|
| Home | About Us | Resources | Archive | Free Reports | Market Window |
Investors are paying more for many of their stock mutual funds, according to a study by Lipper Analytical Services.
More than 70% of stock funds have higher expense ratios now than they did a year ago, the study says. The average increase among funds with higher expense ratios: 0.082 of a percentage point. Of the funds with increases, nearly 25% raised their expense ratios by more than 0.1 percentage point.
...Small increases in expenses translate into big money in the $10.8 trillion fund industry. Every 0.01 percentage-point increase in expenses to a $10 billion fund is $1 million. And every $1 million the fund charges is $1 million shareholders don't get. The average expense ratio (expenses divided by assets) for stock funds is 1.5%.
More than 70% of stock funds have higher expense ratios now than they did a year ago, the study says. The average increase among funds with higher expense ratios: 0.082 of a percentage point. Of the funds with increases, nearly 25% raised their expense ratios by more than 0.1 percentage point.
...Small increases in expenses translate into big money in the $10.8 trillion fund industry. Every 0.01 percentage-point increase in expenses to a $10 billion fund is $1 million. And every $1 million the fund charges is $1 million shareholders don't get. The average expense ratio (expenses divided by assets) for stock funds is 1.5%.
- John Waggoner, USA Today
Congress is using "every budget gimmick in the book" to conceal hundreds of billions in healthcare-reform costs that will lead to "massive tax increases" and higher insurance premiums, one of the country's leading healthcare experts warns.
Dr. Robert E. Moffit, a senior official in the Department of Health and Human Services during the Reagan administration, who now directs the Heritage Foundation's Center for Health Policy Studies, tells Newsmax that taxpayers are about to be blindsided by a spiraling healthcare expenses.
Moffit says the sharp jump in costs will occur despite what he calls President Obama's "absurd promise" that that his healthcare reform proposals would bring sharp reductions in Americans' healthcare bills.
Dr. Robert E. Moffit, a senior official in the Department of Health and Human Services during the Reagan administration, who now directs the Heritage Foundation's Center for Health Policy Studies, tells Newsmax that taxpayers are about to be blindsided by a spiraling healthcare expenses.
Moffit says the sharp jump in costs will occur despite what he calls President Obama's "absurd promise" that that his healthcare reform proposals would bring sharp reductions in Americans' healthcare bills.
- Newsmax
It's just been reported that outspoken anti-immigration anchor Lou Dobbs is leaving CNN. He'll be replaced by a guy named Juan who'll do the job for $5 an hour.
- Conan O'Brien
-
Why You Should Cheer the Most Hated Company in America
By Dan Ferris Saturday, November 14, 2009 Why You Should Cheer the Most Hated Company in America -
Is It a Gold Bull Market or a Dollar Bear Market?
By Dr. Steve Sjuggerud Friday, November 13, 2009 Is It a Gold Bull Market or a Dollar Bear Market? -
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
The World's Biggest Players Are Buying Gold
By Jeff ClarkMonday, November 16, 2009
Central banks are net buyers of gold for first time in 22 years...
Precious-metals research firm GFMS reports central banks around the world bought more gold in the second quarter than they sold for the first time since 1987. And consider this:
And just last week comes this news from the Financial Times: The world's wealthiest families are also switching to gold. "Two-thirds of the 100 respondents to a survey by the Family Office Channel, a new website, said that super-rich families are now more likely to invest in gold and other commodities."
These trends are real and they're pushing gold higher by the day. But the real fireworks will start when Main Street catches gold fever. The gold market is tiny; ergo, any panic out of the dollar by the general public will send gold investments into the stratosphere. As Doug Casey likes to say, "It'll be like trying to push the contents of Hoover Dam through a garden hose."
But what exactly does a garden hose look like?
If we added up all the gold ever mined on the planet, its total value would equal no more than $5 trillion at today's prices. Yet, look at how this compares to the debt and bailouts and other monetary mischief of current governments...
* MZM (Money of Zero Maturity) is a measure of the liquid money supply in the economy. It consists of coins and currency, checking accounts, savings deposits, and money-market funds.
**Year-to-date figures.
Let's make this chart very clear. Of the $5 trillion in gold ever mined...
The implications are undeniable: When the greater public rushes into gold – whether in response to inflation, dollar woes, war, whatever – the price will be forced up by an order of magnitude.
While physical gold will protect our wealth, it's the gold stocks that can potentially make us wealthy.
Once again, to get a sense of the Lilliputian size of the gold industry, I compared it to several other leading industries and stocks.
The value, as measured by market capitalization, of all gold producers around the world is less than Wal-Mart's. Every gold stock would need to nearly double just for the industry to match ExxonMobil. The oil and gas industry is about 12 times bigger.
When your neighbors and relatives and co-workers and friends all start clamoring to buy gold stocks, the pressure on prices will be enormous, rocketing our positions upward.
