Month: May 2018

Americans favour Coffee over Financial Freedom

Americans favour Coffee over Financial Freedom

Towards the end of last year, we published an article titled  Americans favour coffee to stock market investing where we demonstrated that an overwhelming majority drink coffee as opposed to investing in the stock market’ 61% of Americans drink coffee on a daily basis as opposed to the 48% that invest in the market. On an annual basis, Americans spend about $1200 on coffee. If they put this money into the market and allowed compound interest to do its magic, it could grow into a nice tidy sum over a period of 20 years.

The latest data provides even more attention-grabbing data. Starbucks is one of the most popular places to get a cup of Java from, even though (in our opinion) it does not come close to ranking as the best place to have a cup of coffee.  The picture below illustrates just how much people love their daily coffee.

Individuals are more interested in loading their prepaid Starbucks cards with money as opposed to contributing to their 401K plans. This is a clear illustration of how people today are more concerned with how they look or what image they portray as opposed to building a sustainable nest egg. S&P Global Market Intelligence states that Starbucks has $1.2 billion in unspent funds; these are funds that customers have added to their prepaid cards.  In 2014, the same customers added $614, Million, so the jump to $1.2 billion is actually stunning. This is more than the total deposits some banks take in for the year.  In the same period, the average contribution to a 401K increased by a measly 4.1%.

From a psychological perspective, it reveals that the majority have still not embraced the markets. According to bankrate.com, a significant portion of the population states that they don’t have enough money to invest in stocks. Based on the chart below, 53% don’t have enough money to purchase stocks, and 21% don’t know enough about stocks; this does not bode well for the current generation. However, these chaps seem to have no qualms about purchasing an overpriced cup of coffee that they could easily make at home.

50 don't invest in amrket

Negative rates

We have spoken at length on this topic and as we have noted previously the small miserable rate hike the Fed initiated is not the beginning of a new trend but a desperate effort on its part to convince the masses that this economic recovery is real. Any person with a grain of common sense understands that the only thing driving this economic recovery is hot money; if the supply of hot money is cut, the recovery will end instantly.   This is why nation after nation continues to jump onto the negative rate band waggon and it is just a matter of time before the Fed is forced to join the party. When negative rates hit the US, it will propel corporations into taking, even more, risk.  We suspect share buybacks will surge to levels that might make the current purchases seem sane in comparison.

Conclusion

The Fed’s strategy all along has been to foster an environment that favours speculators and punishes savers and they have succeeded in achieving their objective. The next stage will be to force these savers to speculate, and that is when we can expect this market to enter into the bubble phase. The Fed’s sole purpose since it began interfering with free market forces has been to facilitate boom and bust cycles.  This bull market will only end when the masses finally give into it and in doing so set the stage for a bubble. History is replete with examples of how bull markets end. No bull market has ended without mass participation; the crowd has to turn euphoric before the bull kicks the bucket.

 

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Currency wars detonate

Currency wars detonate

Over the years we have often stated that every that every major bull market will experience at least one back-breaking correction. Usually, the correction culminates with a 50% pullback from the highs. In the case of Gold, this would equate to a pullback to $960.  The precious metal’s sector had a beautiful lope that began in 2003 and ended with a spectacular dash in 2011.  To think that the Gold bull would continue unabated would be, to put it mildly, wishful thinking.  Sadly, many Gold bugs opted for this line of thought, rather than dealing with reality; the reality being that it was time for the entire sector to let out some steam.

Gold bugs have a bad knack for losing contact with reality and embracing the illusory.  When Gold topped out in 2011 and started to correct, they began to recite “the buy on the dip” mantra. When it appeared to have put in a bottom in the middle of 2012, they became Euphoric and started to hum “death to the dollar”. However, this euphoria should have faded when Gold refused to trade to new highs, and instead put in a series of lower highs (look at the chart below).  A series of lower highs, after a very long run, is usually a negative omen.  The Gold bugs were, however, unfazed and continued to sing “Kumbaya”, but alas no one was listening, and the correction gathered steam.

