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Worldwide spending on weapons has reached record levels amounting to well over $1tn last year, a leading research organisation reported today.
Global military expenditure has risen by 45% over the past decade to $1.46tn, according to the latest annual Yearbook on Armaments, Disarmament, and International Security published by the Stockholm International Peace Research Institute (Sipri).
Though the US accounts for more than half the total increase, China and Russia nearly tripled their military expenditure over the decade, with China now second only to the US in the military expenditure league table.
Global military expenditure has risen by 45% over the past decade to $1.46tn, according to the latest annual Yearbook on Armaments, Disarmament, and International Security published by the Stockholm International Peace Research Institute (Sipri).
Though the US accounts for more than half the total increase, China and Russia nearly tripled their military expenditure over the decade, with China now second only to the US in the military expenditure league table.
- The Guardian
Tea prices have hit record highs, rising almost 35 per cent in the past 12 months, because of the impact of simultaneous droughts in the main exporting countries.
Sharp output falls in India, Kenya and Sri Lanka have come as demand remains robust in spite of the impact of the economic crisis, exacerbating last year's deficit. "Major black tea producing countries have continued to record lower production... owing to dry weather conditions," said Sicily Kariuki, managing director at the Tea Board of Kenya, the industry regulator.
The wholesale price of the best black tea, or BP1, rose last week to $3.69 a kilogram at the weekly auctions in Mombasa, Kenya – above the previous record of $3.63/kg last year. Wholesale prices of the highest quality black tea have more than doubled from a decade low of $1.75/kg in December 2001.
Sharp output falls in India, Kenya and Sri Lanka have come as demand remains robust in spite of the impact of the economic crisis, exacerbating last year's deficit. "Major black tea producing countries have continued to record lower production... owing to dry weather conditions," said Sicily Kariuki, managing director at the Tea Board of Kenya, the industry regulator.
The wholesale price of the best black tea, or BP1, rose last week to $3.69 a kilogram at the weekly auctions in Mombasa, Kenya – above the previous record of $3.63/kg last year. Wholesale prices of the highest quality black tea have more than doubled from a decade low of $1.75/kg in December 2001.
- Financial Times
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The Right Amount of Gold Investors Should Own
By Dr. Steve Sjuggerud Tuesday, June 9, 2009 The Right Amount of Gold Investors Should Own -
These Stocks Rise Faster Than Any Other Investment Class in the World
By Tom Dyson Monday, June 8, 2009 These Stocks Rise Faster Than Any Other Investment Class in the World -
The Double-Digit Bear Market Income Secret Revisited
By Tom Dyson Saturday, June 6, 2009 The Double-Digit Bear Market Income Secret Revisited -
A Legendary Investor's Best Advice on Protecting Your Wealth
By Dr. Steve Sjuggerud Friday, June 5, 2009 A Legendary Investor's Best Advice on Protecting Your Wealth -
This Group of Stocks Is Preparing for a Moonshot
By Tom Dyson Thursday, June 4, 2009 This Group of Stocks Is Preparing for a Moonshot
If You're Looking to Sell Your Treasuries, Here's the Best Time
By Tom DysonWednesday, June 10, 2009
Two weeks ago, GM declared bankruptcy... and the S&P 500 rose 2.6% – one of the best rallies of the year – after the news came out.
How could the stock market rise the same day as one of the world's largest and most important companies declared bankruptcy?
It's simple. The stock market already suspected GM would declare bankruptcy... so the news came as no surprise. As traders say, the bad news was already "priced in." Monday's rally was almost like a sigh of relief from investors that this saga had ended.
Business-school teachers will tell you the stock market is efficient. What they mean is, you can't make money using public information to make trading decisions. Most of the time, that's true.
Here's the thing: Occasionally, the market loses its efficiency and you can make money from public information. I've found one of those situations in the government bond market. Today, I'd like to share it with you...
Two major players are at work in the government bond market right now: the Treasury and the Fed. The Treasury sells $200 billion in bonds and notes every month... mostly in the first and last week of each month. The Fed recently started buying bonds. Last month, it bought $50 billion... spread evenly throughout the month.
You wouldn't think the Fed's purchases and the Treasury's sales would affect government bond prices on a day-to-day basis. There's nothing surprising about either the Treasury or the Fed's activities. Their moves are predictable, routine, and transparent. Both agencies post their intended buys and sells on government websites well in advance. (The calendar for Treasury issuance is available to the public at the Treasury's website here. And you can see the Fed's purchase schedule here.)
The market should anticipate these transactions weeks before they actually take place. But that's not what I've found...
I've noticed the bond market falls at the beginning and end of the month, under the pressure of the huge government issuance. But in the middle of the month, when the Treasury's issuance dries up but the Fed is buying, prices rise.
If I'm right about this relationship, to make a profit, all you have to do short Treasury bonds before the big Treasury auctions of the two-, five-, and seven-year notes around the fourth week of the month and then cover your position after the Treasury auctions the three-, 10-, and 30-year bonds around the second week of the following month.
If you'd followed this strategy for the last six months, you would have made money six times out of six trades... generating an average 3.34% profit per trade with an average holding period of 19.5 days. That's an annualized gain of 62.5%.
In the last week of May, the Treasury auctioned $101 billion in two-year, five-year, and seven-year bonds. It was the largest three-day issue of government bonds in history. And this week, the Treasury will auction another $65 billion in three-year, 10-year, and 30-year bonds... another huge auction.