Just putting these charts together stirred my feelings of restlessness, making me anxious for the mania in precious metals to arrive. But the timing is not up to us. Be patient. If you're invested in gold and high-quality gold stocks, you're on the right side of this trend.
Good investing,
Jeff Clark
Casey Research
P.S. Had you bought gold, say, four years ago, when it was around $450 an ounce, you'd be sitting on a nearly 130% gain. But you could have made up to three times as much with even the most conservative precious-metals investments – large- and medium-cap gold and silver producers. It's not too late to take advantage of this once-in-a-lifetime trend. Click here to find out more.
Precious-metals research firm GFMS reports central banks around the world bought more gold in the second quarter than they sold for the first time since 1987. And consider this:
- Amount of gold France will sell this year: zero
- Amount of gold Germany will sell this year: zero
- Amount of gold Switzerland will sell this year: zero
And just last week comes this news from the Financial Times: The world's wealthiest families are also switching to gold. "Two-thirds of the 100 respondents to a survey by the Family Office Channel, a new website, said that super-rich families are now more likely to invest in gold and other commodities."
These trends are real and they're pushing gold higher by the day. But the real fireworks will start when Main Street catches gold fever. The gold market is tiny; ergo, any panic out of the dollar by the general public will send gold investments into the stratosphere. As Doug Casey likes to say, "It'll be like trying to push the contents of Hoover Dam through a garden hose."
But what exactly does a garden hose look like?
If we added up all the gold ever mined on the planet, its total value would equal no more than $5 trillion at today's prices. Yet, look at how this compares to the debt and bailouts and other monetary mischief of current governments...
**Year-to-date figures.
Let's make this chart very clear. Of the $5 trillion in gold ever mined...
- The U.S. government has thrown more than twice as much at the economy in the past 12 months.
- The U.S. debt is more than double this amount so far this year.
- Total global government bailouts are almost four times larger. (This is a conservative figure. One estimate puts it at $24 trillion.)
The implications are undeniable: When the greater public rushes into gold – whether in response to inflation, dollar woes, war, whatever – the price will be forced up by an order of magnitude.
While physical gold will protect our wealth, it's the gold stocks that can potentially make us wealthy.
Once again, to get a sense of the Lilliputian size of the gold industry, I compared it to several other leading industries and stocks.
The value, as measured by market capitalization, of all gold producers around the world is less than Wal-Mart's. Every gold stock would need to nearly double just for the industry to match ExxonMobil. The oil and gas industry is about 12 times bigger.
When your neighbors and relatives and co-workers and friends all start clamoring to buy gold stocks, the pressure on prices will be enormous, rocketing our positions upward.
Just putting these charts together stirred my feelings of restlessness, making me anxious for the mania in precious metals to arrive. But the timing is not up to us. Be patient. If you're invested in gold and high-quality gold stocks, you're on the right side of this trend.
Good investing,
Jeff Clark
Casey Research
P.S. Had you bought gold, say, four years ago, when it was around $450 an ounce, you'd be sitting on a nearly 130% gain. But you could have made up to three times as much with even the most conservative precious-metals investments – large- and medium-cap gold and silver producers. It's not too late to take advantage of this once-in-a-lifetime trend. Click here to find out more.
NEW HIGHS OF NOTE LAST WEEK
Starbucks (SBUX)... coffee
Hecla Mining (HL)... silver mining
Gold Miner ETF (GDX)... our rebound trade is a whopper
Silver Wheaton (SLW)... silver royalties
Royal Gold (RGLD)... gold royalties
Goldcorp (GG)... gold mining
IAMGOLD (IAG)... gold mining
Barrick Gold (ABX)... gold mining
Newmont Mining (NEM)... gold mining
Keegan Resources (KGN)... gold mining
Petrobras (PBR)... Big Oil
Bristol-Myers (BMY)... Big Pharma
Altria (MO)... Big Tobacco
Google (GOOG)... Big Search
Microsoft (MSFT)... Big Software
Disney (DIS)... Big Mouse
S&P Gold ETF (GLD)... Big Trend
Intuitive Surgical (ISRG)... robotic surgery machines
Rockwell Collins (COL)... military-industrial complex
Northrop Grumman (NOC)... military-industrial complex
McDonald's (MCD)... obesity-industrial complex
Coca-Cola (KO)... obesity-industrial complex
U.S. Healthcare Provider ETF (IHF)... an unlikely new high
Venture Index... a stealth bull market
Australian Dollar... commodity currency
NEW LOWS OF NOTE LAST WEEK
Apollo Group (APOL)... we're finally right on this one!
WesBanco (WSBC)... bank
First Busey (BUSE)... bank
First Merchants (FRME)... bank
Synovus Financial (SNV)... bank
First Commonwealth (FCF)... bank
Citizens & Northern (CZNC)... bank
Smithtown Bancorp (SMTB)... bank
Herald National Bank (HNB)... bank
Republic First Bancorp (FRBK)... bank
Southern Community Financial (SCMF)... bank