This company is making money hand over fist on China’s torrent of migrants back into the provinces. I recommend you buy shares in the coming weeks whenever the share price dips betwee $15 and $17. Hold in anticipation of gains of 20-25% by March. Click here to view…

by J. Christoph Amberger

Baltimore — (TFN): Is China about to single-handedly save the world economy with its trillion-dollar stimulus plan?

Some of my esteemed colleagues are again dreaming of a fresh, new commodities boom Made in China.

They may be in for a rough awakening. Because the credit crunch has teamed up with plummeting U.S. consumer spending to hit China where it hurts.

Some experts believe that in 2009, we might see export growth in China go down to zero.

That means mass unemployment in the Pearl River Delta… and a reverse mass migration out of the industrialized areas back into the Chinese hinterlands. In fact, that migration has already begun.

I’ve found one company that is currently making money hand over fist on this reverse torrent of migrants. I’ve written it up as your HSC Hot Stock Pick of the Week.

I recommend you buy shares in the coming weeks whenever the share price dips betwee $15 and $17. Hold in anticipation of gains of 20-25% by March.

If I’m wrong on this and Chinese manufacturing activity picks up considerably… well then, we’ll be set for waggonloads of coal and iPhones. Click here for our report.

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Article first published on Today's Financial News

Hot Stock Pick of the Week: Profit from China’s Export Crisis

As America enters the holiday season, we take a look ahead: What can we expect for the last weeks of 2008… and beyond! View it here!

by J. Christoph Amberger

Baltimore — (TFN): Welcome to TodaysFinancialNews.com. I’m . The Fall of 2009 will remain a fixed memory for most investors. Financially, it was either the beginning of the end for global prosperity… or, at best, a painful reminder of just how subjective the definition of “value” turned out to be after all.

December still packs a punch. We will probably see annual valuation lows bottoming around the end of the second week. Afterwards, it’s anyone’s guess. I think we’ll have to get used to painful sideways markets as the vicious cycle of not spending and the resulting corporate bankruptcies takes a hold for most of the coming year.

Still, there will be opportunity! Investors expect President-elect Obama to make good on his campaign promise to lift restrictions on federally funding human embryonic stem cell research.

In fact, many foreign stem cell researchers now fear that even private and institutional U.S. funding may be “repatriated” to U.S. companies.

No matter how long it may take for federal dollars to have a measurable effect on companies’ actual bottom lines, stem cell research will make headlines in the weeks ahead.

Use the current market slump to position yourself for publicity-driven price spikes in some of the best-situated stem cell stocks.

We’ve found three of the hottest stem cell stocks around. Each has winning potential… and is currently selling at bargain rates! Invest now… and you could see gains of 50%, 100%, even 200% within the first two quarters of 2009.

These stocks are priced below $5 each. Even a moderate investment may pay off handsomely if the reinstatement of federal funding triggers the wave of investor interest we expect it to!

We’ve posted a Thanksgiving Special Report for you right on TFN’s home page. Please follow this link!

ALSO: I urge you to sign up to our free email letter — you can do so right here…

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Article first published on Today's Financial News

Happy Thanksgiving… and a glimpse of things to come

Forecast for 2009: Prepare for themost dangerous military stand-off since the end of the Cold War! By February 20, 2009, the world will be rocked as Russian special forces, wearing Gazprom (OTC:OGZPY) security uniforms, will invade Ukraine to protect the natural gas pipeline into Europe. Russian stocks will plummet as skittish investors flee Moscow for good. But three companies stand to make a mint. Click here to view…

by J. Christoph Amberger

Baltimore — (TFN): On Oct. 19, Joe Biden predicted that the Obama Administration would be put to the test by an “engineered” crisis within 6 months. Just like Kennedy. In fact, he guaranteed it. Twice!

We agree. We think we know where it’s going to hit. We think we know how. And we’ve determined that a small group of forward-thinking investors could turn this situation into gains of 200… 300… maybe even 400%! We want you along for the ride!

Our investigation indicates that Russia is prepared to strike within four weeks after the new president is sworn in. And strike hard. When that happens the global balance of power will be stretched to its breaking point. Financial markets, just barely out of the woods, will recoil in terror.

But those investors smart enough to follow our advice could walk away with substantial gains. The events we outline in this report may disturb you… even shock you

You might think that it’s in your own best interest to sell your remaining stock portfolio and wait out the coming crisis!

The TFN team has created a brand-new special report, TURMOIL STOCKS: Three Explosive Energy Stocks That Could Double Your Money Before 2010. Learn how you can access it here.Similar Posts:

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Article first published on Today's Financial News

Cold War II? Prepare for the Coming Energy Stand-off

On November 4, Americans will elect liberal super majorities to absolute control of White House and Congress. Within a year, the Judicative, too, will have been reshaped based on redistributionist dogma. Press and academia are already under their control. And recent “bailouts” have entrenched government deep in the heart of key industries. We’re entering the most dangerous period in American history. Read on…

by J. Christoph Amberger

Baltimore — (TFN): As the campaign winds down, we’re already getting a taste of what passes for reality among those most likely to succeed.

