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 Featured Video
Investment Trends in 2010
2009 was a momentous year for investing.
Charles Biderman, founder and CEO of TrimTabs Investment Research,
appears on CNBC's the Closing Bell with CNBC's Michelle Caruso Cabrera
and Komal Sri Kumart of TCW to discuss the outlook for 2010.
Video posted by TrimTabs Investment Research
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Dear Members,
After a well-deserved break, the markets are back and in
full swing action. Our recently featured gold company, Trueclaim Exploration (TSX-V: TRM) just announced visible
gold mineralization and resource stocks are continuing to fly.
We couldn't be
more excited
With the uncertainties of 2009 behind us, the start of 2010
has been nothing short of amazing. Just last month, we had analysts on opposite
sides of the table arguing and debating the sustainability of the economic
turnaround. But with the New Year in full effect, the analysts and economic
forecasters have changed their tune and are now singing the same song. The
majority of them now believe that our markets will not only sustain this growth,
but continue to climb slowly throughout the year.
Here at Equedia, we certainly believe ourselves to be
optimists and love hearing the positive outlook given by these analysts and forecasters.
But not for the reasons you may believe
You see, we have continually tracked the numbers and the
predictions of these economic analysts and forecasters. Whenever they make a prediction,
we listen very closely. But that's where it gets interesting. If they predict
one thing, we place bets in the opposite direction. Let's give you a
few examples of why we do this.
Remember when oil was gaining strength in 2008? Analysts, including Goldman Sachs,
were calling for oil to hit $200/bbl. That's when we went short. Shortly
after the highs of near $150/bbl, oil began its plunge.
Then analysts once again changed their views and called for $25 oil:
"With demand
vanishing across all key oil consuming regions, benchmark crude oil prices
continue to plummet," Merrill said in a research note. "A temporary
drop below $25 a barrel is possible if the global recession extends to
China."
The global recession did extend to China. That's when we
went long. Since then, oil has never looked back and now trades at over
$80/bbl.
What about when they told everyone to horde and hang on to
their cash in March of 2009 when the market crashed to its lowest point in
years? That was our signal to empty our pockets and invest in mining and
resource stocks (see Playing Ball with Resources by clicking here.)
Since then, the TSX Venture (an exchange weighted heavily in
mining and resource) has gained more than any other exchange (see Where the Billionaires Invest by clicking here.)
So now that analysts are calling for a continuance of growth
and a strong performing 2010, we are making bets in preparation of the
opposite. Now we are not saying that 2010 could not be a great year for the
markets, but we have to remain ahead of the herd by making bets that can help
protect us from what is ultimately going to happen.
Inflation
One of the biggest problem our economy now faces is the
uncertainty of how strong inflation will hit and how soon. The governments
(both in the US and Canada) will undoubtedly have to raise interest rates which
cannot remain at these levels.
Now the fear arises when you combine
the amount of money that is being printed (see The Impressive News Release by clicking here) with how low current
interest rates are.
As many of you already know and have experienced not too
long ago, raising interest rates is the prime combatant of inflationary
pressures. In the United States, interest rates
are decided by the Federal
Reserve (see What the Fed Doesn't Want You to Know by clicking here.)
As explained by Investopedia,
interest rates directly affect the credit market (loans) because higher
interest rates make borrowing more costly. By changing interest rates, the Fed
tries to achieve maximum employment, stable prices and a good level growth. As
interest rates drop, consumer spending increases, and this in turn stimulates
economic growth.
Contrary to popular belief, excessive economic
growth can in fact be very detrimental. At one extreme, an economy that is
growing too fast can experience hyperinflation,
resulting in major problems.
Keep in mind that while inflation is a major
issue, it is not the only factor informing the Fed's decisions on interest
rates. For example, the Fed might ease interest rates during a financial crisis to provide liquidity
(flexibility to get out of investments) to U.S. financial markets, thus
preventing a market meltdown. This has been the clear goal of the our recent
economic crisis.
The amount of borrowing already achieved is still not yet enough to get our
economies back to where they were just a few years ago. Combine that with the
growth our economies need to achieve to replace all the lost jobs, plus the
amount of borrowing that's being done at current interest rates, and we end up with a
serious problem.
How does that relate to
your portfolio?
The impact of inflation on your portfolio depends
on the type of securities you hold. If you invest only in stocks, worrying
about inflation shouldn't keep you up at night. Over the long run, a company's
revenue and earnings should increase at the same pace as inflation.
The exception to this is
stagflation.
The combination of a bad
economy with an increase in costs is bad for stocks (which is what is happening
as we speak.) Also, a company is in the
same situation as a normal consumer - the more cash it carries, the more
its purchasing power decreases with increases in inflation.
