The Equedia Weekly Letter
 
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January 22, 2012
Dear Readers,

The markets have been doing well. The S&P 500 has now soared beyond the July highs of last year. As I said before, I wouldn't be surprised to see the market shock us with gains in the short term (see The Last One Standing.)   

 

But don't be so quick to think that everything is back to normal. Things won't return back to normalcy for a long time. There is going to be some major economic restructuring around the world before we can expect a normal market.

 

For the past few weeks and beyond, I have talked about Europe and the US flooding the world with new money. Just last week, the International Monetary Fund called for a another $600 billion to limit the fallout from Europe's debt crisis. It had already requested $500 billion two years ago.

 

Europe has already pledged to inject $200 billion but that still leaves another $300-400 billion to meet the IMF's call. The US has already said it has no intention of adding more funds, considering its own problems at home. But as Europe's debt crisis is widely seen as the biggest threat to the global economy, don't be surprised if the US finds a way to create a few hundred billion to add to the cause.  

 

While the markets have cheered the reports of the IMF's request of funds, the IMF still needs to acquire those funds in order to keep the markets happy. The market is a finicky child that can be made happy with the thought and excitement of something happening. But at the end of the day, something has to happen for the markets to keep up. Right now, there's nothing new.

 

In order for the markets and the economy to continue what appears to be an uptrend, it's going to need more money. More money means more debt. And more debt means a growing inability to service it.  

A debt saturated society cannot grow. As debt servicing grows by the day, the economy losses steam unless more cheap money is available and more printed money is released. But this just adds more fuel to the fire.  

 

In the US, you can get 30-year fixed rate mortgages for less than 4% - even with 2.2 million homes already in the foreclosure process and another 13 million homes with negative or near negative equity. There are car dealers offering 0% financing with nothing down for 60 months and furniture stores offering 0% financing for nearly the same with no payments. So while current economic numbers appear strong, they are a result of incredibly cheap capital which cannot be sustained. Banks are willing to take big risks because the Federal Reserve provides the banks with 0% funding, knowing the government will be there to bail them out if it blows up.  

 

The Fundamentals are Simple

 

The fundamentals of the market are very simple. Based on what is required of the world governments to avoid complete chaos, gold and silver will continue its ongoing 11 years of consecutive positive returns. While the day-to-day price discovery of gold and silver will continue to be manipulated in the paper markets, the overall longer term trend is that gold will rise beyond $2000 and silver beyond $40.   

 

I continue to favour gold and silver stocks, but also uranium stocks as I mentioned earlier last year (see Back to Reality). While the uranium sector has shown us little action, this will eventually change. There are screaming bargains out there for many of the uranium stocks and given the increasing demand of uranium, there will be no choice for the stocks but to move up. If you can stomach the market, stay the course and add to your positions.  

 

While it may seem that precious metals and uranium stocks will never move back up, have faith in the psychology of the market. The smartest investors will tell you the best time to buy stocks is when nobody else wants them - especially given the current market climate where the fundamentals of gold, silver, and uranium are so incredibly strong. Investors don't want these stocks right now because of the volatility in the market and the disconnect between the stocks and their commodity counterparts. Yet, here we have a situation where people don't want precious metals and uranium stocks even when the fundamentals behind many of these deals scream buy. These fundamentals are only getting stronger.

 

This is a great buying opportunity. Load up.

 
Disclosure: I am long gold and silver through ETF's and bullion, as well as long both major and junior gold and silver companies.

   

 

Until next week,

 

Ivan Lo

Equedia Weekly  

 

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Casey Research   

When Will Gold Reach a New High?      

 

By Jeff Clark, Casey Research      

  

Some investors are frustrated and a few are worried that gold seems stuck in a rut. This stall in price has happened before, of course, but since 2001 it's always eventually powered to a new high. Unless one thinks the gold bull market is over, it's natural to wonder how long might we have to wait before seeing another new high.

Absent some sort of global shock that sparks another rush into gold (easily possible in today's climate), I think the answer may lie in examining the size and length of past corrections and how long it took gold to reach new highs afterward.

 

It makes sense that big corrections would take longer to reach new highs than small ones, but I wanted to confirm that assumption with the data. I also wanted to determine if there were any patterns in past recoveries that would give us some clues that we can apply to today.

Gold set a record on September 5 at $1,895 an ounce (London PM Fix) and to date has fallen as low as $1,531 (December 29), a decline of 19.2%. In order to determine how long it might take to breach $1,895 again, I measured how long it took new highs to be mounted after big corrections in the past.

 

The following chart details three large corrections since 2001, and calculates how many weeks it took the gold price to a) breach the old high, and b) stay above that level.

