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An article for you from NEWS FINANCIAL & FOREX INFO.

NEWS FINANCIAL & FOREX INFO ( wants you to see this article on
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Alternatively subscribe to online only version by clicking on the link below and save 25%:
Jan 7th 2010

A Depression-era crusade against Wall Street has a 2010 revival
THE battle against the financial crisis may be ending, but the war over
why it happened has barely begun. The most ambitious effort yet to
settle the story begins next week with the first hearing of the
Financial Crisis Inquiry Commission.
Congress gave the ten-member bipartisan commission a sprawling mandate:
to investigate at least 22 potential causes, from excess global savings
to short-selling, and to explain why specific firms collapsed or needed
bail-outs. The report, due by December 15th, is not supposed to contain
recommendations but probably will.
Though modelled on the body that investigated the attacks of September
11th 2001, the spiritual father of this venture is the Pecora
Commission. This was named after Ferdinand Pecora, the chief lawyer on
the Senate Banking Committee from 1933 to 1934. His cross-examinations
brought forth revelations of widespread abuses on Wall Street: bankers
selling stocks at preferred prices to powerful friends, or giving
executives bonuses for dumping dud securities on the public. Within
days of testifying, the head of National City Bank, the predecessor of
Citibank, was forced to resign. The commission's findings led to the
creation of the Securities and Exchange Commission and the passage of
the Glass-Steagall Act, which separated commercial and investment
Bankers could be in for another public stoning. The heads of JPMorgan
Chase, Goldman Sachs, Morgan Stanley and Bank of America will appear at
the commission's first public hearings on January 13th and 14th.
Regulators and independent experts will also testify. Tim Geithner, the
treasury secretary, and Ben Bernanke, the Federal Reserve chairman,
have already appeared before the commission privately and should do so
publicly later.
The commission, chaired by Phil Angelides, the Democratic former
treasurer of California, is unlikely to make as big a stir as Pecora's.
Journalists, prosecutors and Congress have already produced a stream of
exposes of the crisis. Most of the star witnesses have been grilled
elsewhere already. The Obama administration hopes its own regulatory
overhaul will be done before the commission even reports.
Yet the commission seems bound to uncover some salacious wrongdoings
that will shape future reforms. Mr Angelides was a perennial thorn in
the side of business, using California's state pension plan to browbeat
bosses of firms he disapproved of, and he retains a dim view of Wall
Street. "In 1929, people were throwing themselves out of windows; in
2009, they were lining up for bonuses," he says.
A staff of up to 50 will interview hundreds of witnesses. Reluctant
ones will be subpoenaed. While national security required the 9/11
commission to keep private much of what it learned, Mr Angelides and
his Republican vice-chairman, Bill Thomas, want to post their findings
on the web immediately. If their final report is half as readable as
the 9/11 one, it, too, should be a bestseller.

See this article with graphics and related items at
Go to for more global news, views and analysis from the Economist Group.
- ABOUT ECONOMIST.COM - is the online version of The Economist newspaper, an independent weekly international news and business publication offering clear reporting, commentary and analysis on world politics, business, finance, science & technology, culture, society and the arts. also offers exclusive content online, including additional articles throughout the week.
Click here:
Subscribe now with 25% off and receive full access to:
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* the online archive - allowing you to search and retrieve over 33,000 articles published in The Economist since 1997
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An article for you from Fernando.

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Jan 7th 2010

Once again, cheap money is driving up asset prices
- - - - - Correction to this article

