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Wealth Building Strategies

Craig Johnson Still Believes US Stocks Will Climb for Years - Here's Why

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Posted by Craig Johnson via Financial Sense

on Friday, 26 May 2017 07:51

BL04 bull jpg 2037450fThe following is a summary of our recent Financial Sense Newshour podcast, which aired on Saturday here and on iTunes here.

The S&P 500, Dow Jones Industrial Average, and Russell 2000 have moved sideways over the last couple of months as global markets have outperfomed. Looking at long-term trends and forces, however, US stocks should continue in a structural bull market that will last years more, Piper Jaffray's Craig Johnson recently told Financial Sense Newshour.

Long-Term Bull Market

We aren’t simply in a bull market, Johnson noted. Investors need to think of this specifically as a long-term, structural bull market.

There are two big forces coming to bear that will keep markets structurally bullish, Johnson stated. The current market has about 20 to 25 percent fewer stocks than in 2000. Also, we’re seeing companies buying back a huge amount of their own stocks.



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Wealth Building Strategies

Marc Faber on Canada, Real Estate and Investing in Canada

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Posted by Marc Faber - Gloom Boom & Doom Report

on Tuesday, 23 May 2017 07:44

Excess global liquidity pushing Canadian Real Estate and other topics. One point Marc makes is that when the US stock market comes under pressure money will begin to flow into resource stocks and a lot of money will flow into Canada. 

...related from Lance Roberts: The Markets Have Already Priced In Positive Events

Screen Shot 2017-05-23 at 7.15.50 AM



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Wealth Building Strategies

Dying Shopping Malls and Wealth Managers

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Posted by Martin Armstrong - Armstrong Economics

on Tuesday, 16 May 2017 07:34

Ticker-TAPE-242x300....also from Martin: The Coming Central Bank Crisis

People talk about the changing environment. In the financial world around us, things are also changing dramatically. What use to be is no more. There are no real ticker-tape parades any more and future pits are closing opting for online trading. What is changing and why can we not see it? The internet has changed the way people shop around the world with the retail sector currently dominated by Amazon, accounting for almost 65% of online sales.   Amazon pasted Walmart (in market cap) back in 2015 and within the past two years has grown in value to be worth twice as much. Large department stores and the more traditional malls are closing but this is happening as retail spending continues to grow. Admittedly, online merchants have made it far easier, tap a button and our goods arrive at the doorstep the next day, but obviously at the expense of shop staff. The more comfortable we get with online retail the more intelligent we are shopping around and doing it ourselves. Is having the ease of service and renewed confidence a major influence upon why we are turning to index trackers and ETF’s rather than pay a money manager 2% to do it for us?

The ETF market has ballooned since the early 2000’s and is now worth approximately $2.5tn. With this “online” competition, the rumours are that the fees have been reduced to an almost nothing, with money managers taking just 20bp on the fund in the hope that they can make additional returns on the bid/offer spread. One of the problems we could face however, is that the derivative (ETF) becomes more liquid than the underlying. The relationship will work fine in an orderly market but will be tested in extremely or volatile conditions. The concern should be when will Market-Makers widen their spreads so just ensure you are not the last one to see the problems.

 



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Wealth Building Strategies

Here’s What’s Next for China!

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Posted by Mik Burnick - MoneyandMarkets

on Monday, 15 May 2017 14:24

Chinese stocks have dropped for four straight weeks to their lowest levels in seven months, following a government crackdown on financial leverage.

In fact, the Chinese policy-makers’ crackdown on leverage has already erased about $500 billion from the value of the Red Dragon’s stocks and bonds.

There’s no doubt in my mind that China’s credit boom was getting a little out of control. Take a look at this Bloomberg Intelligence chart.

WAVE-CHART

 

 

 

 

 

 

 

 

 

 

 

 

 

You can clearly see that since 2008, China’s total debt as a percentage of GDP has skyrocketed – from about 160% in 2008 to almost 260% in 2016.



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Wealth Building Strategies

An Amazingly Simple Investing Strategy

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Posted by Bill Bonner - Diary of a Rogue Economist

on Friday, 12 May 2017 08:05

investment-strategiesGUALFIN, ARGENTINA – As longtime Diary sufferers know, we don’t do real stock analysis.

We just look for Really Simple Patterns (RSPs).

The simplest we’ve discovered so far: If a market is cheap now, it will probably be less cheap before you get around to investing in it. If it is very expensive, it will probably be less expensive before you get out.

Simple Strategy

This RSP came to mind when Bonner & Partners analyst Chris Mayer, who advises us on our family portfolio, reminded us how much money we made on his latest recommendation.

For our family account, we keep one portfolio made up of country stock market ETFs. We select the countries based on this RSP: We look for the cheapest ones.

As recently as March 30, Chris advised us to put money into five cheap country stock market ETFs. And yesterday, imagining our delight, he sent us the following email update:

Amazing, it’s such a simple a strategy and yet works so well… 

So far (since March 30), you are up almost 10% in Turkey, almost 9% in Spain, 8% in Italy, and 5% in South Korea. The only downer is China, down 1%.

Overall, you’re up over 6%… since March. 

The only trouble is… we never got ourselves together to make the investment. And on April 15, we suddenly needed the money we had set aside for it to pay the IRS.

Trade of the Decade



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