Gold market topping 2015

We are using the ETF, GLD for illustrative purposes; it mimics the price of Gold fairly well.  Note when a market is in a bullish phase, it does not put in a series of lower highs; this is a signal of exhaustion.  This occurred twice over the past ten years; the first incidence lasted from 2008 to 2009 and resulted in gold shedding 30% of its gains. The second time, the topping formation was much wider and gold from high to its current low hashed roughly 43%.   History has a tendency to repeat and the repeat pattern  (on a much broader scale) from 2008-2009, served notice to the astute investor that all was not well, and that it was time to bank some of those profits.  We noticed these signals and the many negative divergences that our indicators were generating and advised our subscribers to close the majority of their precious metal positions in 2011.

From approximately Feb of 2013 to March of 2015, the Gold bugs discovered religion and started to pray for a turnaround.  When you find religion in an area that does not merit it, the result is always calamitous.  The Gold camp was in turmoil, and chaos became the order of the day; how could Gold drop when the Fed was creating money at an insane pace?  Unable to explain these strange phenomena, they opted for the illusory; magical incantations, looking at tea leaves, skull bones, etc., etc.  Based on this strange behaviour, it was obvious that Gold would continue to trend lower; an assessment with which Jim Rogers seemed to concur.

There are still too many mystics in the gold market who think gold is holy so cannot decline. When/if they give up and throw their gold out the window because ‘she lied to me,’ gold will make a firm bottom,” Rogers said.

 To add pain to misery, Gold traded below $1100 briefly, and religion was abandoned, in favour of fear and desperation.   Hopelessness is setting in, for the Gold bugs cannot fathom how against the backdrop of trillions of new dollars being added to the money supply, Gold continues to take a beating.  Embracing the mass mindset is a dangerous affliction, for reason and logic are abandoned in favour of misery and panic. It brings to mind a certain phrase we used recently “welcome to my world said the spider to the fly…… to which the fly responded which one.” What the Gold bugs have failed to understand and come to grip with is that we have two worlds coexisting together, the illusory and the real.  The crowd (Horde) has embraced the imaginary, so the illusory supersedes reality.   The masses believe money is created from trees as opposed to sweat and labour.  This means that the Fed can continue debasing the currency, and the masses will be none the wiser.  They do not want to or refuse to grasp the concept of “Fiat Money” and trying to educate them is an endeavour in futility.  They idiotically and fallaciously assume that the valueless pieces of paper-backed up nothing are just as valuable as Gold.  History is replete with examples clearly illustrating how the masses are forlornly optimally positioned to be used as cannon fodder. The mass mindset refuses to study and learn from the past; secure in their knowledge that the past offers nothing of value, they are doomed to embrace a future which is nothing, but a replay of the past they so candidly repudiate.  While the masses embrace the paradigm of ignorance and bliss, you have the option to differ.

Gold is not going to drop to zero, not in the face of the largest currency war the world has ever witnessed.  Years ago we labelled this war, as the “race to the bottom”.  We stated early as 2003 that nations would be forced to take this path, as they sought to maintain a competitive edge.  Now, the war has taken on an urgency not seen before, as a nation after nation joins the battle.  China decided to embrace this war with open arms finally and stunned the markets by devaluing their currency twice in two days.

The two devaluations come after a run of weak economic data and have raised suspicions that China is embarking on a longer-term slide in the exchange rate. A cheaper yuan will help Chinese exports by making them less expensive on overseas markets. Full Story

More nations are coming to the “devalue or die party”.  Vietnam joined the bandwagon and devalued its currency twice to maintain its competitiveness. Indonesia has been allowing its rupiah to collapse since Jan of 2013.

The psychological outlook:

Gold issued several psychological signals that a top was close at hand in 2011 and that a top was in place in 2012.  The first message came in 2011 when Gold put in a series of new highs; instead of exhibiting signs of caution, the sentiment in the Gold camp was filled with Joy and elation. The 2ndsignal came in 2012 when Gold failed to put in a new high and pulled back strongly after trading past the $1800 ranges; the gold bugs exhibited no signs of distress.

The technical outlook

From a technical perspective; several technical indicators did not confirm the surge to new highs, and the negative divergences these indicators generated were rather large. When we combined this with the psychological developments mentioned above, it was time to take money off the table.  Many sophisticated investors took this route, or like Jim Rogers they opted to hedge themselves against the subsequent decline.