 

 

click to enlarge

 

As you can see, it took a significant amount of time for gold to forge new highs after big selloffs. And yes, the bigger the correction, the longer it took.

 

In 2006, after a total fall of 22.6%, it took a year and four months for gold to surpass its old high. After the 2008 meltdown, it was a year and six months later before gold hit a new record.

 

Our recent correction more closely resembles the one in 2003. After a 16.2% drop, gold matched the old high seven months later. It took another two months to stay above it.

So when do we reach a new high in the gold price?

  

Click Here to Continue Reading

 
More Casey Research Articles

 

> Don't Frack Me Up

> The US Government Is Bankrupt 

 

Featured News:

MAG Silver Plans Increased Exploration at Juanicipio and Cinco De Mayo - Click to Read

Top Stocks with Big Potential Catch-Up Moves  

      

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Given the recent run-up in the market, here's a screen Kevin's been using recently for his own stock picking.

 

First, it focuses in on the top Zacks Ranked Sectors and Industries. Then it focuses in on the Zacks #1 Ranks and Zacks #2 Ranks, which are Strong Buys and Buys, respectively. But then it selects the outperforming stocks with the smallest percentage price change over the last 4 weeks.

 

Why would he do something like that?

   

Watch the video as Kevin Matras shows how to find the top stocks in the top sectors with the biggest potential for a catch-up price move.

 

Click Here to Continue Reading or Watch the Video

More Zacks Videos
:

  

> As the S&P downgrade to France appears to be absorbed, where are the earnings risks?  

> Stock Picks for Trucking, Tractors, and Trillions in Derivatives 

> Value Stock Picks with analyst research on Lincoln Electric Holdings (LECO) and Titan International (TWI) Video - January 17, 2012 

Featured BNN Clip:

BNN: Potash Outlook with Ernie Lalonde, Senior Vice President, Mining, DBRS - Click to Read

Technical Trading with Harry Boxer 
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Harry 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 January 19th video as he walks you through his technical analysis on a whole bunch of stocks he thinks you should be watching from last week. To see more videos, Click Here.

 
Featured Video Blog::
Morningstar: Are Housing Stocks Getting Ahead of the Housing Market?
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Equedia Tips - The Markets Tab

Research in Motion
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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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!

Forward-Looking Statements

Except for the statements of historical fact, the information contained herein is of a forward-looking nature. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by statements containing forward-looking information.

 

Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that statements containing forward looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on statements containing forward looking information. Readers should review the risk factors set out in the Company's prospectus and the documents incorporated by reference.

 

Cautionary Note to U.S. Investors Concerning Estimates of Inferred Resources

 

This presentation uses the term "Inferred Resources". U.S. investors are advised that while this term is recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize it. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of "Inferred Resources" may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an "Inferred Mineral Resource" exists, or is economically or legally mineable.


In This Issue
Ivanhoe Mines Negotiates an Additional US$1.8 Billion Bridge Financing
When Will Gold Reach a New High?.
MAG Silver Plans Increased Exploration at Juanicipio and Cinco De Mayo
Top Stocks with Big Potential Catch-Up Moves
BNN Clip: Potash Outlook with Ernie Lalonde
Technical Trading with Harry Boxer
Morningstar: Are Housing Stocks Getting Ahead of the Housing Market?
Upload Your Own Videos
Equedia Tips- Markets Tab
Additional Features
Featured Stock Reports
This Week's Most Wanted
Equedia Watch: Companies Under Evalualtion
Rants and Raves...Inside the mind of Equedia's editor

 

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Equedia 2011 Media Kit  

 

Featured Posts

 

BNN: Potash Outlook with Ernie Lalonde, Senior Vice President, Mining, DBRS 

 

Wall Street Journal: EU Banks Scramble to Raise Capital 

 

Morningstar: Are Housing Stocks Getting Ahead of the Housing Market? 

 

 

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Equedia 2011 Media Kit 

 


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The Stock Market's Most Interesting Videos That You Should Watch 

  


Equedia Watch   
Companies Under Evaluation This Past Week

 

Rants and Raves 

 

Inside the mind of Equedia's editor - unrated, uncut, and unedited


 

Gingrich just destroyed Romney in South Carolina. But I am under the impression that Romney will be victorious and potentially the next US president should the republicans take over this year.

