Stocks & Equities

The Idea that Stocks are in a Bubble is Absurd

This gentleman makes the case very powerfully that stocks are not in a bubble. This jibes with Martin Armstrongs view that the Dow is heading to 35,000 – 39,000 in the next two years as money flows from the Treasury markets to Stocks. Definitely worth watching this youtube below by Gary Savage who uses the $XVG Value Line Geometric Average as a proxy as it measures all the stocks in the US Market – Robert Zurrer for Money Talks

 

Stocks have only recently broken above a 20 year long consolidation period. Price may now enter a parabolic phase or be beginning another long term bull market. In either case, this video explains why stocks are not presently in a bubble.

https://blog.smartmoneytrackerpremium.com/

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The Top 3 Articles of the Week

game-has-changed1. Peril Danger Warning! Greg Weldon on Feb 10th 2018

   by Michael Campbell

A word to the wise – big name analyst, Greg Weldon issues a major warning for investors. Hint: the game’s changed. 

….continue HERE

2. Peter Grandich: Blip or Warning Shot

Must read: A report from someone who shorted this market and covered it right on the bottom February 9th. That is one hell of a trade.

….read it all HERE

3. Key Change That Nobody Talks About

Last week, everyone focused on the stock market sell-off. Reasonably enough, given the pace of the declines. But the analysts failed to pay enough attention to the very important shift. That change may be more important than Trump’s victory in the presidential election.

…read more HERE

The 1% Notion is Absurd

craig burrows oct 2016I am a proud Canadian. I love this country but I’m quite concerned about government tax policies that promote the idea that 1% should be able to subsidize the remaining 99%. I’m all for paying my fair share of taxes but when governments can literally seize more than 50% of your earnings, that is not fair. The problem with democracy is the notion “Our solution becomes your problem” is real if enough people support a particular platform.

The 1% notion is absurd. According to StatsCan, there are approximately 270,000 Canadians that would qualify for that category. Imagine the city of Saskatoon (250,000) subsidizing the rest of the country? The math and the premise simply don’t add up. I met with Finance Minister Bill Morneau at a business meeting in Toronto before Christmas and I asked how he can compare Canadians that are high income (professionals / small business owners) to the people like himself who have millions in net assets in and out of the country? His response is the average Canadian earns $50,000 per year so if you make over $200,000 per year, you’re rich. He believes a billionaire or someone who inherited their wealth are the same as your small business owner who have little assets but make a good income.

You may think someone that owns their own business that earns more than $200,000 is rich but consider they don’t qualify for EI, have no gold-plated pensions and they work a lifetime to hopefully sell their business to use as their pension when they retire. If the government takes $100,000 for income tax, the $100,000 left over isn’t much to live on and create a nest egg to retire based on the risk. The biggest difference between a small business owner and an employee is when an employee fails, they lose their job; when a small business owner fails, they lose their house.

As I said before, people have to pay their fair share of tax. That being said, we also believe that every Canadian should take advantage of any tax credit or deduction the government will provide you. We see three strategies:
1. Maximize your registered funds
2. Invest in opportunities that provide capital gains to reduce tax paid. This is one reason the public markets have had a run but it comes with volatility
3. Invest in little known provincial and federal tax credits that provide a way to invest in your local community by investing in innovative new economies

We have three strategies that use these little-known provincial and federal tax incentives / deductions but we will share one of those ideas with you. Alberta and BC have done one thing right; they have created tax incentive plans to help create diversified economies by allowing residents to invest in their own economy.

Please take a look at the 2-minute video on our website, as it will explain how you can receive up to 80% ROI (based on 50% tax bracket) in Year 1 of your investment thanks to this two part tax strategy. If you live in Alberta or BC, if you want to invest in innovative local businesses, visit us at triviewcapital.com to see if you qualify.

Sincerely,

Craig Burrows President, CEO

Triview Capital

Blocking Pipelines is No Good For Climate Change

 

Mike makes the case that by opposing the Kinder Morgan pipeline, policies like the implementation of the carbon tax, the phase out of coal & emmissions cap on Oil Sands production are threatened with termination: 

….related from Michael: Norway’s Very Inconvenient Source of Wealth

climate-globe-2

 

 

 

Shattered XLE Collapses Into Seasonal Low

The smashed Stock Market, an $8 drop in Oil combined with a seasonality situation has created an exceptional opportunity. One look at the chart of the XLE Energy Select Sector Fund and you can see you’ll be buying low! Whether its a new bull market or not, Institutional Advisors sees an 8 week rally from a severly oversold situation. Take a look – Robert Zurrer for Money Talks:

We reported on the upside Exhaustion Alert in the big cap oils (XLE) on January 11th, anticipating a pullback into the normal seasonal low in February with the possibility of two legs to the downside. Prices continued higher for another ten days, but with bearish divergences in the money flow oscillators. Needless to say, the break has been more than normal. Downside Capitulation Alerts have been generated as of Friday. These follow a daily Sequential 9 Buy Setup. A 40% to 50% retracement of the decline, back to the 50-day moving averages within three to six weeks would be the normal action. 

chartworks 

Seasonally, the XLE tends to bottom around the 20th of February and rally for eight weeks (profitable 14 of the 18 years). The most reliable moves have been when the price has been oversold in the preceding weeks. This year clearly offers that set of circumstances. 

Opinions in this report are solely those of the author. The information herein was obtained from various sources; however, we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

BOB HOYE,

INSTITUTIONAL ADVISORS

EMAIL bhoye.institutionaladvisors@telus.net

WEBSITE www.institutionaladvisors.com