“If the Democrats win, and have substantial majorities, the Congress of the United States will be more bipartisan,” said Speaker of the House Nancy Pelosi on October 27. That makes complete sense… as long as you interpret “bipartisan” as meaning “without effective opposition.” In this new, liberal (or old, totalitarian) sense of the word, a mugging thus may be regarded as the pinnacle of bipartisan decision making. (And if Obama’s theories on constitutional law are turned into policy, that mugging may no longer be a matter for criminal law… but for social empathy.)

Suburban stay-at-home moms are still decorating their $40,000-dollar import cars with “Hope” and private school stickers. Oh, the humanity! But it’s the promised “Change” that I am concerned about: In fact, I believe November 4, 2008 will turn out to be the worst day for democracy since January 30, 1933.

Not since the election of Adolf Hitler as German Chancellor has so much power been concentrated in the hand of a single party: It is not just the presidency that is at stake. But both Houses of Congress look like shoo-ins for absolute liberal majorities.

Which for all practical matters means an end to the constitutional system of checks and balances.

Among the first actions of the united socialist Executive and Legislative will be the assimilation of the Judicative.

Congressional Democrats have blocked the appointments of a sufficient number of Federal judges over the past years. After Nov. 4, there will be no parliamentary obstacles to a complete restocking of the judicial system with compliant judges. The lone hold-out may be the Supreme Court.

This in itself would be deeply troubling, even if there still were a free press left.

But America’s mass media have pre-empted forced assimilation by sickening and voluntary obsequiousness. Lenin’s proverbial “useful idiots” are already staffing the editorial offices and newsrooms of newspapers and television — and are eager to be restituted to former glory by their chosen government.

Joseph Goebbels wrote in his diary in 1933: “Radio and press are at our disposal. Even money is not lacking this time.” Sounds just like an internal Obama campaign memo, doesn’t it?

By the end of 2009, what’s left of the First Amendment may be controlled via reaffirmation of a government monopoly on airwaves and Internet: To be allowed to voice dissenting opinion, the remaining independent individualists will be forced to adopt collectivist sidekicks under a new “Fairness Doctrine.”

Thanks to “social empathy” as the new guiding light for the justice system, attempts to include divergent opinion in mainstream media through the courts are doomed to failure.

The most serious shortcoming of the Bush Administration’s last years — and there were many! — will be the injection of government into the economy. With government bureaucrats deeply entrenched in the boardrooms of key industries by virtue of recent “bail-outs”… and the under-handed unionization of workforces… there will be no more need to enforce redistributionist government policies in the courts.

This “New New Deal,” as some Democrats are already calling it, “will have the same result as the original one: It will turn a painful recession into a long, drawn-out Depression” writes Dick Morris.

In fact, a large electorate that is entirely dependent on government handouts is the best insurance for maintaining power. It is not at all in the best interest of the new administration to spur free-market economic development.

Accordingly, Obama will be able to parlay the hard economic times into a second term.

The coming eight years will be the most dangerous years for the foundations of American democracy since the Civil War.

In view of massive programs aimed at the redistribution of wealth and the redefinition of civil liberties, this will require a complete recalibration of private investment strategies in the months ahead.

Your future, your options and possibilities are at stake in this election. If we cannot change the outcome, we need to safeguard against these most dangerous times.

At TFN, we’ll be providing you with proven wealth building and wealth preservation strategies as long as we will be allowed to publish without government interference.

Please make sure you’re part of our network of information… and sign up to our daily e-letter for vital updates:

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Article first published on Today's Financial News

The Death of the American Dream

Markets are in violent flux. Double digit drops are followed by enormous gains.Why?  Simple: Hedge funds use every up to liquidate assets, driving prices down after every upward surge. How long will this last?

by J. Christoph Amberger

Baltimore — (TFN): The predecessors of TFN used to have a service called Extreme Volatility Speculator. They closed it down a few years ago because the words Extreme Volatility were scaring off potential customers.

How times have changed. These days, it’s no longer penny stocks, microcaps and special situations that would qualify for violent moves upward or downward.

We’re getting used to increases of 700, 800, almost 900 points in a day followed by 5, 7 or even 10% drops in the market. It’s not just emerging markets indexes. It’s staid, solid behemoths like the Nikkei, Hong Kong’s Hang Seng, and the Dow Jones Industrial Average.

In fact, some of the most volatile speculative stocks today used to be called value stock just a year ago.

Can we expect the markets to calm down any time soon?

Don’t count on it in the short term.

Hedge funds are still unraveling huge asset positions. Investors want their money back before they’ve lost more of their principal, or before new social empathy legislation punishes profitable investing with increased capital gains taxes.

Until December 31, be aware that every upward surge in the market will cause profit taking and selling…

And get prepared for a dark, dull period of subdued expectation in the first two quarters of 2009… and investors try to figure out when exactly the new Administration will drop the axe on investing as we know it.

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Article first published on Today's Financial News

Expect Maximum Market Volatility

Many believed economic development in Brazil to be on solid footing. But with commodities and oil prices crashing, that security may be crumbling away. Global economist Andrew Gordon explains where to find hidden profits.