Gold correction

If we zoom in and just examine the period from 2011-2013, one can clearly see the topping formation in progress.  Over a period of one year, Gold continued to put in a series of lower highs. The first zone of support (1820-1850 ranges) was breached around Sept of 2011, and each attempt to trade past it after that failed.  Gold then went on to trade below the second zone of support (1750) and continued to put in lower lows.  In August of 2012 when it looked like Gold might have bottomed, and was ready to mount a strong rally, it didn’t even trade past 1850; the first zone of former support turned into resistance.   After, failing to trade above 1850, it rapidly traded below the second former zone of support, which now had become another zone of strong resistance.  Investors had ample time to bail out from 2011-2012.  We are not talking about getting out at the exact top. Trying to time the exact top is a process best reserved for imbeciles with plenty of time on their hands and a large capacity for pain. Any exit from 1750-1900 would have made for a great exit point.

Going back to the first chart, we see that Gold has violated its long-term uptrend line, and this automatically indicates that the bottoming phase is going to be just as frustrating as the topping phase. In other words, many early bulls will be crushed as every bottom they predicted, continues to be violated.  A bottom will take hold, but it will not be a smooth process.

We could list an overabundance of fundamental data about why Gold should fly. Every Gold analyst and every Gold connoisseur over the past five years has done this continually, and all to no avail.  If you are eager to process this regurgitated information, a simple Google search should yield a plethora of results.  The sentiment readings right now are conducive to market bottoming action; however, the technical outlook indicates that there could be more downside. This downward move will serve to reinforce the imprudent perception that the Gold bull is deceased.  Every bull market undergoes a back-breaking correction, and Gold is no exception.

Levels of support:

We are going to revert back to the chart of GLD.  If Gold is unable to rally and stay above $1180 on a weekly basis, then the next level of support that comes into play is around 100, which correlates to a level of roughly $1000 for Gold bullion. A weekly close below this level should take the price of Gold down to the $960 ranges completing a back-breaking pullback of 50%.  In this age of extremely volatility, there is always a chance that Gold could overshoot this mark.  On the other hand, it could hold steadfast above $1000.  The point is not to fixate on absolute prices; if it’s a good deal jump in and buy, instead of trying to save a penny and losing a pound. The shrewd investor will use this phase to open up new positions, instead of complaining.   The Idiotic investor complains/whines that they would have done things differently given the opportunity. …  Off course the truth being that given the chance they will react in the exact same manner. It’s a real life example of the movie ground hogs day.

This is the advice we offered our subscribers recently.

The drug pushers in the media are giving the news junkies their daily fix; they are catering to the twaddle scenario that the world will end. Step back and reflect on how lucky you are that individuals of such calibre exist; ones that seem to feed and thrive on this rubbish. Every time you run into an idiot be grateful for it’s those idiots who make your life infinitely easier. Most do not see this part of the equation or story; they focus on the false premise that idiots make their lives harder, when, in fact, the opposite is true.  Market Update July 17, 2015

Our trading methodology focuses extensively on mass psychology and technical analysis.  From the mass psychology perspective, Gold is very close to putting in a bottom.  Sentiment investors, contrarian investors and investors who are familiar with the concept of mass psychology should consider taking a closer look at the precious metal’s sector now.  From the Technical analysis perspective, the potential for more downsides is still there.

We have been advising our subscribers to deploy small amounts of money into Gold because we sold close to the top, and so we are using profits to get back in.  If you sold Gold in the 1700-1900 ranges, then it might be prudent to start nibbling at this sector now.  On the other hand, if you were dreaming of better prices when Gold was trading north of 1800, you don’t have to dream anymore.  Incidentally, we did warn our subscribers to close the bulk of their positions in Gold, Silver and their entire Palladium bullion positions in 2011. Just for the record, selling close to the top was not something we were attempting, and attribute that more to lady luck than anything else.