Bonds have cratered in the last 10 trading sessions under the weight of this huge supply. But over the next two weeks, between June 11 and June 23, the Treasury won't auction any bonds. If this year's trend continues, bonds prices will rally over these two weeks. If you're trying to unload a position in Treasuries, that's the best time to do it.
You can also trade the pattern... To play the rallies, buy the iShares Barclays 7-10 Year Treasury Fund (IEF). To play the declines, either short IEF... or buy the UltraShort Lehman 7-10 Year Treasury (PST), which rises when Treasury bonds fall.
Good investing,
Tom
P.S. Make sure you check out Across the Curve. This blog is the best place to get commentary on the Treasury and the Fed's activities. The author, John Jansen, used to work for the Federal Reserve Bank of New York before becoming a career bond trader. It's well written, easy to understand, and updated throughout the day.
How could the stock market rise the same day as one of the world's largest and most important companies declared bankruptcy?
It's simple. The stock market already suspected GM would declare bankruptcy... so the news came as no surprise. As traders say, the bad news was already "priced in." Monday's rally was almost like a sigh of relief from investors that this saga had ended.
Business-school teachers will tell you the stock market is efficient. What they mean is, you can't make money using public information to make trading decisions. Most of the time, that's true.
Here's the thing: Occasionally, the market loses its efficiency and you can make money from public information. I've found one of those situations in the government bond market. Today, I'd like to share it with you...
Two major players are at work in the government bond market right now: the Treasury and the Fed. The Treasury sells $200 billion in bonds and notes every month... mostly in the first and last week of each month. The Fed recently started buying bonds. Last month, it bought $50 billion... spread evenly throughout the month.
You wouldn't think the Fed's purchases and the Treasury's sales would affect government bond prices on a day-to-day basis. There's nothing surprising about either the Treasury or the Fed's activities. Their moves are predictable, routine, and transparent. Both agencies post their intended buys and sells on government websites well in advance. (The calendar for Treasury issuance is available to the public at the Treasury's website here. And you can see the Fed's purchase schedule here.)
The market should anticipate these transactions weeks before they actually take place. But that's not what I've found...
I've noticed the bond market falls at the beginning and end of the month, under the pressure of the huge government issuance. But in the middle of the month, when the Treasury's issuance dries up but the Fed is buying, prices rise.
If I'm right about this relationship, to make a profit, all you have to do short Treasury bonds before the big Treasury auctions of the two-, five-, and seven-year notes around the fourth week of the month and then cover your position after the Treasury auctions the three-, 10-, and 30-year bonds around the second week of the following month.
If you'd followed this strategy for the last six months, you would have made money six times out of six trades... generating an average 3.34% profit per trade with an average holding period of 19.5 days. That's an annualized gain of 62.5%.
In the last week of May, the Treasury auctioned $101 billion in two-year, five-year, and seven-year bonds. It was the largest three-day issue of government bonds in history. And this week, the Treasury will auction another $65 billion in three-year, 10-year, and 30-year bonds... another huge auction.
Bonds have cratered in the last 10 trading sessions under the weight of this huge supply. But over the next two weeks, between June 11 and June 23, the Treasury won't auction any bonds. If this year's trend continues, bonds prices will rally over these two weeks. If you're trying to unload a position in Treasuries, that's the best time to do it.
You can also trade the pattern... To play the rallies, buy the iShares Barclays 7-10 Year Treasury Fund (IEF). To play the declines, either short IEF... or buy the UltraShort Lehman 7-10 Year Treasury (PST), which rises when Treasury bonds fall.
Good investing,
Tom
P.S. Make sure you check out Across the Curve. This blog is the best place to get commentary on the Treasury and the Fed's activities. The author, John Jansen, used to work for the Federal Reserve Bank of New York before becoming a career bond trader. It's well written, easy to understand, and updated throughout the day.
SMALL RESOURCE STOCKS ARE STILL CLIMBING
After their worst year in history, small resource companies are still enjoying a huge rebound. The Toronto Venture Exchange Index is up 60% since its December low.
The "Venture" is home to many of the world's small energy and mining firms... so it's like the "Dow Industrials of small resource companies." These stocks go through wild booms and busts as commodity prices fluctuate. We introduced them to your watch list six months ago.
In 2008, commodity prices crashed, and the Venture suffered an enormous 75% fall. But as you can see from today's chart, small resource stocks are enjoying a steady climb higher.
In the short term, the Venture's uptrend looks due for a correction. No asset rises in a straight line without taking a break. But long term, the stocks represented by the Venture are some of the highest-potential assets in the world right now... so keep it on your watch list. It will soar if the government ends up stoking inflation. We'll keep you updated as it plays out.
The "Venture" is home to many of the world's small energy and mining firms... so it's like the "Dow Industrials of small resource companies." These stocks go through wild booms and busts as commodity prices fluctuate. We introduced them to your watch list six months ago.
In 2008, commodity prices crashed, and the Venture suffered an enormous 75% fall. But as you can see from today's chart, small resource stocks are enjoying a steady climb higher.
In the short term, the Venture's uptrend looks due for a correction. No asset rises in a straight line without taking a break. But long term, the stocks represented by the Venture are some of the highest-potential assets in the world right now... so keep it on your watch list. It will soar if the government ends up stoking inflation. We'll keep you updated as it plays out.