THE opening of the Burj Khalifa, the world's tallest building, in Dubai
on January 4th had symbolic as well as architectural significance.
Skyscrapers have long been associated with the ends of financial booms.
The Empire State Building opened in 1931, two years after the Wall
Street crash. The Petronas towers in Kuala Lumpur were unveiled in
1998, in the depths of the Asian crisis. Such towers are commissioned
when money is cheap and optimism about economic growth is at its
height; they are often finished when the champagne has gone flat.
The past three decades have been good for skyscraper-building. The cost
of borrowing money, in nominal terms, has fallen sharply (see chart 1).
Small wonder that one bubble after another has appeared in financial
markets, with the subjects of investors' dreams ranging from emerging
markets and technology stocks in the 1990s to residential housing in
the decade just ended. Nor is it surprising, with money so cheap, that
consumers and companies have indulged in regular borrowing sprees.
When investors borrow money in order to buy assets, they push prices
even higher. But this also makes markets vulnerable to sudden busts, as
investors sell assets to pay their debts. The credit crunch of 2007-08
was the result of this process, with the debts greater and the price
swings more violent than at any time in the past 30 years.
Critics argue that central banks, by focusing on consumer- rather than
asset-price inflation, have encouraged bubbles to grow by keeping
interest rates too low. By intervening when markets fall, but doing
little to curb them when they rise, they have offered investors a
one-way bet.
Such critics are worried that, in their eagerness to bring the credit
crunch to an end, the authorities may be making the same mistake again.
Official short-term interest rates are below 1% in much of the
developed world. Emerging markets, through their currency pegs, tend to
import these easy-money policies, even though most of them are growing
faster than the rich economies are.
Low rates have certainly persuaded investors to move money out of
cash. Investors withdrew $468.5 billion from money-market funds in the
course of 2009. The "carry trade"--borrowing in low-yielding currencies
to invest in high-yielding ones--is back in full swing. The Australian
dollar has been a popular beneficiary.
Equity markets have rebounded strongly: the MSCI world index is more
than 70% higher than its March low. Even bigger gains were seen in
emerging markets, with the Brazilian, Chinese and Indonesian bourses
all more than doubling, in dollar terms, last year. Those rallies have
by themselves helped boost economic sentiment and have brought to a
halt the vicious spiral of 2008, in which falling markets forced
investors to offload assets at fire-sale prices.
At the same time, in the English-speaking markets of America, Australia
and Britain, the stabilisation of house prices has bolstered consumers'
balance-sheets. Again, low interest rates have been a crucial
supporting factor.
Optimists argue that the markets are now in a sweet spot. The global
economy is recovering, with most developed countries coming out of
recession in the third quarter of 2009. The authorities, concerned
about the fragility of the recovery, will be reluctant to raise
interest rates in the near term. Thus investors have been given a
licence to buy risky assets.
Is this policy approach creating yet another set of bubbles? Some,
including Alan Greenspan, chairman of the Federal Reserve during the
euphoria of the 1990s and early 2000s, believe that bubbles can be
spotted only in retrospect. Others, such as Jeremy Grantham of GMO, a
fund-management group, argue that they can be identified by a surge in
prices (and valuations) to way above their previous trends.
In the model of market madness outlined by Hyman Minsky, a 20th-century
American economist, and by Charles Kindleberger in his book "Manias,
Panics, and Crashes", bubbles start with a "displacement"--a shock to
the financial system, perhaps in the form of a new technology such as
railways or the internet. This provides the "narrative"--the rationale
that persuades investors to join in. They start to believe that this
time around things will be different and that asset prices can reach
new heights.
The next stage is rapid growth in credit, which inflates the bubble. As
investors borrow money to buy the asset in question, the resulting
price rise makes the narrative more credible. At the peak, however,
investors no longer pay much attention to fundamentals, buying simply
on the belief that prices must rise further. This stage is marked by
very high valuations and by popular enthusiasm for asset
purchases--marked in the 1920s by shoeshine boys passing on share tips
and in the early 2000s by the popularity of property programmes on
Eventually, like a Ponzi scheme, a bubble runs out of new buyers.
Prices slump. "Euphoria" gives way to the final stage,
"revulsion"--until the cycle can begin again.
How do today's markets look in the light of that model? The best place
to start is in the developed world. There has been a "displacement", in
that the credit crunch caused central banks to slash rates and led
governments to unveil schemes to support banks, guarantee assets and
allow budget deficits to soar. Whereas investors were highly
risk-averse in late 2008, they have been encouraged to take their money
out of cash and to invest in higher-yielding assets like equities and
corporate bonds.
But although money is cheap, there has been no sign of the
private-sector credit growth that marks bubble phases. Indeed, small
businesses still complain that bank loans are hard to find. In the euro
area, the broad measure of money supply has even fallen in the past 12
months. In America, broad money grew at an annualised rate of only 1.2%
in the six months to November.
