|
| Home | About Us | Resources | Archive | Free Reports | Market Window |
The White House on Tuesday said this year's federal budget deficit will reach $1.58 trillion, less than projected this spring but still historically high – and offered a bleak fiscal forecast that threatens to pose serious problems for President Barack Obama's economic agenda.
The new budget deficit forecast, which is expected to be close to estimates due later Tuesday from the nonpartisan Congressional Budget Office, is below the White House's $1.84 trillion May deficit number for the fiscal year ending Oct. 1, as administration estimates of funding needed for financial industry rescues declined.
But the new budget figure still means the deficit would total 11.2 percent of gross domestic product, an unusually high percentage.
The new budget deficit forecast, which is expected to be close to estimates due later Tuesday from the nonpartisan Congressional Budget Office, is below the White House's $1.84 trillion May deficit number for the fiscal year ending Oct. 1, as administration estimates of funding needed for financial industry rescues declined.
But the new budget figure still means the deficit would total 11.2 percent of gross domestic product, an unusually high percentage.
- Newsmax
Ivanhoe Mines Ltd. rose the most in almost two months in Toronto after saying changes to Mongolia's laws will help it complete an investment agreement on the Oyu Tolgoi copper-gold project "in the near future."
Ivanhoe gained C$1.94, or 20 percent [on Tuesday], to C$11.42 at 11 a.m. in Toronto Stock Exchange trading. The shares earlier climbed as high as C$11.55, the biggest intraday increase since July 2. The stock has more than tripled this year.
Oyu Tolgoi is about 80 kilometers (50 miles) north of Mongolia's border with China. Ivanhoe in March 2008 estimated the copper resources in the project at 78.9 billion pounds and the gold resources at 45.2 million ounces.
London-based Rio Tinto called Oyu Tolgoi "the world's largest undeveloped copper-gold resource" when it agreed to buy 10 percent of Ivanhoe in 2006.
Ivanhoe gained C$1.94, or 20 percent [on Tuesday], to C$11.42 at 11 a.m. in Toronto Stock Exchange trading. The shares earlier climbed as high as C$11.55, the biggest intraday increase since July 2. The stock has more than tripled this year.
Oyu Tolgoi is about 80 kilometers (50 miles) north of Mongolia's border with China. Ivanhoe in March 2008 estimated the copper resources in the project at 78.9 billion pounds and the gold resources at 45.2 million ounces.
London-based Rio Tinto called Oyu Tolgoi "the world's largest undeveloped copper-gold resource" when it agreed to buy 10 percent of Ivanhoe in 2006.
- Bloomberg
-
These Prices Are So Cheap, They're Stupid
By Tom Dyson Tuesday, August 25, 2009 These Prices Are So Cheap, They're Stupid -
How to Join a Compound Interest Club
By Tom Dyson Monday, August 24, 2009 How to Join a Compound Interest Club -
Why I Wouldn't Bet My Retirement on Stocks Right Now
By Chris Weber Saturday, August 22, 2009 Why I Wouldn't Bet My Retirement on Stocks Right Now -
The Best Way to Beat Higher Taxes
By Dr. Steve Sjuggerud Friday, August 21, 2009 The Best Way to Beat Higher Taxes -
China Is About to Buy a lot More Silver...
By Matt Badiali Thursday, August 20, 2009 China Is About to Buy a lot More Silver...
One Legend's Secret to Beating the Government
By Dr. Steve SjuggerudWednesday, August 26, 2009
In the private boardroom of the New York Stock Exchange, Eduardo Elsztain explained his strategy to a small group of investors...
I was there last week with Eduardo, sitting in the NYSE's impressive boardroom. (I was 10 feet from a priceless Faberge urn... Over 100 years ago, Russia gave it to the exchange as thanks for a $1 billion bond issue. Russia ended up defaulting on those bonds. Years later, the Russians asked for the urn back. The Wall Streeters said, "You'll get your urn back when we get our money back!" So the urn is still there.)
Eduardo was ringing the opening bell to commemorate a recent business deal, and I came along.
In my career, I've been fortunate to meet many extraordinary investors. Eduardo is one of my favorites. He has survived and prospered through more government-debt pileups and busts than any big investor I'm aware of. You see, Eduardo has lived his life in Argentina, which has a history of wiping out investors time and again.
Eduardo's firsthand knowledge of how to invest through an inflationary time is important right now... The U.S. government is inflating our money at an unprecedented, off-the-charts rate. Nobody is more experienced than Eduardo at profiting from this situation.
And right now, Eduardo is getting aggressive...
U.S. commercial real estate is the classic kind of crisis that attracts Eduardo's attention. So Eduardo came here looking for acquisitions and partnerships in commercial real estate. That's why he was in New York: He was commemorating his strategic investment in a U.S. real estate company.
From May of last year to March of this year, shares of this hotel operator fell roughly 90% from peak to trough. The market wasn't punishing this company in particular. Investors have sold everything related to real estate.
Eduardo knows hotels... He has owned world-class hotels through his Argentina commercial real estate company (called IRSA) for a dozen years. So he stepped up to the plate and bought 11%, with the right to own up to 20%.
