Daily Video Update: The biggest job killer is …

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 8th of October.

I've been thinking about this for a while and decided today was the perfect day to put my thoughts in writing...

I think the Internet is a job killer and not a job creator.

Here are my reasons why:

A relatively small number of staff can run a multibillion dollar company. For example, FaceBook only has 3,000 employees. Compare that to General Motors, who currently employs 202,000 folks.

Amazon, another name that is ubiquitous on the internet, has only 69,100 employees. Now compare that to traditional retailers that have millions of employees in malls across the country. More and more Americans are turning to to shop online because of its convenience and that could be the demise of many jobs in traditional shopping outlets. For example, Circuit City could not complete in the new world and quickly fell prey to the Internet. Is Best Buy the next company to throw in the towel?

Apple, the most valuable company in the world, even with its retail outlets, still only employs less than 65,000 Americans. However, Apple in China through a company called Foxconn has over 400,000 Chinese working to make iPhones, iPads, and practically everything "i" for Apple. You can only wonder what kind of impact almost half a million manufacturing jobs would have in the US. Think about what it could do for our economy.

America has to rethink, reset, readjust and retool if it is going to get serious about creating jobs in the new global internet world. Countries, including the United States, cannot just rely on past successes. History has proven time and time again that a country resting on its laurels soon becomes a country in trouble. Continue reading "Daily Video Update: The biggest job killer is …"

REE Stocks Are Down but Not Out: Siddharth Rajeev

The Critical Metals Report: Siddharth, despite the poor price performance of critical metals equities since the fall of 2011, most of the prices for the underlying commodities have indicated relatively stable demand. What's your view?

Siddharth Rajeev: It's tough to generalize on the mining sector because each critical element has its own supply and demand drivers. We have a positive outlook on a few elements; this is not so with others. However, it's true that commodity prices have not dropped as much as equities. If you look at industry data, you can see that mining companies are in a much better position now compared to four or five years ago. For example, the margins, return on equity and balance sheets of gold and copper producers have improved significantly over the past five years. Despite that, why is the TSX Venture, 50% of which is comprised of mining companies, down by 60%? I believe that the market is overreacting, just as it did in 2008. Therefore, we believe there is a good opportunity to buy quality assets at this time at cheap valuations. Continue reading "REE Stocks Are Down but Not Out: Siddharth Rajeev"

Deepwater Service Stocks Are Tapping the Supercycle Sweet Spot: Elliott Gue

The Energy Report: A lot has happened in the energy markets since your last interview. What are the most significant changes in the space?

Elliott Gue: The Gulf oil spill in May 2010 and the Fukushima event in March 2011 were the two most pivotal events of the past two years. The repercussions of the Gulf spill extended for over a year. Fukushima dramatically changed the policy toward nuclear energy in Japan and in Germany and caused a surge in global natural gas prices due to increased Japanese demand, Japan having suddenly lost about 30% of its power. Japan has since built new natural gas plants, which are the only plants that can be brought onstream very quickly to generate large amounts of power. Continue reading "Deepwater Service Stocks Are Tapping the Supercycle Sweet Spot: Elliott Gue"

The Solar Silver Thrust

By Jeff Clark, BIG GOLD

In early July, Japan set a premium price for solar energy that was three times the rate of conventional power. This meant utility companies would be paid three times more for electricity sourced from solar. It's widely expected that the premium will ignite the use of solar power – and solar uses a lot of silver.

Silver Demand from PV Panels

As you may know, silver is used in photovoltaic (PV) technology to generate solar power. A typical solar panel uses a fair amount of the metal – roughly two-thirds of an ounce (20 grams). To put that in perspective, a cellphone contains around 200 to 300 milligrams (a milligram weighs about as much as a grain of sand). A laptop contains 750 milligrams to 1.25 grams. Continue reading "The Solar Silver Thrust"

Daily Video Update: Don't fight the FED

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 5th of October.

Don't fight the FED, why? Because the deck is stacked against you and the FED holds all the cards.

Today we received a major reversal signal based on our Trade Triangle technology that I will share with you in today's video.

Did you vote in our poll on the debate? Continue reading "Daily Video Update: Don't fight the FED"