Watch this video…

by Laura Cadden

Baltimore – (TFN): Of the “BRIC” economies (that’s Brazil, Russia, India, and China!), Brazil is often considered to be the most solid in the current crisis. Until June of this year, Brazil’s Bovespa was indeed the best performing major equity index in North or South America. Now—down 51 percent on a currency adjusted basis—it’s the worst! Are the days of wine and roses over for Brazil?

I’ve invited Andrew Gordon of Red Flag Insider to provide his expert opinion. Andy, what do you think actually accounts for the volatility right now in Brazil’s market?

Andrew Gordon: Well, Brazil is a big commodity producer, particularly in agricultural commodities: soy beans, orange juice, sugar. It also is a big oil producer. The economy is export-driven.

So what’s going on today, this big global slowdown, has really impacted on Brazil and will continue to. There’s no way getting around it. Brazil had a lot of things going for it—but it’s a matter of “live by the sword, die by the sword”. Their economy was thriving on the back of soaring oil prices, commodity prices. The economy was going great. There was a lot of spending. The middle class was very solid and thriving.

We know what it feels like because we’re the “other end” of it here in the U.S. One could say that we’re the cause or one of the main causes of Brazil’s troubles. We’re a link. We’ll continue to be linked.

****View the video here…

Laura Cadden: You’ve written that the country’s best oil reserves should sustain the economy. Well, we have Petrobras (NYSE:PBR) trading at the lowest point its been since February of 1999, I think. Do you still believe this to be the case?

Andrew Gordon: Yes, but I have to add a qualifier to that. And that is, in the long term, it is going to be a huge asset for Brazil. They have tremendous offshore oil reserves. They have a couple of new discoveries.

The thing is that they have been made in deep water. It’s not going to be cheap to get to the oil and these reserves. At the price of oil right now [we conducted this interview on October 8), it’s still a very profitable business for Brazil. If you see oil go below $85, I think that’s pretty close. Below $75, that’s the threshold where they may not get the investment necessary to develop those resources.

The problem now is it’s still profitable, but they can’t get the investment necessary because of the tight credit that exists. So there’s that side of it for Brazil.

So they’re having their problems. Their oil reserves will serve them very, very well in the long term. There’s no life saver here. They’re not getting rescued from their oil underneath the ground that they still haven’t produced. It’s not benefiting them right now.

Better for it to be under the ground while price is going down. When price starts to go up, they’ll produce it. They’ll do very fine.

Laura Cadden: Let’s move on to raw materials because of course about half of the Bovespa is made up of raw material producers. Vale (NYSE:RIO) for example, the world’s biggest iron ore producer, it’s at its lowest price level in 14 years. What do you think is going to happen with this sector?

Andrew Gordon: Commodities across the board have gone down. Brazil is very tied into the global demand for commodities. You have to remember that just a couple months ago, maybe more, maybe three months ago, Vale negotiated a 96 percent increase in iron ore prices with China, by far its biggest buyer.

I believe that agreement is still in place—although if the market no longer supports that kind of price, it’s going to be interesting: If and when China will step up to the plate and say: “Hey, I’m your biggest buyer. I don’t want to buy your iron ore at premium prices. We’re going to have to renegotiate.”

Since this impacts half of the stock market, is terrible. It’s not only current sentiment. Basically, the sentiment is: “Things are bad now and it’s going to get worse before it gets better.” With that sentiment you’re going to see the market probably fall a little more

Laura Cadden: You think it’s going to continue to go down at least another few months?

Andrew Gordon: I think it’s going to continue to go down. I don’t see the global growth story changing. I don’t see global growth turning around on a dime in the next few days. It’s just not going to happen. It’s going to be awhile.

The global recession, the U.S. recession, the European recession, what’s going on in China, it’s all now deeper than we had envisioned just a month ago. Every day you wake up, and things are deteriorating rather rapidly.

So, yeah, I think it’s going to go on at least a few more months

Laura Cadden: So are there any recommendations you’re providing to your readers regarding Brazil? Are there plays perhaps that you’re considering, or trades—puts on Petrobras, things like that?

Andrew Gordon: A put on Petrobras, one of my favorite companies! It sounds to me it has that sacrilegious ring. I’ve looked at Petrobras and it has been trading way down. If you had put a put on this a month ago, you would have made out quite nicely.

But I’m really not a big believer in chasing companies down. Not companies that have gone down substantially like Petrobras has already.

I’ve looked at their weekly chart just this morning and I saw that the stock is resting on its 200 week moving average. That’s a big support level for this stock. Conceivably it could provide support. The stock could bounce up from there.

If it doesn’t, if it blasts through this support, it keeps heading down, to me that’s a good indication of a continuing negative sentiment and of a commodity market that’s not going to support the price of the company.

On that basis I would seriously consider a put, but you’re going to have to wait a week or two to see that support level clearly overcome.

Andrew Gordon writes for the free e-letter, Investors Daily Edge.

****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Subscribe to our feed by email. Subscribe to our feed in your RSS reader.Similar Posts:

• Where is the End for Gold? – November 17, 2009

Article first published on Today's Financial News

Commodities Meltdown: Is Brazil’s Bovespa Going Bust?

It looks like debt has finally caught up with banks around the globe. The currency markets are being taken on a roller coaster ride as interest rates get slashed across the board. Global economist, Andrew Gordon explains where to find hidden profits.

