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The 'Smart Money' Is Pouring Billions Into The 'Next China'

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By: Bristol Voss of Street Authority

Did you miss out on China's unprecedented growth?

In the past decade and a half, China has sailed past Germany, France, Great Britain and Japan before settling in as the world's second-largest economy behind the United States.

If you missed out on that growth, were you put off from investing while many experts dithered about the reliability of official Chinese government data?

It would have been nearly impossible for an individual investor to get in on China in 1998. The Xinhua China 25 Index (NYSE: FXI) made its debut in 2004 as the first Chinese exchange-traded fund (ETF), but it has had considerable downsides, including its fees and a high concentration in the financial space. Continue reading "The 'Smart Money' Is Pouring Billions Into The 'Next China'" →

The Results Are (Almost) In for Rare Earth Competitors

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The Metals Report: Alex, what is your overview of the rare earth element (REE) space?

Alex Knox: The highlight is that two large deposits of light rare earth elements (LREEs) are coming into production: Molycorp Inc.'s (MCP:NYSE) Mountain Pass and Lynas Corp.'s (LYC:ASX) Mt. Weld deposit. The considerable increase in LREE production has eliminated the need for any market niche for these types of deposits, at least for the short-term.

I see a dramatic need for development of heavy rare earth element (HREE) deposits in the western world, now that China's crackdown on illegal mining has presumably cut into its production of HREEs. A number of companies have reached pre-feasibility or preliminary economic assessment (PEA), and one already has a feasibility study. Overall, I believe this space offers the most potential growth and the most potential to add new deposits.

TMR: Can investors make money in REEs? Continue reading "The Results Are (Almost) In for Rare Earth Competitors" →

The 3 Essential Parts of an Elliott Wave Trade - Part 2

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By Elliott Wave International

Three steps may sound simple enough. Yet if you have any experience trading, you know that nothing about trading is easy. Education is imperative. So is preparation.

Senior Analyst Jeffrey Kennedy knows that it takes skill, discipline and courage to execute a successful trade. His new book, Visual Guide to Elliott Wave Trading (coauthored with Wayne Gorman), picks up where Frost and Prechter's classic textbook Elliott Wave Principle leaves off: It gives you the perfect blend of traditional textbook analysis and real-world application.

According to Kennedy, there are three key components of a successful trade: Continue reading "The 3 Essential Parts of an Elliott Wave Trade - Part 2" →

Rates of Interest

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As the 10-year to T-bill yield curve chart makes clear, we are not in Kansas anymore.  We are in Wonderland and as you can see, in Wonderland interest rates and their interrelationships are at the center of events.

tnx.irx

Last week the bullish case reasserted itself across financial markets, but to argue that policy makers are doing anything better than pumping future distortions into the system is crazy talk along the lines of 'the world is flat' or… ‘the above chart is flat’.

Last week Ben Bernanke clarified for people that yes indeed the Fed will eventually taper its QE bond buying operation while making clear that Zero Interest Rate Policy (ZIRP) will remain as is.  I think that the average market participant is starting to settle in and get comfortable with the terms of our 'Taper to Carry'(T2C) plan, which sees the banks benefiting from borrowing short and lending longer. Continue reading "Rates of Interest" →

Think It's Time To Get Back Into Gold? Think Again

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By: Adam Fischbaum of Street Authority

I love James Bond flicks, preferably from the Sean Connery era. "Goldfinger" is one of my favorites. I am often reminded by the classic scene in which a captive James Bond is seconds away from being charred by a laser.

James Bond: "Do you expect me to talk?"

Goldfinger: "No, Mr. Bond -- I expect you to die!"

Quintessential 007: Ridiculous stunts and jams, sports cars, beautiful women and a dastardly, almost clownish villain -- in this case, one whose plan was to poison the U.S. gold supply at Fort Knox to create global financial chaos. His endgame? Simply to drive up the value of his own gold holdings. Continue reading "Think It's Time To Get Back Into Gold? Think Again" →