Massive Amounts Of Money Are Leaving The US For Europe

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


SPDR S&P 500 ETF (SPY) is one of, if not the largest ETF's based on net asset value, which currently sits at $177 billion. That should though come as no surprise since the ETF mimics the S&P 500 and is quite frankly the easiest way for investors to diversify their portfolio in stocks, while taking on no more risk than necessary. I often recommended this to others and refer to it as the best one stop shop for investors, regardless of their goals.

But recently, we have been seeing large amounts of money moving out of SPY. January 20th nearly $4 billion was pulled out, during two days, January 28th and 29th, more than $5 billion was removed, $2.4 billion on February 20th, another $2.3 billion on March 20th, another $9 billion from March 26th to the 30th, April 20th another $4 billion, from April 28th to May 1st $8 billion, and May 19th $3.3 billion was pulled out. Continue reading "Massive Amounts Of Money Are Leaving The US For Europe" →

Surprise, Greece Has No Money

Posted on by The INO.com Team

It just seems to this observer that the Greek kabuki dance is never ending. How can banks keep lending money to a country that is insolvent? That seems a little backward and just stupid to me. What do you think of the situation in Greece?

Here's the reality of the situation, Greece is going to default, the bankers may as well get ready to write off those loans as the money is not coming back. The next question is, whose next, Portugal, Spain or Italy? The next buzzword that is going to come out of all this is contagion. I think when Greece exits the eurozone it will be good for the euro longer-term. Think of it like when a company announces bad earnings and fires the CEO. The stock price has anticipated and discounted all the bad news and for the most part things get better over time for that company. The euro is the same way as pretty much all the bad news is out, except the actual exit of Greece from the euro.

Sooner or later it's going to come to crunch time and time is getting short. Angela Merkel and Germany are going to have to swallow their pride and make some important decisions very soon.

So onto the only economy that seems to be working and that is the US. Today I'm are going to be looking at the major indices to see if they are beginning to tire or getting ready for another upward push.

I'm also going to be looking at three stocks today. Continue reading "Surprise, Greece Has No Money" →

Buy Gold For Euros, Sell Copper For Dollars

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold/EUR Is A Buy

XAUUSD/EURUSD
Chart courtesy of Tradingview.com

In my January post, I gave the recommendation to buy Gold versus the EUR at 1022 EUR, with a target for inverse Head and Shoulders pattern at 1208 EUR. As seen in the above monthly Gold/EUR chart, the target hasn't been reached so far, but the maximum advance of 138 EUR (14% between 1160 and 1022 EUR) was significant. Today I will update you on that idea with a new pattern that I found on the chart.

For 10 years, the Gold/EUR has been in a long-running uptrend (highlighted in green). The price had been elevating all the way up from 2005 charting clear zigzags and peaked only in 2012 at 1384 EUR level. Then we saw almost a 40% sharp fall from 1384 down to 856 EUR minimum. At the end of 2013, Gold touched the downside of the trend and one month later, at the start of 2014, the market rebounded from the support and found resistance at the magic 1000 EUR level where the price bounced off into a sideways consolidation between 900 and 1000 EUR. Continue reading "Buy Gold For Euros, Sell Copper For Dollars" →

The Case Of The Vanishing Money And Attempted Murder Of U.S. Coal

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


Don’t look now! It’s a frightening scenario for investors with a stake in US coal.

Even as we speak, money is disintegrating. No one seems safe. It’s like a mass murderer is on the loose. Investors in both stocks and bonds of US coal companies are suffering profusely. Someone please! Stop the bleeding!

On Tuesday, Bloomberg reported this horrifying reality: “Two months after Peabody Energy Corp. raised $1 billion from the junk-bond market, buyers have lost 18 percent in market value as a slump in coal prices worsened.”

Bonds! People who bought Peabody’s 10% bonds have lost 18%! Continue reading "The Case Of The Vanishing Money And Attempted Murder Of U.S. Coal" →