Watch this video…

by Krista Das

Baltimore – (TFN):The banking crisis is being heard around the globe and government bailout stories are sounding all too familiar. I’ve invited international banking expert Martin Hutchinson from Money Map Report to get his take.

Martin, the Federal Reserve recently decided to provide funding for the paper market. This is an unusual role for the U.S. Central Bank. What do you think about this and the $700 billion bailout plan? Is too much government intervention going to create more problems in the long run?

Martin Hutchinson: I think it probably will, but the Federal Reserve backing the paper market is sensible. The banks have stopped lending not because they’re terrified of the credits they’re lending to, but because they’re trying to get their balance sheets smaller and if you’re leveraged 30 to 1, $30 for every dollar of capital and you’re trying to get to 10 to 1, the only way you can do that if people won’t give you much more money is to reduce your loans.

So therefore they’re not buying commercial paper, they’re not making loans, they’re not giving out new credit cards, etc. etc. So at the moment you’ve got the banks deleveraging and that’s messed up the commercial paper market so the fed’s buying a bit of commercial paper. They did that in the 70s and that’s pretty sensible.

The 700 billion is a different question because for one thing that’s going to hang around for five or ten years because it’s long-term mortgages; not commercial paper.

For another I think it’s probably necessary for the government to bailout the banking system, but there were cheaper and easier ways of doing it. They could do what Britain’s doing and put 87 billion into its banking system in the form of actually investing in the banks by preference shares.

The thing about preference shares in banks is you can figure out – they’ve got a fixed interest rate or coupon of eight or ten percent. You can figure out roughly what they’re worth. You can make sure that the investor’s getting a decent deal. You can put in a couple of terms about not allowing the executives to pay themselves too much and away you go. Eventually the executives want to pay themselves too much and they’ll pay you back and the taxpayer will come out whole.

Whereas buying these $700 billion worth of dodging mortgages, there’s no way that you know what those dodgy mortgages are worth because it’s not a mortgage against a regular house. It’s a bunch of securitized rubbish with a bit of mortgage here and a bit of mortgage there and all over the place.

So Wall Street are very likely to stitch up the taxpayer with the taxpayer ending up with $700 billion of mostly rubbish. So I think that was a terrible deal, but the commercial paper’s a decent one.

View the video here…

Krista Das: In your opinion where does the U.S.’ current financial crisis rank historically among past events such as the 1929 stock market crash and the collapse of 1987?

Martin Hutchinson: It’s worse than ’87 because that was really just a stock market crash and nothing else. It’s not as bad as ’29 yet. ’29 turned into the Great Depression and disaster for everybody because the government at the time made a lot of stupid moves to try and battle it.

One of them was they brought in a huge new tariff and another was they put taxes up at the bottom of a recession and a third was that they allowed the money supply to collapse when all the banks went bust.

Well this time the fed’s pumping out money like a madman and so money supply is certainly not collapsing even though banks are going bust.

The government hopefully is not going to put up taxes in the middle of a recession and we’re not going to have a huge new tariff even if we’re not going to reduce the ones we’ve got.

So, even though this is a bit like 1929 or particularly the sort of early 1931 position when you started having banks going bust, it’s most unlikely to turn into the Great Depression.

It’s probably more like the 1970s either here which was a long slow slide in the stock market or Britain where all the banks went bust in ’73-’74 and they had a short and very nasty dip and quite a lot of inflation and then gradually it sorted itself out.

Krista Das: The U.S. stock market has been inflated to an artificially high level over the past ten years or so. What’s it going to take for this market and how it relates to the economy as a whole to get back on track?

Martin Hutchinson: Well, its been inflated by too high a level because the Federal Reserve’s been printing money faster than economic growth since 1995. What that’s done is everybody’s gone out and bought assets and asset prices, housing and stock shot upwards. The people expected them to deflate after 2000 and instead the Federal Reserve pumped in more money so the stock market never deflated properly and housing prices shot up as well.

If you look at where the stock market was in early 1995, it was at about 4,000 and that’s where monetary policy changed. If you then add the growth in gross domestic product since then, it’s almost doubled, but not quite. GDP nominal in cash terms.

So that suggests that the Dow Jones should be at about 7,800 and that that would be a sort of middle level. So what you’ve really got now is not a crash and disaster and the ending of human civilization. What you’ve got is a return to normal levels and once it gets to around 7,800 there’ll be no reason for it to go down further.

Now probably it will go down further. It’ll over shoot. But then it’ll come back again and if you’re thinking of buying stocks, start buying them when it gets down into the 7,000’s or so.

Krista Das: Good point. What do you think about Russia’s recent move to lend its banks $37 billion? The Russian stock market seems to have reacted negatively just as the one in the U.S.

Martin Hutchinson: Well, the Russians are lending their banks $37 billion because the banks have all got in bad trouble because Russia’s got deflation. Their real problem is that oil prices went up to $147 and they thought they were going to get as rich as anybody and take over the world. Suddenly they’ve dropped back to 87 and at 87 Russia’s suddenly in a financial crisis.

So what they’re trying to do at the moment is throw money at the problem here and there, but they don’t really understand a capitalist system at all in Russia. Certainly the government doesn’t. There were some people that do that have got companies there.

