A Word From Bob

As Seen & Heard

Contact Us

rss

Invest Yourself

The FREE Investment Newsletter That Really Works!

Insiders Club - 10.22.2014 Bookmark

 

10.22.2014


Well that was fun. Just because the Central banks jawboned about possibly extending QE, we've rallied hundreds of points. It wasn't because we opened more small businesses, or cut taxes or cured cancer...nope. Just the hint that the Fed punchbowl might get refilled fired them up.

But now the ECB has denied that it is going to go on a bond buying spree twice already

10.19.2014 Financial Intelligence Report Bookmark

Will They Do More QE?

Pull up a chair and let’s chat folks.  This is going to be an interesting letter on a lot of levels, so let’s get started.

Everyone that has any interest in finance knows that the Federal Reserve has had a program in place called Quantitative Easing for the past 5 years. For those of you who don’t understand what it is, the basics are that the Fed’s have printed up money and then used that money to buy Treasuries from the Government and to soak up toxic assets like bad mortgages from the banks. In doing so, it has had the effect of constantly lowering interest rates, since they don’t have to raise rates to “lure” folks into buying the T bills. The Fed’s would buy them at any price, and any rate of return.

But the offshoot of QE was that because they were buying up toxic crap from the banks, AND because Treasuries are also bought from the “primary dealers” ( the big banks) the banks got tons and tons of money to go play cowboy in the asset markets. With virtually zero percent money for the big companies to borrow and buy back their own stock, and all the bank money sloshing around, we’ve had the best bull market that fake money can buy. Stocks are up gigantically since the beginning of the program.

Insiders Club - 10.17.2014 Bookmark

10.17.2014

The wild week continues....

Yesterday the market traded in a wild range of 276 points. From the lows to the highs, we made wild massive swings. At the close, things were relatively flat.

Last night the futures were pretty much flat all evening until about 30 minutes after Europe opened. Then all hell broke loose. Why? One of the ECB members came out and said that  QE would start within days to buy up assets.  Well that's all it took to fire up all the robot computers on earth. Europe started to soar, and our futures here in the states went from flat to up 25 on the S&P.

10.16.2014 More Selling?? Bookmark

Last night in the Newsletter we suggested that the selling wasn't over. We felt that we'd be going down again. BUT we felt that would happen AFTER a bounce off yesterday's lows. In other words, we figured we'd go green for a couple days and then see the energy fade out again and we'd go down and test the lows. But this morning at 7 am the futures are down 150 points on the DOW and the S&P is off about 20.

Insiders Club - 10.16.2014 Bookmark

10.16.2014

Well here we go again?

I'm writing this at 7 am, as I have to get to the studio for my radio interview at 9. Well, what I see is red across the world. This is really interesting.

Last night I took a peek at the futures right around 11 pm and they were slightly green. So, as I went to bed, it seemed that we'd probably wake up to green futures and a bit of a rebound for the open. Instead I wake up and the world is blood red. Europe is red across the board and our futures are in the toilet. We've got the DOW off 180, the S&P down 25.

10.15.2014 Financial Intelligence Report Bookmark

Fake Facts You Believe

One of the problems you face when you write a newsletter that goes out to thousands of folks, is that often the things you say…are diametrically opposed to what people have taken as fact for years.  Then they have to try and figure out if I’m simply nuts, or maybe realize that they’ve been shoveled a bucket of horse hockey all those years.  It causes stress I’m sure.

For instance we all know that Eve ate an apple in the Garden of Eden right? Well not so fast. She ate from the fruit of the tree of knowledge of good and evil. Not once is it mentioned in the Bible that it was an apple. It probably wasn’t. Yet it’s taken as a generalized fact that she ate an apple.

Insiders Club - 10.14.2014 Bookmark

10.14.2014

Good morning everyone, welcome to another day in Bizzaro-land.

I'm sure you all know what happened yesterday. The market was holding up, trying to defend the "flat line" for most of the day. Then in the last hour the wheels fell off. Helping the sell off was "someone" who decided they needed out in a big way, as 4,492 S&P E-mini futures were dumped in one tick. I haven't done the math but that comes in somewhere around 700 million worth of stock.

10.12.2014 Financial Intelligence Report Bookmark

Earnings Upon Us…

Four times a year, most companies produce their economic report for the previous quarter of business. This isn’t something new, they’ve been doing it since the idea of a structured company first began. But like most things, they’ve “morphed” into something much different than the standards set so many years ago. I’m not shy in saying that a very competent accountant overseeing companies in 1920 would have absolutely no clue how to figure out what the hell any modern company was even talking about.

So when these companies start releasing their earnings in bulk next week, just what are we actually hearing them tell us? Sometimes it isn’t as easy as just saying “oh that’s their earnings based on sales versus expenses”.  Thus I think a bit of history lesson needs to be taught here….

10.10.2014 Friday At Last! Bookmark

If you trace enough Friday's you see that the market often "magically levitates" into the weekend. that's by design folks, as the powers that be like to send Joey Sixpack into the weekend remembering "green" so he feels good and spends money he doesn't have on things he doesn't need

Insiders Club - 10.7.2014 Bookmark

10.7.2014

Good morning all, welcome to Tuesday, and more twists and turns.

You all know how the script has been playing out. On Friday, they jammed the market insanely higher on an absolutely putrid jobs report. They had set it up the day before, reversing a 130 point dip, to end the day perfectly flat. So, for all intents it "looked" like they were manufacturing a perfect "V" bounce and we'd be seeing the push back to the highs again. That's what they've done over and over for the last 5 years. We'd get a 4-5% correction, and then they'd come in an jam us to all time new highs.

But we weren't convinced. We said it was surely possible that they'd pull it off, because one thing this criminal market has going for it is a Fed and a Government so corrupt they have no problems "supporting" stock prices. Yet we had our doubts.

Social Media

Bob Recommends