As further evidence that there is no bubble, bulls point to the
relatively modest level of prospective price-earnings ratios; the MSCI
world index is trading on a multiple of 14 based on prospective
earnings in 2010, according to Societe Generale, around the long-term
average. However, prospective multiples can be very dependent on the
optimism of the analysts who make the forecasts--and such analysts are
in the business of selling shares.
A better long-term measure is the cyclically adjusted price-earnings
ratio, which averages profits over the previous ten years (see chart
2). On this measure, valuations are nowhere near the 2000 peak. They
are, however, still pretty high by historical standards; Smithers &
Co, a firm of consultants, reckons they are nearly 50% above their
long-term average. Even now, after a dismal decade for shares, Wall
Street is offering a dividend yield of only just over 2%, compared with
a long-term average of 4.5%.
In housing, a measure based on rents shows that American prices are
back to fair value but prices in Britain, France, Spain and Australia
are all 30-50% above their historic averages. Low mortgage rates (and
government schemes to head off foreclosures) have stopped prices
falling to the lows of previous downturns.
That said, although prices remain higher than average, private
investors have shown little of the enthusiasm they exhibited in past
bubbles. Activity in the housing market is subdued. Investors withdrew
$36 billion from developed-market equity funds in the course of 2009,
according to EPFR Global, a data group.
More plausible candidates for bubble status can be found in emerging
markets. The rally in the developed markets has been driven by relief
that a second Depression has been avoided, rather than by any great
optimism about a new era. But emerging-market exports have survived the
crisis remarkably well. They were clobbered in late 2008, when the
collapse of Lehman Brothers sent the corporate sector into shock and
many businesses slashed their order books. Crucially, however, China
experienced not much more than a mild slowdown and recovered to grow by
around 8% in 2009.
As investors look to the future, emerging markets have many advantages
over their developed rivals. One, plainly, is higher potential rates of
economic growth. Another is that many emerging economies have stronger
fiscal positions than their Western rivals; they are the creditors
financing the American budget deficit.
The balance of power has already shifted. In 2003 the stockmarkets of
America, Britain and Japan formed 73% of the value of the MSCI
all-country index; by the end of 2009 this proportion was just 59%.
Enthusiasts like Jerome Booth of Ashmore, a fund-management group,
argue that this trend will continue, because emerging economies'
stockmarkets are underweighted in world indices, given their share of
global GDP. As the world rebalances, Mr Booth argues, investors from
emerging economies will increasingly want to channel their savings to
their own markets, rather than financing Western governments. Western
investors are already showing an interest in these markets: investors
shifted $64.5 billion into emerging-market funds last year.
This optimism explains why emerging markets now trade at a premium
(measured by the ratio of market prices to the accounting value of
assets) over developed markets. In the past, such premiums have usually
presaged a setback.
In addition, emerging markets are seeing much faster credit growth than
their developed rivals. In China, for example, broad-money growth in
the 12 months to November was almost 30%. Such growth is the logical
result of pegging a currency to the dollar, and thus importing a
monetary policy which may be right for America but which is too loose
for the fast-growing Chinese economy. Some of that credit growth is
leaking into asset markets. The Chinese premier, Wen Jiabao, said in
late December that the government would use taxes and interest rates to
stabilise the property market. House prices in Hong Kong are more than
50% above fair value, according to THE ECONOMIST's estimate. Though
they are not yet back at 2007 valuations, it is easy to imagine that
emerging markets will develop bubbles if a combination of low interest
rates and pegged currencies continues.
Another area where a bubble might be developing is in gold. Gold is an
unlikely cause of euphoria, given that investors use it as a bolthole
when they worry about inflation, currency depreciation or financial
chaos. But the metal has seen a speculative peak before, most notably
in 1980, when its price touched $835 an ounce, before losing two-thirds
of its nominal value over the next 20 years.
The main rationale for buying gold at the moment is that, in the face
of the credit crunch, most governments would like to see their
currencies depreciate to boost their exports. If paper money is being
"debased", that is bullish for gold, an asset that central banks cannot
create more of and that is no one else's liability.
The gold bugs may be right. But the price has already quadrupled from
its low and suffers from no real valuation constraints; it has no yield
or earnings against which to measure it, so it is hard to say when it
is "expensive". Dylan Grice, an analyst at Societe Generale, has
mischievously suggested that, if the Bretton Woods system (under which
the Fed was obliged to exchange its stock of dollars for gold with
other central banks) were operating today, bullion would trade at
$6,300 an ounce.
It seems likely that, if developed countries keep interest rates low
for a long time, bubbles will emerge somewhere. The argument against
tightening policy now is a strong one, given the fragile state of the
economic recovery. But to central banks it always is, whether the
economy is healthy or not.