You’ve got a country that’s making huge amounts of money out of oil and nothing much else and suddenly it’s making less money out of oil. So I think they probably have severe problems ahead and hopefully they won’t react to the severe problems by trying to invade somewhere.

Martin Hutchinson is an senior analyst for Money Map Report. Learn more about his service here.

**Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Subscribe to our feed by email. Subscribe to our feed in your RSS reader.

Article first published on Today's Financial News

Can government bailouts avert crash?

The lock-up of the financial system has thrown global markets into turmoil. Indexes are crushed. Stocks are crashing. Portfolios are decimated. Of course, we’ve seen it all happen before. Are the lessons of the Crash of ‘87 still applicable?

Watch this video…

by J. Christoph Amberger

Baltimore – (TFN): Back in my college days, I witnessed the 1987 Crash from the perspective of a student who had the Deutsche Mark-equivalent of $100 in his checking account, $2000 in savings, and a stock portfolio that, on a good day, tallied up to about $1,500.

Only there were no good days between October 2 and October 23 of that year.

If you’ve forgotten what happened back then, here’s a small recap: The Dow Jones chalked up an all-time high of 2,685 on August 14, 1987. After some rumblings in September, it began to crash on October 2. What now appears as a straight line down in the charts was actually a grueling retreat over three weeks. After October 23, it recovered for a bit… to plunge even deeper, to 1,766 by December 11.

Within three months, the Dow Jones Industrial Average had lost over 34% of its valuation.

My portfolio was shot. Young, disgusted, and chronically short on cash, I probably did the most idiotic thing of my life. I sold the remaining shares in my portfolio and converted the proceeds into beer.

It took me years — until 1989 — to start investing again.

Which really turns out to have been a stupid thing. What I should have done was take half of my savings, around $1000, and bought shares at depressed levels. Maybe just $50 worth of shares a week! Because two years later, stocks were right where they had been before what the nattering nabobs of the financial advisory industry by then were calling “Crashette of 1987″.

On October 9, we had the subdued anniversary of the Dow’s most recent all-time high… at 14,164. As of today, the Dow has lost about 31% of its valuation… and may have some way to go.

Stocks you buy at today’s levels will have to go up two thirds — or even double — to make up for that loss.

It seems impossible. But I look at it this way.

The October 2007 high represented a gain of 427.5% over the 1987 All-Time High… and a 702% gain over the 1987 Crashette Low.

And in the meantime, we’ve had a half-dozen mega booms and busts… all of which we turned into profitable wealth-building engines.

I for one will be making amends for my 1987 youthful indiscretion… and keep buying shares of ridiculously under priced stocks. Not for quick turnarounds, mind you — even though we still do that! But as long-term holds that will end up netting me 200, 300, maybe even 700% gains.

****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Subscribe to our feed by email. Subscribe to our feed in your RSS reader.Similar Posts:

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Article first published on Today's Financial News

Slow-motion Crash: Are there lessons to be learned from 1987?

As the financial crisis engulfs world markets, the dollar is soaring as commodities fall — or sputter. Could the United States become the next safe haven?

Watch this video…

by J. Christoph Amberger

Baltimore – (TFN): The dollar bears should be celebrating. Their dire predictions about debt catching up with the financial markets are coming true. The markets are plunging. Some, like the venerable London stock exchange, saw their valuations drop by the largest amount ever.

The papers tell you it’s so bad, you feel like digging up those old Gary North Y2K newsletters from the water-stained boxes in the garage… to find that advertising supplement for the three-year supply of dried butter and canned red wheat.

After all, a man’s gotta eat.

But the bears are eerily quiet. Not only is the dollar SOARING against their favorite currencies. Gold is lagging behind.

Now, if you look at this right, gold ought to be trading at $2,000 an ounce right now. Or more. Because this is the Second Coming… when the mass media and leaders of nations are using the terms "abyss" and "free fall" to describe the state of the financial system, people should be piling into bullion.

And they are. Make no mistake about it. Mints can barely keep up with the demand for Maple Leafs and Eagles and what have you.

Yet despite the demand and the backbreaking labor of the mailman, physical gold is trading at just $860 today… 15% below its 2008 (and inflation-unadjusted all-time) peak!

Worse even, the European central bankers who have been pointed out as veritable paragons of fiscal virtue for years are now in the same situation as everybody else. If not worse!

The Telegraph’s Ambrose Evans-Pritchard wrote last week:

"The risk of a dollar collapse is one for the distant future. Right now the world faces the opposite problem. There is a wild scramble for dollars as a $10 trillion pyramid of global lending based on dollar balance sheets ‘delevers’ with a vengeance. This is a ’short squeeze’ on those who have used the dollar for a vast global carry trade. International banks are facing margin calls on their dollar leverage. It is why the Fed has to provide $1.25 trillion in dollar liquidity for the entire global system, according to estimates by Brad Setser from the Center for Geoeconomic Studies.

"The crisis engulfing Europe, Asia and emerging markets, makes life easier for Washington. The United States is becoming a safe-haven again."

In fact, the Federal Reserve can now pump money into the economy without having to fear the swift revenge of the currency, debt, and commodity markets.

If you’re an investor holding stocks, these are the times to not look at your portfolio. It’s too late to sell now — so why cause yourself useless aggravation?

