The Insider Report

Why Financial Institutions Should Move to Asia

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Financial Institutions around the world and especially those in Europe and the USA face a crucial set of choices about the future of their institutions. Western Governments are riddled with debt and their only way out is decades of austerity and taxes, but the new world is a mobile world, globalization has set limits on how much a government can impose it’s will on the corporations and citizenry of a nation. Excess taxes and austerity will lead to a mass financial migration to emerging markets. For advise on moving to Asia, contact us Having spent most of my life in Asia, … Read more

Investing in a Crisis

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Mobility and a long term outlook are essential when managing your portfolio in a crisis. The ability to select the best quality long term investments from the traditional and emerging markets. For hedging mobility is key, the ability to access Foreign Exchange, Commodities and Futures to balance your risk is a new fundamental asset for investors. Cash is no longer king and the value of the USD is being eroded which means everyone must rethink their investment strategy and adjust their portfolio holdings. While many think that if they live in the USA and earn in USD nothing will change, … Read more

Banks Overwhelmed by Mortgage Refinancing After Job Cuts

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Sept. 2 (Bloomberg) — Mortgage rates near historic lows have sparked a refinancing boom that has U.S. lenders struggling to handle the surge. “There’s just so much volume,” said Kristin Wilson, a senior loan officer in Bloomington, Minnesota, for Fairway Independent Mortgage Corp., who has seen clients seeking lower rates climb to about half of her business from 20 percent a month ago. “We can’t just ramp up by hiring inexperienced people because they don’t know what they’re doing.” The lending logjam extends to the nation’s biggest banks, which fired thousands of mortgage workers after interest rates rose in November … Read more

Stocks plunge after US hiring dries up in August

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NEW YORK (AP) — Stocks tumbled Thursday after a dismal report on the job market renewed fears of another recession. No new jobs were created in the U.S. last month, the government said early Friday. It was the worst report in 11 months. The unemployment rate held steady at 9.1 percent. It has been above 9 percent in all but two months since May 2009. “It’s certainly ugly,” said Jeff Kleintop, chief market strategist at LPL Financial. Kleintop said the report didn’t change his view that the economy was headed for a stretch of weak economic growth, not a recession. … Read more

Achieving Growth in Europe

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Achieving Growth in Europe Eurozone manufacturing activity contracted for the first time in almost two years in August, underlining investor concerns about a deteriorating global growth picture. In a worrying sign for policymakers, the regional slowdown appeared to be spreading. German factories, which have supported growth in the bloc for some time, hit the brakes in August and France’s manufacturing sector contracted for the first time since July 2009. Speech by Jean-Claude Trichet, President of the ECB at the Jackson Hole Economic Symposium Panel: Setting priorities for long-term growth Jackson Hole, U.S.A., 27 August 2011 The title of our panel … Read more

U.S. judge pans rush in BofA $8.5 billion mortgage pact

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(Reuters) – A judge questioned why Bank of America Corp’s $8.5 billion settlement with mortgage securities investors was being rushed for approval and whether the trustee that negotiated it treated investors fairly. U.S. District Judge William Pauley set a September 21 hearing to consider requests from some investors to move the case to Manhattan federal court from a New York state court, where the trustee Bank of New York Mellon Corp wants it handled. That timetable is slower than Bank of New York Mellon wanted and could imperil a scheduled November 17 hearing before New York State Supreme Court Justice … Read more

US Dollar to Come Under Pressure

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The United States has the least balanced maturity schedule of any major nation. Over 70 percent of its bonds mature within 5 years, compared with an average 49 percent for the 34 member countries in the OECD. The U.S. Treasury has succeeded in extending the average maturity of its debt to 62 months, out from less than 50 months in 2009. That process needs to continue. One sign that investors are more nervous about longer-dated bonds is that the yield gap between 10-year notes and 30-year bonds, currently the longest U.S. maturity, is trading at 137 basis points. This gap … Read more

The Noise About a Gold Bubble

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Red’s POV on all of this Noise about a Gold Bubble Gold may be a bit over extended in, but it is not a place to make a Bearish call IMO. The Gold Bears had a shot the Gold price last week, when Gold put in a temporary Top at 1911 oz and began it healthy correction. It tapped 1709 three days later. That 10.5% fall did not drive the Gold Bulls away, the Gold players saw the dip as technical mark to start buying again, and Gold’s has rallied 7.3% off that low. And during the rebound the CME … Read more

