Bruno del Ama: Do ETFs Offer Value for MLPs?

The Energy Report: Bruno, since Global X Funds brought its first exchange-traded fund (ETF) to market in 2009, you have added another 30, the latest being the Global X MLP ETF (MLPA:NYSE). What is the appetite among investors for ETFs, and specifically those featuring master limited partnerships (MLPs)?

Bruno del Ama: Investors continue to migrate to the ETF asset class, and we are big fans of energy MLPs. Energy transportation is an infrastructure play with a couple of benefits. First, it provides significant diversification to complement investors' portfolios; second, it provides income in a low-interest rate environment.

ETFs are an innovation in the MLP asset class. We at Global X focus on asset classes where we are the first provider of a particular ETF. In our last interview, for example, we talked about our uranium ETF, which provides focused exposure to that market in a way that did not exist before. Innovation is in our DNA. Continue reading "Bruno del Ama: Do ETFs Offer Value for MLPs?"

When Greg McCoach Picks Mining Stocks, It's Location, Location, Location

The Gold Report: When we last spoke in February, you were predicting a new round of quantitative easing (QE), which we've been seeing the last few weeks. Where do you think this is all going to end up?

Greg McCoach: The latest QE3 is open-ended, allowing the Federal Reserve to create money every month, indefinitely. QE3 was announced just a few weeks ago and already there is talk about QE4. So, in my opinion, this is the death spiral of the U.S. dollar.

The same thing is going on in Europe and Japan. It's very troubling and, in my opinion, totally unsustainable. But, trying to predict a timeline for the ultimate demise is almost impossible. This stuff could last another couple of years. Adding in the derivative problems on top of all this debt, it's just sheer insanity. So, where is gold going? It's going way higher because this is the ultimate dynamic that will guide the investment world for the coming years.

TGR: Is there any realistic solution, or are they just getting us deeper into the hole, and ultimately everything is just going to cave in on top of us?

"At some point I know gold and silver prices are going to go way higher than where they are now."

GM: The days of being able to fix this are long past. I had a chance conversation with a U.S. senator and, when I asked him about the debts and deficit spending, he admitted that everybody in Washington and New York knows that there's no possible way to pay this back. So, essentially all the politicians are hoping it doesn't blow up on their watch. Continue reading "When Greg McCoach Picks Mining Stocks, It's Location, Location, Location"

Casey Analyst Forecasts Explosive Biotech Growth

The Life Sciences Report: At Casey Research's "Navigating the Politicized Economy" summit, you talked about the difference between the speed of science and the speed of technology, and how quickly the time to market and cost of products in the life sciences space is decreasing. Can you provide some examples?

Alex Daley: Many technologies, like the touch-screen tablets and smartphones that now dominate the market, seem to come out of nowhere, perpetuating the myth of technology as almost magical. But you only have to look as far as the as-yet-unfulfilled promises of recent years to see the slow development curve that leads to explosive growth. This has been most noticeable in the advent of genetic medicine.

We all remember the sequencing of the human genome as a scientific milestone. Announced in 2000, just at the turn of the millennium, it was followed by much media fanfare about the dawn of genetic medicine. Every untreatable disease was going to be cured. Every person was going to receive medicine tailored to his or her unique makeup. Continue reading "Casey Analyst Forecasts Explosive Biotech Growth"

John Williams on Lies, Damned Lies and the 7.8% Unemployment Rate

The Gold Report: John, as Mark Twain famously quipped, "There are three kinds of lies: lies, damned lies and statistics." The Bureau of Labor Statistics (BLS) just came out with new jobs numbers that show the country added 114,000 jobs since September and the unemployment rate dropped to 7.8%, down from 8.1% in August. On Shadowstats.com, you argue that the numbers are wrong and pointed to politics as a possible reason for the incorrect figures. Are unemployment statistics being manipulated and if so how?

John Williams: I normally put out a commentary on the numbers, and, in this one, I raised the possibility of politics as a factor. The problem is very serious misreporting of the numbers and the result is what appears to be a bogus unemployment rate. The BLS reported a drop in the unemployment rate from 8.1% to 7.8%, three-tenths of a percentage point, which runs counter to what is being experienced in the marketplace.

What few people realize is that the headline unemployment rate is calculated each month using a unique set of seasonal adjustments. The August unemployment rate, which was 8.1%, was calculated using what BLS calls a "concurrent seasonal factor adjustment." Each month the agency recalculates the series to adjust for regular seasonal patterns tied to the school year or holiday shopping season or whatever is considered relevant. The next month, it does the same thing using another set of seasonal factors. Rather than publish a number that's consistent with the prior month's estimate, it recalculates everything, including the previous month, but it doesn't publish the revised number from the previous month. Continue reading "John Williams on Lies, Damned Lies and the 7.8% Unemployment Rate"

Brock Salier Unlocks the Secrets of Gold Miner Valuations

The Gold Report: Brock, your research suggests that the production margins of gold companies are near all-time highs. Why has that not translated to share price appreciation?

Brock Salier: The weak equity markets play a role in the disconnect between gold prices and gold equities, but a lot has to do with maturing gold assets.

A lot of gold mines were funded between 2007 and 2009 and commissioned between 2008 and 2010. Most companies typically mine above their reserve grade for the first one to three years to speed capital and debt repayments. But, if they have not found an expansion and completed a feasibility study, or if they lack a new mine to develop, that grade has to fall. As production falls, cost rises and share prices legitimately fall along with profits.

TGR: Can you go into a bit more detail about that concept, which is known as "high grading?" Continue reading "Brock Salier Unlocks the Secrets of Gold Miner Valuations"