It is hard to imagine any circumstances in which the authorities will
have the foresight (or the courage) to prick a bubble. It cannot be
done when the economy is weak. And when the economy is strong, as it
was in the late 1990s, central banks argue that higher asset prices are
justified (back then, by the productivity improvements brought by the
internet). Central bankers tend to see higher asset prices as a
validation of their policies and to shy away from "second guessing" the
Ben Bernanke, the Fed's chairman, argued in a recent speech that better
regulation, rather than tighter monetary policy, would have been the
key to pricking the American housing bubble in the past decade. Plans
for preventing future bubbles may depend on controlling the banks,
rather than setting the general level of interest rates. Lower
loan-to-value ratios would avoid the excesses of subprime lending while
higher capital ratios would prevent banks lending too much at the peak
of the cycle.
If the authorities can do little to stop a bubble inflating, what can
they do if markets suffer a further relapse? Interest rates cannot be
reduced further and it is hard to see the markets tolerating even
bigger budget deficits. That leaves quantitative easing (QE), the
policy under which central banks create money to buy assets, usually
government bonds. Even that may have its limits, if private investors
decide to sell government bonds as fast as central banks try to buy
Bears argue that the global economy is already far too dependent on
government stimulus. "Every basis point of [American] growth in [the
third quarter] came from government stimulus, directly and indirectly,"
says David Rosenberg of Gluskin Sheff, a Canadian asset-management
firm. Schemes such as "cash for clunkers" temporarily boosted car sales
but these quickly slipped again once government subsidies stopped. The
latest example occurred when pending American home sales fell by 16% in
November in anticipation of the end of a homebuyers' tax credit (which
has since been extended until the end of April).
These subsidies depend, in large part, on the ability of governments to
fund huge deficits at relatively low cost. And that is perhaps the
biggest issue of the moment.
On the one hand, the gap between short-term interest rates and
long-term bond yields is extraordinarily high. That allows banks, in
particular, to borrow at low rates from the central banks and invest
the proceeds in government debt; the same trick was used to rebuild
bank profits in the early 1990s. Russell Napier, a market historian and
an analyst at CLSA, a broker, thinks that purchases by a combination of
Asian central banks and developed-world commercial banks are causing a
bubble to develop in government-bond markets.
Investors may be looking to Asia for inspiration. Japan has run huge
deficits for 20 years and still has ten-year bond yields of under 1.5%.
If investors think the American economy is in for a similar period of
stagnation, then Treasury-bond yields of almost 4% (see chart 3) look
On the other hand, some point to the huge growth in central banks'
balance-sheets and to the use of QE. This indirect monetisation of the
budget deficit is, in their view, just another way of debasing the
currency. The Fed's entry for "total factors supplying reserve funds"
has jumped from $942 billion in the week before the collapse of Lehman
Brothers to almost $2.3 trillion. In Britain, the Bank of England's QE
programme has, in effect, financed the entire government deficit for
one year.
But both the Fed and the Bank of England seem to be winding down their
QE programmes and these may not be around to support bond prices next
year. However, there is scant trace of any rapid reduction in budget
deficits, at least in Britain and America. Governments that have
attempted to tackle them, such as Ireland's, have faced protests and
As a rule, governments find it far easier to increase their debt than
to reduce it. In the absence of rapid economic growth, debt reduction
usually means a period of austerity, a hard thing to swallow,
especially when the creditors are foreign. Iceland's president has just
refused to approve a deal repaying debts to Britain and the Netherlands
in the face of public opposition.
Governments also fear that premature fiscal tightening might only send
the economy back into recession. That was the mistake made by the
Roosevelt administration in 1937 and by the Japanese in 1997, when they
raised the consumption tax.
Finance ministers may be unwilling to take unpopular courses of action
until the rating agencies downgrade their debt or the market forces the
issue, by pushing bond yields sharply higher. Already, there have been
signs of market impatience with some countries, such as Greece, which
have been slow to address the problem. Investors may eventually demand
coherent strategies from the Americans and the British; Pimco, probably
the most influential private-sector bond investor, said this week that
Britain faced a cut in its credit rating without a credible
debt-reduction plan.
The markets are beset by a series of contradictions. They are dependent
on extraordinary amounts of government stimulus. But that stimulus is
in turn ultimately dependent on the willingness of markets to finance
governments at low rates. They should be willing to do so only if they
believe that growth prospects are poor and inflation will stay low. But
if they believe that, investors should be unwilling to buy equities and
houses at above-average valuations. At some time--maybe in 2010--those
contradictions will have to be resolved. And that will trigger another
nasty bout of volatility.
CORRECTION: We originally suggested that higher loan-to-value ratios
would avoid the excesses of subprime lending. Of course it's lower
loan-to-value ratios that would have this effect. This was corrected on
January 11th 2010.