But the dollar has reversed the course it’s taken for the past 6 years. After oil, molybdenum and gold Ponzi schemes, chances are that the next asset bubble will be the U.S. dollar.

And that means fresh life-blood into the American economy.

Now is the time to break out your research into companies you always wanted to own but thought you couldn’t afford. We’re on the verge of an epic, once-in-a-lifetime wealth building opportunity!

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Article first published on Today's Financial News

Currency Reversal: Could the U. S. dollar be the next safe haven?

With Russian markets crashing to the lowest point in over a decade. They even suspended trading indefinitely last Friday. Will the Russian Bear recover? If so, how soon? Is now the time for investors to move in a grab the bargains? Martin Hutchinson of the Money Map Report gives TFN viewers his take.

Watch the video now.

by Laura Cadden

Baltimore (TFN): Just this week Russian markets have suffered their worst single day loss in 13 years. Is there still a bottom to come? Should investors avoid Russia for now? Or with stocks diving 20 percent is it time to shop for quick and significant bargains.

I’ve invited Martin Hutchinson of the Money Map Report to help us with these questions. Welcome back to the show, Martin. What do you think is the root cause of Russia’s financial meltdown?

Martin Hutchinson: I think like a lot of places it was in a bubble before it started. The oil price went to $147 and the people that run Russia multiplied 147 by the number of barrels they were producing and said yippee, we’re rich. I think a lot of the Russian people said that as well and obviously the Russian stock market said that.

But Russia is really a one-commodity economy these days, and with oil having gone from $147 to somewhere in the $80s, inevitably they’ve lost a lot of money in terms of export revenues, in terms of domestic economy and so that caused the stock market to crash. It’s now down about 60 percent from their peak.

Laura Cadden: What about their political maneuverings? Do you think they’ve played a part?

Martin Hutchinson: Well that certainly caused a crash in August when they invaded Georgia or sent troops into Georgia; whatever they did.

And I think the other problem is Russia is that you can’t be sure about Russian property rights. They really don’t have property rights. You get the company Ukas where the chairman was sent off to Siberia ‘cause Mr. Putin didn’t like him and it was actually the best run oil company in Russia.

You’ve got a problem where there aren’t good property rights. Investors aren’t happy and they shouldn’t be happy and the institutional investors haven’t been putting money in Russia and have been taking money out since August.

So I think for retail investors it’s a very risky proposition indeed.

Laura Cadden: Speaking of oil and commodities, where do you think they’re going to be heading by year’s end let’s say? Do you think they’ll continue to descend?

Martin Hutchinson: I would suspect they probably will. I mean the West is pumping money into every economy it can find with all the central banks lowering rates and obviously that’s going to tend to slow the decline, but I think you’ll probably see oil and commodities continue downwards because we’re clearly going into a fairly deep recession and that will stop demand for oil and commodities, both from the West and also from the emerging markets like China.

Russia is in real trouble because it’s a one-product economy. If the price of the product goes down then they will feel the pinch and they haven’t had this problem before. I mean in the 1990’s oil was permanently low and so they were trying to do something else. Then since 2000 its been bonanza time.

Laura Cadden: So do you think there is opportunity there for investors? Is there any stocks you would recommend people to load up on?

Martin Hutchinson: I’ve been nervous about Russia in general because I don’t like the fact that it doesn’t have good property rights. I don’t like the fact that the government’s not only a dictatorship. You can make money under dictatorships, but it’s a dictatorship that’s very, very difficult to predict and it’s a dictatorship that doesn’t I think understand the way the free market works.

So even if you had a really good successful Russian company that was doing something that made sense you could never be entirely sure that the government wouldn’t see it and decide to seize a piece of it in one way or another and that I think’s a bad recipe for investing.

It’s a pity, but there are a lot of bargains around now with everything down. So even though Russia’s down more than most I think you’re taking more risks than you should if you go there.

Laura Cadden: Thank you so much for your perspective. To learn more about Martin’s investment research service, The Money Map Report, go to www.moneymorning.com.

Last Week’s Top TFN Video:

Watch this video.

Laura Cadden interviews Karim Rahemtulla on how to invest in times of financial upheaval.

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Article first published on Today's Financial News

Russian market crash

This worst stock market crash in three generations is about to trigger an economic meltdown. What’s an investor to do? Is anyone ready to step up to the plate and give some useful advice?

TFN publisher J. Christoph Amberger takes his cue from FDR’s Fireside Chats. He puts practical perspective on a bleak outlook:

Provide for the present and secure as much cash as you can.

But keep your eye on the future and spend part of that cash on long-term, firesale-priced stock bargains. Just listen…

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Article first published on Today's Financial News

Fireside Chat: What’s an investor to do now?

It looks like debt has finally caught up with banks around the globe.  The currency markets are being taken on a roller coaster ride as interest rates get slashed across the board. Global economist, Andrew Gordon explains where to find hidden profits.

Watch this video…

by Krista Das

Baltimore – (TFN): Looking for a steady stream of passive income? As stocks plummet many investors are turning to corporate bonds. Joining us today is stock and bond analyst Andrew Snyder who writes for Hot Stock Confidential.

