and health care" panderers get their way, a lot of new demand and revenue is headed toward IHF and its holdings.
IHF is a one-click way to invest in a broad swath of the U.S. heath care industry. Major holdings include Cigna (insurance), UnitedHealth (insurance), Quest Diagnostics (testing), DaVita (dialysis services), and Express Scripts (pharmacy management). The fund is up 35% in the past seven months and just registered a new 52-week high.
The conventional thinking is at odds with this price action. After all, won't the government's reform efforts drive down profits for anyone who gives a flu shot, performs a lab test, or asks you to fill out an insurance form? We asked medical stock expert Rob Fannon (editor of the Phase 1 Investor) for his take on the situation...
Rob says sure, reform may pressure profit margins. But remember how the ancient law of supply and demand works. The government could make health care "free" to tens of millions of people. When you make a product or service free, you create unlimited demand for it. That's why Rob recommends getting on board this trend. Profits may go down a bit, but if Washington's "free houses, cars, and health care" panderers get their way, a lot of new demand and revenue is headed toward IHF and its holdings.