Conclusion

The markets are extremely leveraged today and this leverage does not refer to money only, but emotions such as stupidity, fear, greed, etc.   There is a lot more in terms of useless emotions involved in today’s trading than in yesteryear.   The fixation should not be on trying to spot the exact bottom; looking for the exact bottom is like trying to find a needle in a mound of cow dung; a malicious and stinky process where the odds of success are rather low. If you adored Gold at $1800 or $1600 or even $1200, then you should simply be mad about it now that it is trading well below $1200.  Do not impersonate the horde (mass mindset), whose sole role is to sell when it’s time to buy, and buy when it’s time sell. These people always make the following statement “I wish I bought when the markets were falling apart,” but when that situation finally presents itself, these very same people are the first to head for the exit.

There are some analysts offering haughty targets of $10,000, $15,000 and some are even over $20,000.  While we are at, why not suggest $100,000.  We are sure some analyst will come out and issue such an inane target, as was the case with the lofty target of Dow 30,000 being issued years ago.  This begs the following question. How many generations would have to pass before Gold ever hits those targets? Those guys waiting for the haughty predictions issued on Gold in the 1980’s are still waiting for those high-end targets to be hit.   Why the focus on such high-ceilinged targets when Gold has not even touched the $2000 level.

The targets we issued years ago still stand.   Our first target of 1500-1800 has been hit.  The next stage is for Gold to trade to $2000; once $2,000 is taken the next phase of the true bull will begin. Our high target is in the $5000-$5500 ranges, with a possible overshoot to $6,000.   The focus now should be making sure you are in the market and not jabbering about how high Gold will trade. As the saying goes “you need to be in it to win it” The trend is your friend; everything else is your foe.

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Perception Wars: You see what you are directed to see

Perception Wars; You see what you are directed to see

Brainwashing is the name of the game

 Everything you process is based on Perception & perception is based on the data you are feed 

Alter the perception, and you alter the outcome.  How do you even know how you even see the right picture? If all the information that you are being provided with is manipulated, that means the image you are creating with this data is also illusory in nature. This is the tool that Wall Street employs with impunity; they use it all the time to create boom and bust cycles.  One of the Grandmasters of data manipulation and Brainwashing is our lovely Federal Reserve system and not too far behind is the Bureau of Labor Statistics.

Perceptions are created via  brainwashing programs that are psychological in nature

Psychological brainwashing starts the moment your child enters the public education system. Once they leave this system its game over for over 90% of the individuals. 10% escaping is acceptable as this 10% cannot bring about any effective change as they do not control the levers of power. In most cases, they never attain very high ranking positions so they exist on the fringe where they might garner some new followers but never enough to bring on any meaningful change. All forms of media have one thing in common if they cater to the masses (school is nothing but one massive brainwashing factory); their goal is to redirect your perceptions so that you see what they want you to see. This is why the media constantly bombards you with the same story over and over again. Repetition is the best way to implant something into unsuspecting minds.

These thoughts are embedded into the psyche and the individual then assumes that their his thoughts, when in fact, they are not.  This is why there is an active effort to get rid of homeschooling; homeschooling promotes free ideas; government schooling kills all forms of free thought. In Germany homeschooling is a crime; imagine that how stupid do people have to be to accept a state that bans parents from schooling their kids.

The perception is changing; the masses are now becoming optimistic thus unless the trend changes we can expect the markets to rally even higher. One other thing to understand is that even though the rally in the markets has been artificially induced, the markets have actually recently issued “a true bullish signal.”.  What is this signal you ask? Well, both the Dow and SPX are trading at new highs. A true bull market is not in session until the old highs have been taken out.  9 out of 10 times when this occurs the market rallies significantly from the breakout point; the breakout point, in this case, is roughly 14200 (the old 2008 high).  Market Update Dec 12, 2013 

The Truth or a lie is not based on reality but based on what you perceive to be reality and that reality is manipulated via brainwashing programs 

Perception is everything and not looks or money. If you can alter the perception, then you can recreate any reality or alternate reality you want. It appears that the breakout to new highs was indeed a bullish signal. This was not an easy call to make given that the markets had risen so much over such a short period.  Now that the Fed has seen how easy it is to recreate reality watch how the level of brainwashing will increase exponentially. People that use common sense will start to feel like aliens in this world, for the majority of the populace will be operating in an alternate reality. You won’t have to watch the TV series the living dead; you will start to run into them everywhere soon. The first place you will notice this is with family and people, who you thought were your friends, etc., etc. Welcome to my World said the spider to the fly, to which the fly responded, which one.