The main problem with stocks
and inflation is that a company's returns tend to be overstated. In times of
high inflation, a company may look like it's prospering, when really inflation
is the reason behind the growth. When analyzing financial statements, it's
also important to remember that inflation can wreak havoc on earnings depending
on what technique the company is using to value inventory.
Fixed-income investors are the hardest hit by
inflation. Suppose that a year ago you invested $1,000 in a Treasury bill
with a 10% yield. Now that you are about to collect the $1,100 owed
to you, is your $100 (10%) return real? Of course not! Assuming inflation was
positive for the year, your purchasing power has fallen and, therefore, so
has your real return. We have to take into account the chunk inflation has
taken out of your return. If inflation was 4%, then your return is really 6%.
This example highlights the difference between nominal
interest rates and real interest
rates. The nominal interest rate is the growth
rate of your money, while the real interest rate is the growth of your purchasing
power. In other words, the real rate of interest is the nominal rate reduced by
the rate of inflation. In our example, the nominal rate is 10% and the real
rate is 6% (10% - 4% = 6%).
As an investor, you must look at your real rate
of return.
Unfortunately, investors often look only at the nominal return and
forget about their purchasing power altogether. (credit Investopedia)
The best way to combat this
scenario is to invest in inflation-hedging bets while maintaining your
diversity in stocks. This means putting your money in hard assets like real
estate or precious metals such as silver and gold while adding stock positions tied
to the mining and resource sectors.
As mentioned in the above scenario, If you
invest only in stocks, worrying about inflation shouldn't keep you up at night
as a company's revenue and earnings should increase at the same pace as inflation.
But if you factor in mining and
resource based investments into the equation, there is an opportunity to not
only beat inflation, but also protect yourself against stagflation.
That is why to this day we can
continue to remain bullish in the resource sector. Every day the resource and
miners are continuing their climb and this is clearly evident in the market
performance of the Canadian miners. Positive news announcements from precious
metals juniors have helped many of them achieve new 52-week highs.
This lead us
to our next story and update on one of our featured gold companies, Trueclaim Exploration (TSX-V: TRM).
Trueclaim (TSX-V: TRM) has climbed strongly from a low of $0.12 in mid December to the closing price this Friday of $0.24. That's a 100% percent increase in share price in less than one month.
Based on our emails and the chatter on the boards, many shareholders believe the recent run in share price may be attributed to the anticipation of the preliminary results from their Phase I drill program.
The wait is over.
After the market close this Friday, Trueclaim (TSX-V: TRM) announced their preliminary results from their Phase I drill program at their Scadding Gold property.
In three of the first four holes evaluated to date by the geologic
team, visible gold mineralization was identified with highlights including the intersection of 47.59 grams per tonne of gold over one metre in hole TRM-09-13.
In outlining the results, John Carter, the President of Trueclaim (TSX-V: TRM),
began by noting, "The Phase I program was designed to accomplish three
main goals: to confirm the presence of historical non-compliant NI
43-101 gold occurrences as reported in previous reports of drill
programs undertaken by others; outline the mineralized zones suggested
in previous non-compliant NI 43-101 reports; and develop a better
understanding of this mineralization. In multiple areas the results
exceeded our expectations."
What stands out in the news release is not just the confirmation of visible gold mineralization, but the confirmation that the results to date suggests that the mineralization may have continuity between all five zones drilled.
More results from their Phase I drill program are expected soon which will help lead Trueclaim (TSX-V: TRM) into their Phase II program to determine their open-at-depth potential and confirm the zone to zone continuity of mineralization.
A new full report on Trueclaim (TSX-V: TRM) will be released in the near future.
We`re looking forward to 2010.
Until next week,
Questions?
Call Us Toll Free: 1-888-EQUEDIA (378-3342)
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Zacks Investment: Early Views on the 2010 Market
 What will be the key drivers of the market in 2010? Our panel of
experts discuss the options including oil, interest rates and more.
Click the video to play.
More Zacks videos:
> Sizing Up the Markets - Stock Screening Strategy
> New Highs - Stock Screening Strategy and Picks
> Aggressive Growth Stock Picks - January 5, 2010
> Value Stock Picks - January 4, 2010
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"Get Your Gold the Hell Outta Here!"
 By Doug Hornig, Casey's Gold & Resource Report
That's the directive that came down from HSBC USA in late November.
It seems that everyone these days wants gold. Real, physical gold coins
that they can hold in their hands, or bars that they're assured are
resting safely in a well-guarded vault. HSBC's New York vault, for
example, buried deep below its 5th Avenue tower, where it has stored
people's gold since it inherited the facility from Republic Bank a
decade ago.