Merkel backs euro fund boost, faces revolt risk

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(Reuters) – German Chancellor Angela Merkel’s cabinet approved new powers for the euro zone’s bailout fund on Wednesday, but she faces an uphill battle to convince party skeptics to back efforts to contain the crisis. Concerned that Germany’s parliament has little control over the European Financial Stability Facility (EFSF), some members of Merkel’s center-right coalition are threatening to oppose boosting its powers when the Bundestag (lower house) votes on September 29. If enough conservatives rebel and Merkel is forced to rely on opposition parties to pass the legislation, she could face pressure to dissolve parliament and call early elections, although … Read more

Investors slash equities in August melt

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Reuters) – Global investors slashed their holdings of equities below 50 percent this month and piled into cash, reflecting what was lining up to be the worst August for world stocks since 1998. They also lifted exposure to bonds in North America, Britain and, to a lesser extent, the euro zone, where Germany is considered a safe haven. Reuters polls of 57 leading investment houses in the United States, Europe ex-UK, Japan and Britain showed the average stock holding in a balanced or model portfolio falling to 49.2 percent. It was the lowest since at least February 2009, when the … Read more

Global stocks at two-week high, rally may stall

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(Reuters) – Global shares edged up to their highest in nearly two weeks on Tuesday, but the rally looked to be running out of steam on the back of concerns over Europe’s debt troubles and U.S. growth. World stock markets, as measured by MSCI, were up 0.17 percent, but European markets were mixed, with Germany’s DAX index down half a percent and U.S. futures pointed to a weaker open for Wall Street. With big-ticket data like U.S. job numbers due later this week, many investors remain uncertain about a recovery in the world’s largest economy, leaving risk for a correction … Read more

Banks Lead Greece Recovery

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Greek stocks rallied, with the benchmark ASE Index climbing the most in more than 21 yrs, as EFG Eurobank Ergasias SA (EUROB) and Alpha Bank SA announced a merger. Eurobank and Alpha Bank each rose by the allowed daily limit of 30% after saying they will combine and sell new equity to strengthen their capital in an attempt to weather the debt crisis. Larger rival National Bank of Greece SA (ETE) gained the most on record while Piraeus Bank SA (TPEIR) had the highest advance in almost 18 yrs. The ASE rose 14% to 1,006.59 at the 5 p.m. close … Read more

Industries Prone To Bubbles and Why

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A bubble (sometimes called an asset bubble, financial bubble or investment bubble) exists when the market prices of assets in a particular class far exceed those assets’ true value. These inflated values are unstable and eventually fall dramatically. Dozens of bubbles have inflated and burst over the course of history. While some bubbles appear to be one-time events, certain industries have seen bubbles form repeatedly, with investors seemingly never learning from past mistakes. Let’s examine a few of these industries and what appears to make them bubble-prone. Precious Metals In times of economic turmoil, many investors view precious metals as … Read more

Greek Banks to Merge

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ATHENS—Two of Greece’s largest lenders, Alpha Bank SA and EFG Eurobank Ergasias SA, Monday announced plans for an estimated €7 billion ($10.15 billion) tie-up that would create the country’s largest bank, in a bid to address mounting problems in the Greek banking sector. “I am confident that the new combined entity will act as an important agent for the economic development of the country,” Eurobank Chairman Efthymios Christodoulou said. “It is also well placed not only to withstand the current economic turbulence, but to create new opportunities and play a pivotal role in the future growth of the region.” According … Read more

What a week! My prediction for next week.