See this article with graphics and related items at
Go to for more global news, views and analysis from the Economist Group.
- ABOUT ECONOMIST.COM - is the online version of The Economist newspaper, an independent weekly international news and business publication offering clear reporting, commentary and analysis on world politics, business, finance, science & technology, culture, society and the arts. also offers exclusive content online, including additional articles throughout the week.
Click here:
Subscribe now with 25% off and receive full access to:
* all the articles published in The Economist newspaper
* the online archive - allowing you to search and retrieve over 33,000 articles published in The Economist since 1997
* The World in - The Economist's outlook on the year
* Business encyclopedia - allows you to find a definition and explanation for any business term

This e-mail was sent to you by the person at the e-mail address listed
above through a link found on We will not send you any
future messages as a result of your being the recipient of this e-mail.

This e-mail message and Economist articles linked from it are copyright
(c) 2010 The Economist Newspaper Group Limited. All rights reserved. privacy policy:
The Economist, and CFO Europe are trading names of:
The Economist Newspaper Limited
Registered in England and Wales. No.236383
VAT no: GB 340 436 876
Registered office: 25 St James's Street, London, SW1A 1HG

MarketWatch: Monday Personal Finance Daily , January 11, 2010


Personal Finance Daily
JANUARY 11, 2010

Monday's Personal Finance stories

By MarketWatch

Don't miss these top stories:

At the beginning of 2009, with the financial world teetering on the brink, the best investment suggestions for the year ahead were pretty much defensive plays, like Treasury bonds. In January, nobody saw the turnaround that would begin just three months later, a move that would eventually make some of the riskiest investments - like emerging markets and high-yield corporate debt -- the biggest winners of the year.

You have to keep that in mind when viewing any investing-idea list for 2010, even ours. While history would suggest that this year will produce stock-market gains, albeit gains more modest than those of the last nine months of 2009, history is often a poor guide.

Your best bet for 2010 might be dividend investing, focusing on large multinational corporations. Yields on stocks like Pfizer, (PFE) near 4%, and AT&T, (T) over 6%, look good compared with most bonds and could give you some stock upside in a year when bonds are predicted to tank. But there are other ways to make money, too.

If you were cautious last year, it didn't mean you lost money. You just didn't make as much as the risk-takers. You could turn the tables this year, but even if you don't, that wouldn't be such a bad thing.