Here's the thing: This company has five times as much debt as stock market value. Those debts aren't coming due for three years or more. But most people see those numbers and get scared off. Knowing Eduardo, though, I believe he's making a bet that:
1) The stock is underpriced. People have sold everything related to commercial real estate.
2) The hotel market is getting "less bad." Investing when things are getting less bad is what I've called The Secret to 1,000% Returns.
3) Most importantly, Eduardo expects inflation will arrive. That will push asset values higher in dollar terms and reduce the true cost of the company's debt.
It's a bold strategy: buying a stake in a highly indebted company while we're still in difficult financial times. But Eduardo has been through many crises... and many government inflations. He has conviction.
Eduardo is investing his money in a way that will "beat" the government at its own game. Sounds smart to me. If you're bold... and you believe the three things above... then you should consider investing like Eduardo, too.
Good investing,
Steve
I was there last week with Eduardo, sitting in the NYSE's impressive boardroom. (I was 10 feet from a priceless Faberge urn... Over 100 years ago, Russia gave it to the exchange as thanks for a $1 billion bond issue. Russia ended up defaulting on those bonds. Years later, the Russians asked for the urn back. The Wall Streeters said, "You'll get your urn back when we get our money back!" So the urn is still there.)
Eduardo was ringing the opening bell to commemorate a recent business deal, and I came along.
In my career, I've been fortunate to meet many extraordinary investors. Eduardo is one of my favorites. He has survived and prospered through more government-debt pileups and busts than any big investor I'm aware of. You see, Eduardo has lived his life in Argentina, which has a history of wiping out investors time and again.
Eduardo's firsthand knowledge of how to invest through an inflationary time is important right now... The U.S. government is inflating our money at an unprecedented, off-the-charts rate. Nobody is more experienced than Eduardo at profiting from this situation.
And right now, Eduardo is getting aggressive...
U.S. commercial real estate is the classic kind of crisis that attracts Eduardo's attention. So Eduardo came here looking for acquisitions and partnerships in commercial real estate. That's why he was in New York: He was commemorating his strategic investment in a U.S. real estate company.
From May of last year to March of this year, shares of this hotel operator fell roughly 90% from peak to trough. The market wasn't punishing this company in particular. Investors have sold everything related to real estate.
Eduardo knows hotels... He has owned world-class hotels through his Argentina commercial real estate company (called IRSA) for a dozen years. So he stepped up to the plate and bought 11%, with the right to own up to 20%.
Here's the thing: This company has five times as much debt as stock market value. Those debts aren't coming due for three years or more. But most people see those numbers and get scared off. Knowing Eduardo, though, I believe he's making a bet that:
1) The stock is underpriced. People have sold everything related to commercial real estate.
2) The hotel market is getting "less bad." Investing when things are getting less bad is what I've called The Secret to 1,000% Returns.
3) Most importantly, Eduardo expects inflation will arrive. That will push asset values higher in dollar terms and reduce the true cost of the company's debt.
It's a bold strategy: buying a stake in a highly indebted company while we're still in difficult financial times. But Eduardo has been through many crises... and many government inflations. He has conviction.
Eduardo is investing his money in a way that will "beat" the government at its own game. Sounds smart to me. If you're bold... and you believe the three things above... then you should consider investing like Eduardo, too.
Good investing,
Steve
THE GREATEST STOCK MARKET COMEBACK OF 2009
Of all the stock market "comebacks" this year, you'd be hard-pressed to come up with one more remarkable than the IYF.
Around November 2007 – well before the credit crisis took shape – we produced a chart of the IYF and predicted the chart would end up looking worse and worse.
Like copper, Intel, and Cummins, the IYF is an asset we keep a close eye on. This investment fund is loaded with the "who's who" of American finance. Major holdings include Bank of America, Goldman Sachs, Visa, JP Morgan, and Wells Fargo. These are the businesses that rise and fall with America's ability to pay off credit cards, service mortgages, start new businesses, and just generally "get along."
On cue, this fund was crushed from November 2007 to March 2009... losing over 75% of its value. But as we've been saying in DailyWealth for a while now, "It's amazing what several trillion dollars will to do goose an economy." Buttressed by taxpayer bailouts, the IYF has made a remarkable comeback. It now trades at the same level it did last October. Whether you agree with the bailouts or not, this is one chart we have to watch... For as long as the IYF is high and rising, it's a sign folks are still throwing money around, no matter if it's "real" or not.
Around November 2007 – well before the credit crisis took shape – we produced a chart of the IYF and predicted the chart would end up looking worse and worse.
Like copper, Intel, and Cummins, the IYF is an asset we keep a close eye on. This investment fund is loaded with the "who's who" of American finance. Major holdings include Bank of America, Goldman Sachs, Visa, JP Morgan, and Wells Fargo. These are the businesses that rise and fall with America's ability to pay off credit cards, service mortgages, start new businesses, and just generally "get along."
On cue, this fund was crushed from November 2007 to March 2009... losing over 75% of its value. But as we've been saying in DailyWealth for a while now, "It's amazing what several trillion dollars will to do goose an economy." Buttressed by taxpayer bailouts, the IYF has made a remarkable comeback. It now trades at the same level it did last October. Whether you agree with the bailouts or not, this is one chart we have to watch... For as long as the IYF is high and rising, it's a sign folks are still throwing money around, no matter if it's "real" or not.