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Stock Market Crash Predictions Are Blatant Acts Of Misdirection

Stock Market Crash Predictions Are Blatant Acts Of Misdirection

Stock Market Crash Predictions: Ignore them & focus on the Trend

Most Financial writers have chosen the wrong field; they would be much better served to work for one of those cheap tabloids   Their focus is on bombastic titles, and their advice is on par with rubbish.  Their main objective is to hardwire the masses to panic the moment the markets exhibit signs of volatility.  They constantly conjure scenes of devastating losses and the course of action best suited for the masses. If these chaps bothered to examine in history, they would immediately note that they’re on the wrong end of it. Furthermore, if they believed even 1/10th of the garbage they were broadcasting and acted on it, they would have been blown out of the game a long time ago.   Logic indicates that they are all talk and no action; their focus is on attention-grabbing titles, but when it comes to action, they offer very little in terms of actionable advice.

Experts purposely go out of their way to proclaim the next crash will mark the end of everything.

History would strongly disagree with them as we stated before and would give them a grade of F for their blatant ignorance. It is said that those who do not learn from history are doomed to repeat it. That sums up financial experts for you; terrible students with very big mouths.

An empty can makes a lot of noise, and that’s exactly what most experts are famous for when they scream stock market crash from the top of their longs. Stock market crashes are perfect examples of misdirection; the crowd is directed to fixate on the fear factor and not the opportunity factor.

Why is that these experts almost always speak of a crash when the market is close to putting in a bottom and or vice versa.  The masses like dumb cattle latch on to this blabber and sell close to the bottom and almost always buy close to the top.   The smart money, on the other hand, does the opposite.

The Chart below indicates that Stock market crashes represent Buying Opportunities

DOW chart

 

Here is a stock Market Crash prediction

We guarantee that the market will crash one day, but we also guarantee that those that wait for that crash will lose more money than they could ever hope to make from by waiting for that crash. Market crashes start of silently, and most of the bears miss them just as they miss out on bull runs. Markets spend 3X times going through bullish phases, so why waste time on focusing only on one aspect of the equation. Focus on both side of the Coin, and profit from bull runs and corrections.  The astute investor has no emotional stake in a given outcome; the focus should be the trend, as everything else is just hot air, usually with a foul odour.

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Global warming Game; The Hidden Agenda

Global warming Game; The Hidden Agenda

If one utilises the principles of mass psychology in the same manner as one uses them in the financial markets to analyse the issue of global warming; well, something starts to stink?  If there is too much noise being made about the issue and the masses are buying the nonsense and that is an immediate red flag.

What we have learned from the investing arena can be applied to any other field, and we have long since learned that if someone is trying to force something down your throat that there is usually a hidden agenda, especially if corporations and governments are backing the so-called proposition.  The governments do nothing for the good for their people; the only thing they are concerned with is lining their pockets with as much money as they can.

Is global warming real? Well if it was real why would so many scientists sign a petition calling this theory Rubbish

Close to 32,000 scientists signed this petition stating that the Global warming story line is total rubbish.  If scientists don’t believe in this hypothesis, and they have the credentials to understand the theory behind these claims, then logic dictates that a rational individual should take the same route.  The main players here are corporations and politicians.  Politicians are nothing but paid corporate prostitutes, therefore, the only time you can trust these two groups is when their lips are not moving.  This Videos below reveals the depth of this scam and the length the top shadowy players will go to in order to get what they want; ultimately they are only concerned with money and power.

What the media refuses to tell you about Global warming

Is global warming real: Apparently not, as Green Peace Co-founder doesn’t beleive in it 

 The Is global warming real Strategy you can put to use to take advantage of this ploy

As a result of this push to prevent global warming, many sectors have taken it to the chin; the sector that has taken the most brutal punishment is the coal sector. Coal consumption is not going to drop, Asia will continue to embrace coal as its cheap and new coal plants are almost as efficient as nuclear plants. Hence, contrarian players might consider opening positions in some of the stocks below.

