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If You Don’t Watch This Chart, You’re Going to Lose Money
The chart is of the long-bond yield. The "long bond" is the nickname for the 30-year Treasury bond.
As I wrote in my last essay, long-bond prices are plummeting right now. They have just broken down to new five-month lows… and the selling pressure is so strong, not even the Fed’s printing press can hold prices up.
When the long bond falls in price, its interest rate rises… The long bond’s yield was as low as 2.5% in December. It has now risen past 4%. This could be a huge problem for income investors
The long bond competes with other income investments for investor…
6May2009 | Stansberry and Associates | 1 comment | ContinuedThe Best Short-Selling Opportunity of the Year
Traders were ducking champagne corks on Wall Street yesterday. The S&P 500 closed in the green for the first time this year. Stocks have erased the 26% loss suffered during the first 10 weeks of 2009 and are now up 0.6%.
Yippee. Let the celebration begin.
Sadly, I left the party a couple weeks ago, when the S&P crossed over 855. Worse yet, I started slowly building short positions. So while everybody else was letting the good times roll, I was feeling a bit like a nun strolling through a brothel.
It is difficult to be cautious as stock prices race…
5May2009 | Stansberry and Associates | 0 comments | ContinuedThis Is When the Big Money Is Made in Stocks
On March 20, I titled DailyWealth "A Dramatic Turn for the Better."
I laid out our True Wealth "script" for making money… with the conclusion that "Now is the time in the script that you want to buy stocks."
We hit the nail right on the head. And we’re still "on script." In mid-March, I told my paid subscribers, "The entire market could rise by 50% from its lows last week over the next 18 months." We’re already well on our way to seeing that prediction come true. The important thing to understand now is this:
Things are getting less bad. This is when the…
5May2009 | Stansberry and Associates | 0 comments | ContinuedWhy Today’s Market Is Perfect for Traders
Stock prices are moving up and down at great speed and in extreme price swings. This is because no one knows where the next bankruptcy will strike or what the government will do next.
In other words, "we’re back in the 1970s."
The 1970s were the Wild West of stock markets. The government was intervening like crazy, there were big oil spikes, economies were weak, and we were in the middle of a long bear market. The commodity and stock markets spent the whole decade soaring and plunging.
There’s only one way to make a fortune in crazy markets like…
4May2009 | Stansberry and Associates | 0 comments | ContinuedThis Market Is Weaker Than a Wet Paper Bag
Here’s the magic number: 124.07. That’s the number you need for shorting U.S. government debt.
In my DailyWealth column April 13, I said if the long bond fell below 124.07, it would signal a bond bear market. Well, the long bond closed at 123.26 last Tuesday and is now making new five-month lows…
The "long bond" is the nickname for the 30-year Treasury bond. It’s the longest-dated debt instrument the U.S. Treasury issues. And on March 18, the Federal Reserve announced it would buy $300 billion "longer-dated" Treasury bonds.
This was the news the bond bulls had been waiting for. The world’s most powerful…
4May2009 | Stansberry and Associates | 0 comments | ContinuedDon’t Get Suckered into These Swine Flu Trades
Every time a news story about SARS, avian influenza – and now swine flu – hits the headlines, a handful of biotech executives swap high-fives.
See, "public-health emergencies" often mean big moves in the stocks of a dozen or so biotech companies chasing new ways to fight infectious disease or develop the "next-generation" vaccine. When panic strikes, these firms crank out press releases like popcorn, claiming their drug or technology will be indispensable in a crisis.
Take two Maryland-based biotech firms – Novavax (NVAX) and BioCryst (BCRX) – for example…
Novavax claims its technology is the fastest way to develop new vaccines. Problem…
1May2009 | Stansberry and Associates | 0 comments | ContinuedHow to Buy the World’s Cheapest Market… at a Double-Digit Discount
Russian stocks have just been obliterated…
The net asset value of the Templeton Russia Fund (TRF) is down more than 70% in less than a year. The average stock in the fund is selling for less than four times earnings – that’s practically a giveaway price.
But since its March lows, the stock price of the Templeton Russia Fund has doubled… it’s in a clear uptrend.
In short, Russia is now the cheapest stock market in the world… It’s absolutely hated and ignored by investors, who are terrified of risk right now… And it is in a rip-roaring uptrend. You should consider getting in…
But you shouldn’t buy the…
1May2009 | Stansberry and Associates | 0 comments | ContinuedMeet the Investors Who Will Send Gold to $2,000 per Ounce
For the first time in a couple of decades, some of America’s most successful, big-name investors are buying gold.
David Einhorn, the hedge-fund manager who predicted the downfall of Lehman Brothers, recently bought gold for the first time. And then there is John Paulson, the guy who made billions of dollars by correctly anticipating the housing bust and credit crisis. Paulson just plunked down $1.3 billion for an 11% stake in major gold miner AngloGold. He’s also got a big position in Kinross Gold.
Peter Munk, the 82-year-old chairman and founder of Barrick Gold, also offers up his own anecdote about gold’s…
30Apr2009 | Stansberry and Associates | 0 comments | ContinuedThe Commodity Investor Q&A
With Matt Badiali
Q: I see that the natural gas price is really low right now, should I buy? – B.A.
A: With natural gas prices so low… and the hurricane season coming up… I think natural gas makes an interesting speculation right now.
At the beginning of this month, I argued that an excess of natural gas supply will probably keep prices down for a long time. But a supply crunch this summer could easily shoot prices up 50%. Let me explain…
Demand for natural gas is seasonal… It peaks in the winter and bottoms in May or June. There is a…
29Apr2009 | Stansberry and Associates | 0 comments | ContinuedThe Cheapest Real Estate in the World
"All of a sudden, it became a monster…"
I was on the phone with my friend Andrew. Andrew is 25 years old. He’s been trying to get a business off the ground. Recently, his phones started ringing… and they’re still ringing nonstop…
"A guy from Vegas called. He bought 35 houses with cash. Then a guy from Toronto called. He bought eight houses and a 186-unit apartment community. We just had another guy in from Toronto looking to buy 50 rental properties."
Someone else was speaking on a phone a few yards away. More phones rang in the background.
"We’re getting calls from all…
29Apr2009 | Stansberry and Associates | 0 comments | Continued
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