 

The big banks are supporting him. Here are the numbers:

 

 

Goldman Sachs

Total money spent on lobbying: $3.2 million

Political candidates who've gotten the most money 2011-2012:
  1. Mitt Romney (R, Presidential Candidate) -$367,200
  2. Kirsten Gillibrand (D, NY Senator) - $52,000
  3. Marco Rubio (R, FL Senator) - $51,000
  4. Barack Obama (D, President) -$50,125
  5. Scott Brown (R, MA Senator) -$46,150
Morgan Stanley

Total money spent on lobbying: $2.25 million

Political candidates who've gotten the most money 2011-2012:
  1. Mitt Romney (R, Presidential Candidate) -$199,800
  2. Barack Obama (D, President) -$33,175
  3. Kirsten Gillibrand (D, NY Senator) - $33,075
  4. Tim Pawlenty (R, Presidential Candidate) -$31,715
  5. Debbie Stabenow (D,  MI Senator) - $24,750 
Bank of America

Total money spent on lobbying: $2.21 million

Political candidates who've gotten the most money 2011-2012:
  1. Mitt Romney (R, Presidential Candidate) -$126,500
  2. Barack Obama (D, President) -$39,024
  3. Ed Royce (R, CA Representative) -$17,400
  4. Tim Pawlenty (R, Presidential Candidate) - $15,250
  5. Eric Cantor (R, VA Representative) - $13,500
UBS

Total money spent on lobbying: $3.2 million

Political candidates who've gotten the most money 2011-2012:
  1. Mitt Romney (R, Presidential Candidate) -$367,200
  2. Barack Obama (D, President)- $33,075
  3. Kirsten Gillibrand (D, NY Senator) - $30,500
  4. Bob Corker - (R, TN Senator) $15,700
  5. Tim Pawlenty (R, Presidential Candidate) -$12,250
Credit Suisse

Total money spent on lobbying: $1.37 million

Political candidates who've gotten the most money 2011-2012:
  1. Mitt Romney (R, Presidential Candidate) -$203,750
  2. John Boehner (D, NY Senator) - $18,500
  3. Barack Obama (D, President) - $15,807
  4. Nan Hayworth (R, NY Representative) -$13,500
  5. Steny Hoyer (D, MD Senator) - $12,250
JP Morgan

Total money spent on lobbying: $5.8 million

Political candidates who've gotten the most money 2011-2012:
  1. Mitt Romney (R, Presidential Candidate) - $112,250
  2. Mark Warner (D, VA Senator) - $79,150
  3. Bob Corker (R, TN Senator) -$56,750
  4. Barack Obama (D, President) - $37,689
  5. Jon Tester (R, MT Senator) -$34,000 
Ernst & Young

Total money spent on lobbying: $1.22 million

Political candidates who've gotten the most money 2011-2012:
  1. Mitt Romney (R, Presidential Candidate)- $52,000
  2. Ben Cardin (D, MD Senator) -$50,125
  3. Rick Perry (Presidential Candidate) -$47,800
  4. Orrin Hatch (R, UT Senator) -$46,150
  5. Thomas Leppert (R, TX Senator) - $35,500
Deloitte

Total money spent on lobbying: $2.23 million

Political candidates who've gotten the most money 2011-2012:
  1. Barack Obama (D, President) -$32,514
  2. Mitt Romney (R, Presidential Candidate) - $29.500
  3. Thomas Leppert (R, TX Senator) -$16,500
  4. Michael McCaul (R, TX Representative) - $15,500
  5. Robert Aderholt (R, AL Representative) -$10,000 
Pricewaterhouse Coopers

Total money spent on lobbying: $2.12 million

Political candidates who've gotten the most money 2011-2012:
  1. Mitt Romney (Presidential Candidate) - $118,250
  2. Scott Brown (R, MA Senator) - $14,500
  3. James Renacci (R, OH Representative) - $14,000
  4. William Flores (R, TX Representative) -$12,500
  5.  Paul Ryan (R, WI Representative) - $11,000
Prudential

Total money spent on lobbying: 0

Political candidates who've gotten the most money 2011-2012:
  1. Robert Menendez (D, NJ Senator) - $19,600
  2. Dave Camp (R, MI Representative) - $12,000
  3. Mitt Romney (R, Presidential Candidate) - $8,700
  4. Ed Royce (R, CA Representative) - $6,000
  5. John Boehner (R, OH Representative) - $5,000

Citigroup

Total money spent on lobbying: $4.1 million

Political candidates who've gotten the most money 2011-2012:  

  1. Mitt Romney (R, Presidential Candidate) -$57,050
  2. Barack Obama (D, President) - $36,887
  3. Mark Warner (D, VA Senator) - $36,500
  4.  Dave Camp (R, MI Representative) - $23,000
  5. Kirsten Gillibrand (D, NY Senator) - $18,000  

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