-- Steve Kerch, assistant managing editor/personal finance


Ten ideas for making money in 2010

Knowing that there can be too much of a good thing, many investors are wary of how stock and bond markets this year will follow their remarkable 2009 surge. One thing's for sure: This year won't be like the last.
See Weekend Investor.

International-stock ETF seeks to sidestep currency moves

Investment manager WisdomTree hopes a new exchange-traded fund that invests in foreign stocks but hedges currency exposure will find a receptive audience with investors nervous about the prospects of a strengthening dollar in 2010.
See ETF Investing.

Low yields spark high interest

Recent columns have spurred a lot of worries among fund investors. Perhaps you felt the same way, but didn't ask. If so, here are your concerns, and my answers.
See Chuck Jaffe.

Deflating the case for inflation-adjusted returns

A mild tempest in a teapot is brewing about measuring stock-market returns on an inflation-adjusted basis. As you will see, it is a controversy with implications for how investors judge success (or lack thereof).
See John Prestbo's Indexed Investor.

What Steve Jobs really should be unveiling

Enough of the Apple 'iPad' hype already. Is it an iPod that doesn't fit in your pocket? An "ebook" reader with even less battery life than an iPhone? Or just a netbook that lacks a keyboard? If Steve Jobs really wants to help his stockholders, there's something much simpler he could unveil later this month instead. A dividend.
See Brett Arends.

Don't bet on beating inefficient markets

Can't anyone here play this game? With the market so erratic at pricing stocks, it is tempting to think you can do better.
See Jason Zweig.

Expand your investment frontiers

The global financial crisis rattled investors world-wide. One thing the crisis didn't do: diminish the importance of investing overseas.
See Dave Kansas.


This life insurance policy is a grave mistake

The pitch was simple and compelling, coming as it did right after the turn of the year with resolutions on so many people's minds. It said that "$1 buys $50,000 in life insurance."
See Chuck Jaffe.


2010 Mazdaspeed 3: A steal of a deal

It seems that every time a test car comes by, there are trade-offs. Not so with this week's test car, the Mazdaspeed 3. Consider a zero-to-60 time of less than 6 seconds with a top speed of 155.3, an EPA rating of 18-25 mpg, and a price in the $24K range depending on equipment level. Put that together with an agile sports-car-like handling package that does not threaten to knock your fillings out, and you have a wonderful little hatch.
See Auto Review.

Time to walk the walk in Detroit

Automakers from around the world gather this week in the Motor City, hoping to sweep a truly ugly year under the floor mat and ring in 2010 with an armada of cars and trucks worthy of an industry revival.
See Ahead of the Curve.

High-tech cars are hurting local mechanics

Local auto-repair shops are suffering as cars become more high-tech. Charlie Turner has details.
 Listen to Radio Report.

Ford to unveil new Focus

Ford is unveiling a new fuel-efficient Focus at this week's Detroit Auto Show. Jeff Bennett gives a preview of what to expect from Ford and other auto makers.
 Watch Video Report.

Auto-company outlook anything but rosy

Heard on the Street columnist Liam Denning explains to Simon Constable why the long-term outlook for auto companies remains bleak, despite the upturn seen over the past 12 months.
 Watch Video Report.


At CES, companies focus on mobile entertainment, fashionable design

Wireless everywhere on devices that look nice: That sums up the key trends at the consumer-electronic industry's annual mega-bash, where form truly met function. Hundreds of companies this week showed off thousands of products, but the most interesting devices featured wireless access to the Internet and more attractive designs than ever before.
See Consumer Electronics.

Samsung's super-thin TV

Samsung is working to price its 0.3-inch-thick flat-screen TV. A look at the thin LED at the Consumer Electronics Show in Las Vegas.
 Watch Video Report.

Panasonic unveils big flat-panel TV

Panasonic unveils a 152-inch, 4K resolution flat-screen TV at the Consumer Electronics Show in Las Vegas. But you won't be able to buy this at your local store anytime soon.
 Watch Video Report.