With the markets in constant flux government bail out supporting Wall Street and the threats of a major economic slowdown, are bonds a better investment than stocks?

Andrew Snyder: I’m not sure if better’s the best word in this case. Bonds are a very important part of a balanced portfolio. You need the bonds there to support the equity positions you’re going to get to build the real profit potential.

Bonds are, they’re very safe. They pay payouts twice a year and they do have some decent profit potential, especially right now.

****View the video here…

Krista Das: Andy, is it true that most safe bonds come with minimal interest rates and have little profit potential? Why invest in a bond paying four percent when the company’s dividend is four percent or more?

Andrew Snyder: Well, the point with the bonds is the payouts are pretty much guaranteed. With stocks and dividends they come and they go. Right now with the – the economy’s starting to look like a pretty good recession coming ahead, dividends might not be there. Revenues are going to start to go down. That money’s not going to be there, but those bonds will be there and their value will always be there.

Krista Das: You mention that bonds are fairly safe investments. Why do I hear the term junk bonds so often? What are these? Are they safe?

Andrew Snyder: Well for the most part they’re safe. Just like you and I have credit ratings, corporations have credit ratings from companies like Moody’s and Standard & Poor and when their credit ratings start to drop because of a potential bankruptcy or a black spot on their credit history from previous bond issues, they get low credit ratings and then their bonds are considered junk to the markets.

But a lot of those bonds still have really good profit potential. The further down they go the bigger the potential can be. So if you do your homework you can really, really make some money off them plus get their payments every six months.

Krista Das: I see. So what are some of the best bonds out there right now?

Andrew Snyder: Right now I like Harrah’s, the casino company. GM has some really good bonds out there and their credit rating has been bumped down, but they’re starting to turn things around and come back up.

There’s another company called American Media that has some interesting bonds. Go online, check out their different offerings and invest in the ones that are right for you.

Krista Das: Now if an investor does not want to get involved in the sometimes complicated world of bond investing, what other options could they try?

Andrew Snyder: Well there’s lots of options out there. Two of the best ones are mutual funds. There’s lots of funds that invest in various sorts of bonds. Talk to an advisor, figure out which ones are best for your portfolio.

Then there’s ETFs. These just follow bond indexes or whole bond funds. One of my favorites is the Vanguard short-term fund. It’s a symbol BSV and it has a lot of two year treasuries in it right now, which it pays about four percent every six months and it’s doing pretty good. Good opportunity.

Andrew Gordon writes for the free e-letter, Investors Daily Edge.

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Article first published on Today's Financial News

Currency Trading During a Global Meltdown

The worst stock market crash in three generations is about to trigger an economic meltdown. What’s an investor to do? Think of the present and secure as much cash as you can. But think of the future and spend part of it on long-term, firesale-priced stock bargains. Just listen…

by J. Christoph Amberger

Baltimore — (TFN): The worst crash since 2001… 1987… 1937. As the National Debt Meter ran out of digits on Time Square earlier this week, the comparisons of the current crash with earlier catastrophic events are on a sliding scale backward.

Tomorrow morning, they may compare today’s performance to 1929.

And yet it doesn’t quite feel like anything’s amiss. Stores are abundantly full of goods. So are the parking lots in front of them and the bags of supermarket shoppers. And as I was stopped at a red light driving my daughter to her violin lesson yesterday, I couldn’t help but marvel at the Latin American construction workers putting the last touches on a new Cheesecake Factory in a brandspanking new addition to our mall… across from a brand spanking new complex of apartments they’re finishing.

Next to me, a college girl in a $35,000 Mini Cooper was yakking it up on her cellphone, wearing $200 Jackie-O shades with lenses like saucers.

How odd, I couldn’t help thinking. We’re in a war that we’re unaware of in our daily lives… and we’re in a market crash nobody but the talking heads seem to notice.

Yet.

This is going to change today. Come Monday, companies all over America will start laying off people. It’s a reflex, and a natural one. Portfolio valuations have been destroyed by up to 20% on real estate… and 50-60% on stock portfolios. Even if the destruction of value is mostly theoretic for most people who don’t trade daily, it’s a chiller.

Come next week, we’ll see a spike in new unemployment filings. We’ll see a downturn in spending… and a collapse in company earnings across the board that will last through January… and probably well into the first quarter of 2009.

Now, my general recommendation is not to panic during market downturns like this. To the contrary, history has proven time and time again that the seeds of wealth are sown during market crises… by buying good companies at crash valuations.

This is exactly what you need to be doing over the next couple of months. Buy judiciously and in controlled quantities, mind you… maybe by investing a fixed amount in stocks every week. Set aside fifty or 100 bucks of beer money… skip the kids’ video games, don’t allow them to buy another CD or iTune… cut down on their Christmas list… take the money you’d spend on pizza or lunches until Christmas… and religiously invest it in stocks. Buy shares of Ford Motors (NYSE:F)…. refiner Alon (NYSE:ALJ)… “death services” provider Stewart Enterprises (NASDAQ:STEI)… buy General Electric (NYSE:GE) and General Motors (NYSE:GM) and General Mills (NYSE: GIS).