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The nay sayers, glass half -empty, perma-bears, and high frequency traders did their best to crack my resolve.  But beware, when you live out West with three ski resorts out your deck, highs in the high 70’s with no humidity, it take more than Chicken Little to make me croak.  East coast types were palpitating about the rare hurricane, Irene, that seemed to be bearing down on Wall Street.  With the German DAX and Greece debt in free fall, weather cooperated to make the average hedge fund type positively cataclysmic.  Hard to believe the market rebounded 4.5% for the week, … Read more

Analysis: “Safe haven” assets start to look risky – Yahoo! Finance

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Analysis: “Safe haven” assets start to look risky tA bank clerk removes 200 Swiss franc banknotes out of a money counter in a bank in Zurich August 16, 2011. REUTERS/Arnd Wiegmann On Friday August 26, 2011, 6:04 am EDT By Jeremy Gaunt, European Investment Correspondent LONDON (Reuters) – This year’s heady bout of risk aversion on financial markets has ratcheted up demand for gold, U.S. Treasuries and the Swiss franc to levels that suggest they may no longer be the “safe havens” they are billed as. Some investors see all three as vulnerable to a sharp sell-off should the global … Read more

Can Apple Be Apple Without Jobs?

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Wednesday evening’s announcement from Apple (Nasdaq:AAPL) that CEOSteve Jobs was resigning could hardly be called a surprise, but it will certainly accelerate a transition process that has been ongoing in fits and starts for a number of years. Apple has tapped a solid manager to replace Jobs, but competition in Apple’s core markets is heating up and investors may be right to wonder whether the company can maintain its over-the-horizon vision and ultra-confident operating strategy without such a rare visionary leading the show. News That Really Isn’t New That health issues would eventually force Steve Jobs to step down from … Read more

‘s Jackson Hole Fed Meeting Remarks

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For one weekend every year, the economic world turns its watchful eyes away from New York and Washington and to Jackson Hole, Wyo. This weekend, the Kansas City Federal Reserve will again host the annual Federal Reserve conference in the valley just outside Yellowstone National Park. Recent economic troubles have brought intense scrutiny to the meeting, and markets will be watching Fed Chairman Ben Bernanke’s Friday morning speech particularly closely for the barest hint of future policy moves. Full article available @: http://finance.yahoo.com/news/Markets-Await-Bernankes-usnews-3591226210.html?x=0&sec=topStories&pos=main&asset=&ccode=

Buffett’s Berkshire to Invest $5 Billion in Bank of America

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Aug. 25 (Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc. agreed to invest $5 billion in Bank of America Corp., aiding a lender hobbled by costs tied to subprime mortgages. Buffett’s company will get a 6 percent dividend on his preferred stock investment and warrants to buy 700 million common shares about $7.14 each, according to a Business Wire statement today from Omaha, Nebraska-based Berkshire. –Editor: Dan Kraut   Full article available @: http://www.businessweek.com/news/2011-08-25/buffett-s-berkshire-to-invest-5-billion-in-bank-of-america.html

Treasuries Advance as Report Shows U.S. Jobless Claims Rose

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Aug. 25 (Bloomberg) — Treasuries rose as a government report showed initial jobless claims unexpectedly increased last week, fueling concern the economic recovery is slowing and stoking demand for U.S. debt. Treasuries snapped three days of decline speculation Federal Reserve Chairman Ben S. Bernanke may disappoint investors betting on a commitment to step up stimulus. European and Asian stocks rose a day before Bernanke’s remarks at a conference in Jackson Hole, Wyoming. Pre-auction trading indicates today’s $29 billion government offering of seven-year notes will produce a record low auction yield. “The Treasury market is reacting to the headline number being … Read more

VIX Falls as Sentiment Turns on Wall St

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TVIX, a measure of stock market volatility, fell 5% percent to 33. The VIX traded as high as 48 Aug. 8 after staying below 20 for much of the year. VIX is the ticker symbol for the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 index options. Often referred to as the fear index or the fear gauge, it represents one measure of the market’s expectation of stock market volatility over the next 30 day period. The VIX is quoted in percentage points and translates, roughly, to the expected movement in … Read more

‘s cuts Japan rating, blames politics

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(Reuters) – Moody’s Investors Service cut its rating on Japan’s government debt by one notch to Aa3 on Wednesday, blaming a build-up of debt since the 2009 global recession and revolving-door political leadership that has hampered effective economic strategies. Japan is preparing to elect its sixth leader in five years to replace unpopular Prime Minister Naoto Kan, under fire for his handling of the response to a March tsunami and subsequent radiation crisis at a crippled nuclear power plant. The downgrade, while not out of the blue, served as another reminder of the debt burdens that nearly all of the … Read more