But no more.
HSBC has served notice to
its retail customers - many of whom are simply middle-men and custodial
services which store gold with HSBC on behalf of hundreds of their own
account holders - that all their gold must be out of its facility by
July 2010. Otherwise, folks, prepare for an unwelcome knock at your
door. HSBC's letter says that, in the absence of directions to the
contrary, clients' metal "will be returned to the address of record...
at your expense."
Picture, if you will, what the Wall Street Journal reported: "fleets of armoured cars laden with gold ferrying the precious metal out of New York."
Where to? That's a good question...
Click Here to Continue Reading
More Casey Research Articles
> The Eye of the Storm
> What Does Global Warming Have to Do with Energy Stocks?
> What Likely Lurks Around the Corner
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Technical Trading with Harry Boxer
 Harry Boxer has more than 40 years of Wall Street investment and
technical analysis experience, including eight years on Wall Street as
chief technical analyst with three brokerage firms.
Watch the video as he walks you through his technical analysis on Brigham Exploration, China TransInfo Technology, Geron Corporation, US Energy Corp, and a whole bunch of other stocks. To see more videos, Click Here. Like his analysis?
Click Here to receive a Free
15-Day Trial to Harry Boxer's Real-Time Technical Trading Diary for Equedia
members.
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Equedia's Newest Feature - Embed Videos
Is there a video on Youtube or another website that you want to post without uploading it through our technology?
With our new Embed feature enabled, you can now upload and embed any object or video into your blog post. Many of our users are already embedding videos from Fox, Youtube, and CNBC and sharing them with our users.
Embedding is simple. Just copy and paste the embed codes from another website ino the main blog section of your post (not the exceprt).
Where do you find these embed codes?
Embed codes for videos are usually right beside a video.
Here is an example of where the code is on Youtube, highlighted in yellow:
So share what you find with everyone! To learn more, feel free to email or call us at 1-888-EQUEDIA
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Equedia Tips - The Markets Tab
Using the search function at the top right corner of the website, search for any company. Let's use Research in Motion as an example. Once you reach their profile page, click on the MARKETS TAB. You should now see 12 seperate tabs underneath their logo. Try clicking on them and you will find in-depth information such as:
Detailed Quotes - Depth/Level II - Options - Java Charts - News - Profile - Financials - Insiders trades - Filings - Analyst Consensus - Earnings - Historical Data (Highs/Lows, Volumes, Closing/Opening Prices) |
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Build You Network and Invite Your Email Contacts
You can invite your friends to automatically join your network using your email contacts from:
Hotmail, Live, Yahoo! Mail, AOL mail, Gmail, msn, and many more!
or
You can manually add your friends' email addresses by typing them in (or copy and pasting from any text documents)
Just log in with your username and password and click here:
So whether you are a media user or investor, invite your friends now and build your network of investment traders and professionals. Here are some obvious benefits to having a large network:
- Improved credibility to your work and news feeds - the more friends and people you have in your investment network, the more likely you will attract new friends and followers
- Media users with a large network will gain more exposure for their services and attract more potential investors or corporations to their services
- Access more knowledge and information through your feeds
- See your friend's buy, sell, and hold ratings and the companies they have an interest in
Of course, there are many more benefits to inviting your friends but should you give it a try yourself.
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Additional Features (you may not know)
Equedia has many features (you may have overlooked) that will help you manage your investment life and ensure a more enjoyable and useful experience.
Here are just a few of them:
Calendar subscriptions: Keep track of your business events, subscribe to other events, and have access to your online calendar from anywhere in the world. In the near future, we will be working with public companies to add their events to the calendar so that shareholders will never miss an important event again. So call your companies and get them to participate!
Tagging companies to videos and images: Did you know that all of your videos and images can be tagged to public companies? Do you have a video about Google? How about a blog with an image? How about just a blog? Tag it to Google in your blog post, so that anyone searching for Google's quotes and finances can find your coverage!
Buy, Sell, and Hold Ratings: Once you log in, you can submit your buy, sell and hold ratings on the ratings tab so that other shareholders can see what YOU think. You may also access your associates' ratings and see what they think of the shares you hold.
Blog feed subscriptions: Once you add someone as an associate, you will have access to all of their blog posts through your blog feeds. Simply go to your "blog feeds" tab once you log in!
Search function: By far one of the most overlooked but important functions on Equedia. Using the top right hand corner search function, you can find and add any corporations, media users, or investors to your network.
Markets Tab: Under any corporate profile, you will find this tab. Under this tab, you can find the company's news, level 2 depth (delayed), options, charts, profile, financials, insider trades, filings, analyst overviews, earnings, and historical data (these may not be available for all companies)
There are many more useful features on Equedia.com but we think its better if you experience them for yourself. The more associates you have, the more useful Equedia will become for you. So use the new "invite my contacts" function and get started!