Buy them share by share. Instead of coffee… instead of gum… instead of your daily newspaper. WALK INSTEAD OF TAKING THE BUS. Buy $10 worth at a time… heck that buys you five shares of Ford today. Buy stocks at prices your father wishes he had bought them for back in the seventies.

But buy them gradually… and be prepared to experience some despair even then: No stock is ever cheap enough that you can’t lose another 90% of your principal!

Let’s not make any mistakes about it: Times will be tough. Your own wife will tell you you’re crazy. So compromise: Make sure you have cash on hand. Easier said than done, in many families: So cut down on expenses.

Keep the kids home for a semester rather than hand over tens of thousands of dollars to some college next term. Think their degree in Chicano Poetry or “International Relations” is important? Not if nobody’s hiring! Nobody cares!

Instead, take 10% of the tuition you saved and buy stocks in their names.

*******DID YOU WATCH THIS?*****

“The only way to make money in this market is to know what’s going on on the floor,” says Xcelerated Profits Report’s Karim Rahemtulla. Please don’t miss this Smart Trading Action Alert with Laura Cadden…

************************************

Did I say it often enough? Stop buying useless things: Start buying stocks! Start buying — and don’t stop! — NOW!

If you stay employed, keep paying into those 401(k)s and 403(b)s. In fact, max out your contributions. Invest for the long term.

And for crying out loud… don’t start buying gold now. Buy a gun instead!

The markets are wreaking havoc not only with your retirement nest egg, but with the balance sheets of hedge funds and the billionaires who’re propping them up. In the weeks ahead, dozens of funds will close. There will be a run on on principal. Funds will sell off everything they’ve hoarded over the past six years. Oil. Molybdenum. Copper. Indium. And gold.

Today is the turning point in global economic expansion. Be prepared to suffer. But think ahead: Over the next three months, the seeds of great fortunes will be sown. Cash is king in the coming weeks. But part of that cash needs to be converted into capital.

And please, make sure I can reach you with breaking news alerts to point out just what you need to look into. I urge you to sign up to our free email letter — you can do so right here…

Article first published on Today's Financial News

Cancel Christmas! Crash will squeeze economy… and create opportunity for legacy wealth

This provider of storage area networks and related services is lined up to have a good year. This is one of the rare companies set to grow even in tough economics times.

Watch this video.

by Laura Cadden, TFN

The amount of data produced in the digital age is said to double every three years. And the more we produce, the more we need to store. And that’s just where my latest Hot Stock Pick of the Week for Hot Stock Confidential subscribers comes in…

This company supplies storage area network equipment, and provides data center networking solutions and products.

In the 3rd quarter, the company saw a 90% increase in net income compared to the year prior. And with a P/E under 12 and a PEG of .72, this company is, quite simply, a good investment.

I’d love for you to get in on this confidential stock so please, simply click on this screen or go to www dot hot stock confidential dot com and become a member today!

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Article first published on Today's Financial News

No recession for this company

Believe it or not, in this nightmare of a market there ARE winners from commodities to energy. Take this company for example, that has repeatedly whipped up gains of 1088%, 777% and 355%.

Watch this video.

by Steve McDonald

Baltimore — (TFN): UTM today is going to focus on the big winners in the market this year. I know what you’re thinking, that won’t take much time. Well, you’re gonna be surprised.

In every market, no matter what is happening, there are winners. In the nightmare market we have been in it may seem there is no daylight at all, but there is.

Take the Insider Alert by Alex Green. In three option plays this year in Freeport McMoRan he had gains of 1088%, 777% and 355%.

In another play on Equinix there were gains of 323%, 314% and 188% on option play.

***Can’t bear to read more? How about you listen to it? ***

While Alex has had as tough a time as most people have in this market, it’s important to stop and take note that people are making money despite what’s happening.

The Oxford Trading Portfolio has had two big winners as well, 143% on Amazon and 204% on Cummins. And this is a buy and hold portfolio.

The Momentum Alert has had three big plays, two option plays, Warnaco for 268% and Genzyme for 147%. It also had a big stock play in Western Digital for 26%.[the options play was 194%, not the stock play.]

The ADR Alert had two winners in Allianz and Sun Tech Power for 160% each, and another one for 211% on Mercadolibre.

In the almost 25 years I have been banging my head against the wall in the stock market I have seen many periods where it seemed the world would end; the 1987 collapse, the saving and loan crisis, which by the way cost more in real dollars than the 700 billion this one is costing, 1994 with it’s endless interest rate increases, the collapse in the tech/internet market, 9/11 and now the credit crisis.

I must admit, this one did scare me. The day the money market fund broke the buck I thought it might be the edge of sanity creeping up on us.

But we made it, again. I think we’ll be better for it.

No matter what your state mind right now, when it comes to your money and investing, keep in mind, you have to be in it to make anything. If I have learned anything it’s that cutting and running only guarantees one thing, losses.

We have several great ways to take advantage of one of the best buying opportunities in the market in our lifetime. Don’t go over the cliff with the rest of the lemmings. This will turn around and you don’t want to miss it.

Give us a call at 888 570 9830 let us show you how to turn this into your biggest gain of the year.

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Andrew Snyder: Real estate bottom: Are we there or is a major drop on the way?

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Article first published on Today's Financial News

Triple Digit Gains Again and Again