Forbes. com : Intelligent Investing

Intelligent Investing with Steve Forbes


Intelligent Investing
Steve: The Fed Needs A Leash
Steve Forbes reins in the Federal Reserve for its creation of money out of thin air.
With Steve Forbes
Intelligent Investing Panel
The Great Bear Of Texas
Congressman Ron Paul tells Steve Forbes that the recovery is all hooey.
With Michael Maiello

Video: Intelligent Investing With Steve Forbes

Intelligent Investing With Steve Forbes
Dr. Ron Paul Wants To Open The Fed's Books
Texas Congressman Dr. Ron Paul wants to end the secrecy at the Federal Reserve.

Money Morning: Road Map To Recovery

Money Morning E-letter

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the Dollar
January 11, 2010
How to Profit From the "Road Map to Recovery," Regardless of What Lies Ahead

By Jon D. Markman, Contributing Writer, Money Morning

Getting both sides of a bear market and recovery right is the biggest test that investors face because it requires doing an about-face on a winning strategy.

The ideal investor would have sold in October 2007 when stocks were making new all-time highs, then stayed out of all subsequent rallies during the worst bear market in seven decades, and then bought back into the market at its once-unimaginable low after not just the wheels of the economy had fallen off, but seemingly the engine, doors and steering wheel as well.

Also, the ideal investor didn't just need to recognize those inflection points, but make the most of his observation by exiting in full in October 2007 and re-entering with guns blazing in March 2009. That is even harder. The most common scenario would be to exit partially and enter partially.

Recognizing that only the most prescient investors will get these inflection points exactly right, I have focused my long-term research since the 2000 bear market on paying as much attention as possible to the message of the ticker tape rather than economics or fundamentals when it comes to these calls.

Continue ...

Markman on...
- Ignore the Crowd ... It’s Time to Invest in Commercial Real Estate

- Which Sector Will Step Up and Lead Bulls in 2010?

This Report Will Change How You Invest...Forever

Keith Fitz-Gerald’s new report is out and generating huge buzz among Money Morning readers. A few years back, Keith made some discoveries that turned his views on investing upside down. Changed everything. Now he’s got some hard numbers from the recent market that prove his new theory is right. The report isn’t just theoretical, though. Keith shows you how you can apply his thinking to your own portfolio. Click here.

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The Seven Investment Risks to Avoid in 2010

By Larry D. Spears, Contributing Writer, Money Morning

Spurred by its best annual performance since 2003, U.S. stocks stampeded into the New Year, with the Dow Jones Industrial Average, the Nasdaq Composite Index and Standard & Poor's 500 Index posting gains of 1.49%, 1.73% and 1.60%, respectively. And while that's certainly a respectable beginning, investors shouldn't assume it signals that a bull market run its course for the full year.

Indeed, while Money Morning's outlook for 2010 is generally positive, there are at least seven major risks that could rein in the charging bull - or even release an angry bear into the trading arena.

The top risks consist of...


Buy, Sell or Hold: Google Inc. Sure to Surprise After Adapting to New Technology

By Horacio R. Marquez, Contributing Editor, Money Morning

When Google Inc. (Nasdaq: GOOG) reports its fourth-quarter and full-year earnings on Jan. 21, the Internet search giant is poised to once again surprise Wall Street by beating expectations and reporting an increase in market share.

It is awe-inspiring to think about what Google is and what it has accomplished in such a short period of time. Just this week, German Justice Minister Sabine Leutheusser-Schnarrenberger told the weekly magazine Der Spiegel that Google has already become a "giant monopoly" like Microsoft Corp. (Nasdaq: MSFT).

Google invented the very best search engine and now it is reaping the benefits.

Yet even though the company's strategy has attracted more visitors than any other Web site, Google - as Chairman and Chief Executive Officer Eric E. Schmidt rightly pointed out in a recent interview - is just one click away from being dropped by its customers.