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Forward-Looking Statements
This Newsletter and report contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the companies in this report do not intend to update any forward-looking statements to conform these statements to actual results.
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Companies Under Evaluation
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Disclaimer and Disclosure
Regarding Historical Data: All resource estimates presented in this
report are historical and were prepared before the introduction of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101").
These resource estimates may not be
relied upon until they are confirmed using methods and standards that
comply with those required by NI 43-101. The potential for the
exploration target to replicate the historical resource, or to reach
the indicated range of tonnages, is conceptual and is based on
historical reports, which cite approximately lengths, widths, depths,
grades and projections of the historical resource. Readers are
cautioned that a qualified person has not completed sufficient
exploration, test work or examination of past work to define a resource
that is currently compliant with NI 43-101. The Company further
cautions that there is a risk that exploration and test work will not
result in the delineation of such a currently compliant resource.
Neither the Company nor its personnel treat the historical resource
estimate or the historical data as defining a current mineral resource,
as defined under NI 43-101, nor do they rely upon the estimate or the
data for evaluation purposes; however, these data are considered
relevant and will be used to guide exploration as the Company develops
new data to support a current mineral/resource estimate in accordance
with the requirements of NI 43-101.
For more information on
Trueclaim Exploration, investors should review the Company's registered
filings that are available at www,sedar.com.
Equedia.com &
Equedia Network Corporation bears no liability for losses and/or
damages arising from the use of this newsletter or any third party
content provided herein. Equedia.com is an online financial newsletter
owned by Equedia Network Corporation We are focused on researching
small-cap and large-cap public companies. Our past performance does not
guarantee future results. Information in this report has been obtained
from sources considered to be reliable, but we do not guarantee that it
is accurate or complete. This material is not an offer to sell or a
solicitation of an offer to buy any securities or commodities.
Equedia.com
has been compensated to perform research on specific companies and
therefore information should not be construed as unbiased. Each
contract varies in duration, services performed and compensation
received. Equedia.com is not responsible for any claims made by any of
the mentioned companies or third party content providers. You should
independently investigate and fully understand all risks before
investing. We are not a registered broker-dealer or financial advisor.
Before investing in any securities, you should consult with your
financial advisor and a registered broker-dealer. The information and
data in this report were obtained from sources considered reliable.
Their accuracy or completeness is not guaranteed and the giving of the
same is not to be deemed as an offer or solicitation on our part with
respect to the sale or purchase of any securities or commodities. Any
decision to purchase or sell as a result of the opinions expressed in
this report OR ON Equedia.com will be the full responsibility of the
person authorizing such transaction.
Please view our privacy
policy and disclaimer to view our full disclosure at
http://equedia.com/cms.php/termsr. Our views and opinions regarding the
companies within Equedia.com are our own views and are based on
information that we have received, which we assumed to be reliable. We
do not guarantee that any of the companies will perform as we expect,
and any comparisons we have made to other companies may not be valid or
come into effect. Equedia.com is paid editorial fees for its writing
and the dissemination of material and the companies featured do not
have to meet any specific financial criteria. Equedia Network
Corporation., owner of Equedia.com has been paid $7,500 Canadian
dollars plus gst for 3 months of advertisement coverage on Trueclaim
Exploration Inc. We have been paid by the company. We have also been
compensated 30,000 shares of Trueclaim Exploration by a third party for
other marketing services. These services includes but is not limited to
the creation and distribution of reports such as this one written by
Equedia.com. Equedia.com and its affiliates own shares in Trueclaim
Exploration at the time this report was released and we may purchase
more shares in the company and sell them for our own profit, without
notice to our subscribers. The companies represented by Equedia.com are
typically development-stage companies that pose a much higher risk to
investors. When investing in speculative stocks of this nature, it is
possible to lose your entire investment over time. Statements included
in this newsletter may contain forward looking statements, including
the Company's intentions, forecasts, plans or other matters that
haven't yet occurred. Such statements involve a number of risks and
uncertainties. Further information on potential factors that may
affect, delay or prevent such forward looking statements from coming to
fruition can be found in their specific Financial reports. Equedia
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or made available by third parties, including information providers,
Subscribers or any other user of the Equedia Network Corporation
Network of Sites, are those of the respective author(s) or
distributor(s) and not of Equedia Network Corporation. Neither Equedia
Network Corporation nor any third-party provider of information
guarantees the accuracy, completeness, or usefulness of any content,
nor its merchantability or fitness for any particular purpose.
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