Investors trade in tight range ahead of Bernanke speech

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(Reuters) – World stocksedged up and oil advanced on Wednesday as investors tried to position themselves ahead of a Federal Reserve Chairman Ben Bernanke’s key speech. The gains follows weeks of market turmoil, with disappointing U.S. economic news and escalating worries about the debt crisis in Europe hitting sentiment. Benchmark stock indexes are on track for their worst month since the fall of 2008, after the Lehman Brother fall. World stocks as measured by MSCI .MIWD00000PUS were up 0.1 percent on the day but were on track for a 10.3 percent year-to-date loss. The U.S. benchmark Standard & Poor’s 500 … Read more

To my friend, the bear

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Darn, a 322 point rally just after you announced a five alarm fire with the sell all call to boot. Yes, we’ve taken a hit.  Confidence is way down and that’s what most of the early indicators are showing.  But don’t’ listen to what we say, look at what we buy.  People lust over Apple products, Taylor Swift concerts, and the residential rental market is absolutely booming.  Maybe owning a house is not the best idea for everyone after all. Europe is a great concern to us but then we appear to be a great concern to them and then … Read more

Markets Rally Ahead of Fed News

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US shares add to gains on anticipation of Fed action US Stocks are rallying Tuesday, with the S&P 500 and the NAS up more than 2%, as buyers emerged before a highly anticipated address by US Federal Reserve Chairman Ben Bernanke later this week. Technology and other growth stocks drove much of the market’s gains, with the S&P Information Technology Index .GSPF up 2.4%. A weaker-than-expected reading of the US housing sector was the latest in a string of discouraging data that has raised expectations the US Fed will take measures to prop up the economy. New US single-family home … Read more

Obama Talks to Buffett About Economy

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President Barack Obama, preparing for a post-Labor Day speech with plans for stimulating the economy, talked with billionaire Warren Buffett about how to boost job creation and spur growth. “The president and Mr. Buffett discussed the overall outlook on the economy and the reaction to the headwinds we’ve experienced over the last couple of months,” said Josh Earnest, an administration spokesman. “They talked a little bit about some possible measures that would spur investment and increase economic growth and they also talked about some measures that could address the long-term fiscal situation in this country.” Obama placed the call yesterday … Read more

Obama’s Attack on Goldman Sachs May Trigger Recession

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The regulators Goldman Sachs NYSE:GS witch hunt is spooking investors. Goldman shares fell sharply in the final minutes of regular trading after Reuters reporting the hiring, finishing down 4.7 percent at $106.51, their lowest level since March 2009. They slipped further in after-hours trade to $105.45. Should a large scale prosecution or arrest be made the US market faces a real crisis. Whilst it has been a bumpy economic year in the USA it is our opinion the economy has recovered well from the 2008 disasters despite poor administration and wasteful spending in the White House. However, Obama’s latest attack … Read more

Ongoing Greek Bail Out

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Greece will receive next tranche of EU-IMF aid on time Greece will receive the next tranche of EU-International Monetary Fund (IMF) aid package on time in September, Greek Deputy Prime Minister and Finance Minister Evangelos Venizelos said Monday, rejecting scenarios of potential delays and obstacles due to the ongoing debate within the EU over the loan collateral. “Our financing needs next month will be covered. There are funds available. There are about 45-B Euros (US$57.69-B) still available from the 1st bailout pact,” stressed Mr. Venizelos during a press briefing at the Finance Ministry. Some EU member countries over the past … Read more

China Details Yuan Use Offshore

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SHANGHAI–China has released draft guidelines on foreign investors’ use of yuan acquired overseas for direct investment in the country, taking another significant step forward in further internationalizing the Chinese currency and opening the nation’s tightly controlled capital account. In a statement late Monday, the Ministry of Commerce laid out for the first time the framework for the so-called yuan-denominated foreign direct investment, formalizing a trial program launched in the second half of last year. While under the trial program approvals were granted on a case-by-case basis, the new … Full article available @: http://online.wsj.com/article/SB10001424053111903461304576525731746088812.html?mod=rss_whats_news_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+%28WSJ.com%3A+What%27s+News+US%29&utm_content=Google+Reader