Coal stocks to buy

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Top US Scientist Resigns – States Global Warming A Big Hoax

Global Warming A Big Scam

Climate change hoax confirmed by Scientists not afraid to speak out

We have published many articles on this subject where members from the scientific community have all stated that Global Warming is nothing but a big scam. The climate change hoaxes sole purpose is to defraud the public.  The carbon tax scheme is also part of this elaborate scam.  It seems that big corporations want to control everything from the air we breathe to what we think; they want to recreate reality and will use whatever fraudulent method they have to employ to achieve this goal.  The same dirty trick is used to trick the masses into buying stocks and stocks at the wrong time. They purposely foster an environment that is conducive to boom and bust cycles; these sharks make a killing in both phases of these cycles.  Let’s take a look at what this esteemed professor had to say on the topic of Global Warming

“It is of course, the global warming scam, with the (literally) trillions of dollars driving it, that has corrupted so many scientists, and has carried APS before it like a rogue wave. It is the greatest and most successful pseudoscientific fraud I have seen in my long life as a physicist.” 

“Some have held that the physicists of today are not as smart as they used to be, but I don’t think that is an issue. I think it is the money, exactly what Eisenhower warned about a half-century ago. There are indeed trillions of dollars involved, to say nothing of the fame and glory (and frequent trips to exotic islands) that go with being a member of the club.”

Climate change hoax pushes Top US Scientist to resign 

Sent: Friday, 08 October 2010 17:19 Hal Lewis
From: Hal Lewis, University of California, Santa Barbara
To: Curtis G. Callan, Jr., Princeton University, President of the American Physical Society
6 October 2010

When I first joined the American Physical Society sixty-seven years ago it was much smaller, much gentler, and as yet uncorrupted by the money flood (a threat against which Dwight Eisenhower warned a half-century ago).

Indeed, the choice of physics as a profession was then a guarantor of a life of poverty and abstinence – it was World War II that changed all that. The prospect of worldly gain drove few physicists. As recently as thirty-five years ago, when I chaired the first APS study of a contentious social/scientific issue, The Reactor Safety Study, though there were zealots aplenty on the outside there was no hint of inordinate pressure on us as physicists. We were, therefore, able to produce what I believe was and is an honest appraisal of the situation at that time.

Global Warming is a Hoax

We were further enabled by the presence of an oversight committee consisting of Pief Panofsky, Vicki Weisskopf, and Hans Bethe; all towering physicists beyond reproach. I was proud of what we did in a charged atmosphere. In the end, the oversight committee, in its report to the APS President, noted the complete independence in which we did the job, and predicted that the report would be attacked from both sides. What greater tribute could there be?

How different it is now. The giants no longer walk the earth, and the money flood has become the raison d’être of much physics research, the vital sustenance of much more, and it provides the support for untold numbers of professional jobs. For reasons that will soon become clear my former pride at being an APS Fellow all these years has been turned into shame, and I am forced, with no pleasure at all, to offer you my resignation from the Society.

It is of course, the global warming scam, with the (literally) trillions of dollars driving it, that has corrupted so many scientists, and has carried APS before it like a rogue wave. It is the greatest and most successful pseudoscientific fraud I have seen in my long life as a physicist. Anyone who has the faintest doubt that this is so should force himself to read the ClimateGate documents, which lay it bare. (Montford’s book organizes the facts very well.) I don’t believe that any real physicist, nay scientist, can read that stuff without revulsion. I would almost make that revulsion a definition of the word scientist.

So what has the APS, as an organization, done in the face of this challenge? It has accepted the corruption as the norm and gone along with it…

I do feel the need to add one note, and this is conjecture since it is always risky to discuss other people’s motives. This scheming at APS HQ is so bizarre that there cannot be a simple explanation for it. Some have held that the physicists of today are not as smart as they used to be, but I don’t think that is an issue. I think it is the money, exactly what Eisenhower warned about a half-century ago. There are indeed trillions of dollars involved, to say nothing of the fame and glory (and frequent trips to exotic islands) that go with being a member of the club.

 How the Climate change hoax Began?

Now we have a second video by another expert that shatters the Climate change hoax Myth at its roots.  Why are governments trying so hard to scare the masses? The answer is simple; it comes down to money and control.  They want to fleece you and they want to control your perceptions.

 

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