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Wealth Building Strategies

Deflation and the Markets; are deflationary forces here to stay

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Posted by Sol Palha - Tactical Investor

on Friday, 08 September 2017 06:52

Machines are worshipped because they are beautiful and valued because they confer power; they are hated because they are hideous and loathed because they impose slavery. Bertrand Russell

Manufacturing output continues to improve, even though the number of manufacturing jobs in the U.S. continues to decline and this trend will not stop.  While some Jobs have gone overseas, the new trend suggests that automation has eliminated and will continue to eliminate a plethora of jobs.  As this trend is in the early phase, the momentum will continue to build in the years to come. 

Machines are faster, cheaper and don’t complain; at least not yet. So from a cost cutting and efficiency perspective, there is no reason to stick with humans.  This, in turn, will continue to fuel the wage deflation trend. Sal Guatieri an Economist at the Bank of Montreal in a report titled   “Wage Against the Machine,” states that automation is responsible for weak wage growth.

“It’s unlikely that insecurities from the Great Recession are still weighing, given high levels of consumer confidence,” he wrote. “However, automation could be a longer-lasting influence on worker anxieties and wages. If so, wages could remain low for a while, restraining inflation and interest rates.”

Guatieri goes on to state that “The defining feature of a job at risk from automation is repetition”.  This puts a lot of jobs at risk, many of which fall under the so-called highly skilled category today; for example, Accountants, Lawyers, Radiologists, X-Ray technician, etc.  

North American business order record number of robots 

In 2016, they order 35,000 robots, 10% more than in 2015.  But that is nothing compared to China, which ordered 69,000 robots in 2016, South Korea ordered 38,000 and Japan for its small size ordered 35,000 robots.  This proves that jobs are not going overseas but are being taken over by machines. Nothing will stop this trend; a trend in motion is unstoppable. 

The largest user of robots is the automotive sector; in North America, over 20,000 of the 35,000 robots went to the automotive sector. Once upon a time, over 80% of the work done in this sector was done by humans, but robots perform today over 80%. 

The total amount spent on robots in 2015 was $71 billion; experts project that this amount will surge to almost $135 billion by 2019.  The trend continues to gain traction.  Amazons purchase of whole foods and Lidl’s entry into the US market has triggered a grocery war, and automation is going to be one of the main ways to remain competitive in this industry.  Amazon already has a massive robot workforce; they use over 45,000 robots.  Sales of robots will triple from current levels by 2019

Robots 1

The number of robots sold in the US will jump by 300% over the next nine years, according to the ABI research. It’s simple math; more automation equates to fewer jobs. One industrial robot replaces about six jobs. For now, the automotive industry continues to lead the way, but as companies are pushed to become more competitive, we expect companies in every sector to embrace automation.  



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Wealth Building Strategies

Two Key Indicators Just Hit All-Time Records, But Look At What’s Happening With Gold & Silver!

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Posted by King World News

on Thursday, 07 September 2017 06:42

From Jason Goepfert at SentimenTrader:  “Looking at the flows for August, a few things stood out. Most notably, the continued big inflow into Technology and corporate bond funds. Over the past 12 months, both have seen record inflows.

KWN-SentimenTrader-962017

....continue reading HERE

also from King World News:

The Brutal War In Gold – Is A $10,000, $15,000, $20,000 Gold Price Really Possible?



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Wealth Building Strategies

Your Stock Our Take - Ten Peaks Coffee Company Inc. (TPK:TSX)

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Posted by Ryan Irvine - Key

on Tuesday, 05 September 2017 10:21

n our Your Stock, Our Take segment we take a question from a listener about, Ten Peaks Coffee Company Inc. (TPK:TSX), a unique BC-based small-cap which uses its proprietary process to decaffeinate premium green coffee – the company reported a strong second quarter this week, is it a BUY, SELL or HOLD?

 

new logo burlap bag



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Wealth Building Strategies

Gold Market Update - Very Bullish Indeed

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Posted by Clive Maund

on Tuesday, 05 September 2017 09:00

Price and volume action in gold in recent weeks has been very bullish indeed, as it moves towards completion of its giant 4-year long Head-and-Shoulders base pattern. We can see this to advantage on gold’s 10-year chart shown below. The volume pattern and volume indicators give the game away, and confirm that this is a genuine base pattern that will lead to a major new bullmarket in gold. Observe the volume build on the strong rise out of the lows of the “Head” of the pattern early last year, and how its even stronger on the rise this year out of the Right Shoulder low, and especially on the rally of recent weeks – the Accumulation - Distribution line has already reached its bullmarket highs of 2011, which is clearly a very positive sign. The new bullmarket hasn’t officially started yet of course and won’t until the price breaks out of the base pattern by breaking above the 1st band of resistance shown on the chart. That means that the days left to accumulate investments in this sector at good prices are numbered. 

gold10year030817b

About a week ago it looked like gold was going to roll over again and play dead as it had arrived at an important zone of resistance at its April and June peaks as we can see on its year-to-date chart, with the risk of its doing so being increased by the potential for a dollar rebound, which we will come to later, but it didn’t – instead it broke above this resistance to advance on strong volume, which drove volume indicators sharply higher, a bullish development. This has given gold a buffer to buttress it in the event of a near-term dollar bounce. 



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Wealth Building Strategies

Jim Rogers August 2017: A Fathers Lessons For Life & Investing

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Posted by Jim Rogers via Follow The Money

on Thursday, 24 August 2017 06:03

 

Screen Shot 2017-08-24 at 6.05.33 AMSegment 1: But Trump, you promised…
Segment begins at 04:20

Host asks Jim about the mounting difficulties in the Trump Administration. 

Highlights include:

- Is Trump’s pro-business agenda in peril?
- The cold reality of the investigation into Russia
- The importance of staying sharp in this market

Segment 2: A Father's Lessons for Life and Investing With Jim Rogers
Segment begins at 6:32

In this segment, highly successful global investor and author Jim Rogers shares his reason for writing a book to his daughters, as well as his experiences in traveling the entire world - twice. Topics include:

- A boy, his dreams, and the power of visualizing success
- Where are President Trump's trade wars?
- Investing in "hated" Russia
- Why the world looks different close to the ground
- Where is America headed?
- Common sense and uncommon wisdom from Jim

 



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