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2010 Course Calendar Available Now!
Following on from the success of previous years, in 2010 LME Education will be offering courses in a variety of locations worldwide including Mumbai, London, Dubai, Stockholm, Zurich, Vancouver, Cape Town, Madrid, Krakow, Istanbul, Zurich, Stockholm, Sydney and Lima. Click here to view the full list of courses, dates and locations for 2010.

TOP STORIES > Monday , 11 Jan 2010                                                     

Nevada still offers excellent potential for discovering and developing gold assets

Monday , 11 Jan 2010
Investment bankers Dahlman Rose say prospective Nevada exploration and mining projects--not belonging to Newmont or Barrick--also offer junior company investors high-return opportunities in a rising gold price environment.

Gold's stellar performance set to continue in 2010

Monday , 11 Jan 2010
Historically gold bull markets have lasted as many as 15 to 25 years, this one has only been going since 2001.

Nyrstar offers $137m for CBH Resources

Monday , 11 Jan 2010
The bid for the Australian zinc miner comes as CBH is getting ready to double output and as Nyrstar's current main source of Australian supply nears the end of its natural life

China - gold's No1 producer and consumer is taking control of the market

Friday , 08 Jan 2010
With China now the world's No. 1 producer and consumer of gold, and the prospect of Chinese and Indian demand alone exceeding 1,000 tonnes a year in the next few years, gold's price looks to be under new control.

Average gold price to rise almost 30 pct in 2010 on investment demand - Ross Norman

Friday , 08 Jan 2010
Ross Norman has proved to be one of the most accurate gold price forecasters in the London Bullion Market Association's annual gold price prediction survey and his precious metals price forecasts for this year are all positive.

Brazil to demand participation in, and more taxes and royalties from, mining companies

Sunday , 10 Jan 2010
Brazil's Energy and Mines Minister has said the country will be looking for participation in mining company output as well as higher taxes and royalties in a reform of the mining law

South Gobi looking to raise $465m in Hong Kong IPO

Monday , 11 Jan 2010
The company which is owned by Ivanhoe has secured the China Investment Corporation and Temasek as cornerstone investors

Riversdale Mining gets go ahead for Mozambique coal project

Monday , 11 Jan 2010
Mozambique's government has granted permission for the Australian company to proceed with its $800m Benga coal project

Canplats board reiterates support for Goldcorp bid

Friday , 08 Jan 2010
The group has postponed a shareholder meeting to Jan 28 to give shareholders time to assess the newly revised bid

French mining giant to build Gabon manganese plant for USD286 million

Saturday , 09 Jan 2010
Major French nickel and manganese mining company, Eramet, is to build a new manganese plant in Gabon as the African nation moves to diversify its economy.

Debswana cuts diamond mine jobs to streamline costs

Friday , 08 Jan 2010
Lay offs aimed at mines

Mexican gold and silver explorers - opportunities and insights

Sunday , 10 Jan 2010
Selected Mexican precious metals exploration companies have produced great returns over the past few years, but due diligence is the key to picking the best performers. The Gold Report interview.

Terrane Metals to go ahead with Mt. Milligan copper-gold project

Friday , 08 Jan 2010
Goldcorp retains its equity interest in Terrane

Poland sells 10% of state copper miner KGHM for $720 million

Saturday , 09 Jan 2010
As part of its privatization plans to raise some $8.8 billion, the Polish Government has sold 10% of Europe's second largest copper miner for $720 million.

Weekend Top Story: Huge new Australian gold mine gets green light

Friday , 08 Jan 2010
A major new mine that will guarantee Newcrest will remain the dominant gold producer in the Australian State of New South Wales this decade was given the green light Friday.


Vancouver Resource Investment Conference, Vancouver, BC, Canada. January 17-18. Cambridge House International’s 2- day investment conference at which Mineweb will be exhibiting in conjunction with Infomine.
Mineral Exploration Roundup 2010, Vancouver, Canada – January 18-21. Canada’s west coast equivalent of the PDAC for mineral exploration and investment. Mineweb will be attending.
2010 Mining Indaba, Cape Town, South Africa. February 1st to 4th. Most important annual mining investment event on the African continent. Mineweb is a media partner and also will be exhibiting.


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