Forget OPEC, North American Energy Plays Bring Profits Home

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The Energy Report: Byron, welcome. You recently attended the Platts Conference in London, which addressed shifting energy trade patterns in light of growing U.S. export prospects and dwindling exports from South America and Africa. Has OPEC's role diminished?

Byron King: The short answer is yes. OPEC is struggling right now. The Middle East, the West African producers and Venezuela are struggling. The West African players and Venezuela have seen exports to the U.S. decline dramatically. In countries like Algeria, oil exports to the U.S. are essentially zero, while Nigeria's exports to the U.S. are way down. The oil these countries export tends to be the lighter, sweeter crude, which happens to be the product that is increasing in production in the U.S. through fracking.

The east-to-west trade pattern for oil imports to the U.S. has essentially gone away. This does not mean that the oil goes away. It means these countries have to find new markets for their oil which they are doing, in India and the Far East. But that disrupts trade patterns as well. Imports from the Middle East to the U.S. are falling as well. These barrels tend to be the heavier, sourer crude that U.S. refineries are geared to process. Continue reading "Forget OPEC, North American Energy Plays Bring Profits Home" →

QE 'Taper' to T Bond 'Carry Trade'

Posted on by The INO.com Team

The following is the opening segment to this week’s premium letter, NFTRH 242.  The balance of #242 went on to discuss the technical status of US and global stock markets, key commodities, the current status of ‘inflation expectations’, precious metals and currencies; all in detail.

Taper to Carry

Last week we introduced the theoretical 'taper to carry' scenario whereby the Federal Reserve would indeed 'have the balls' to begin the end of traditional QE and transition the inflation via a new set of mechanics.  Mind you, we still get inflation under this scenario, but it would be less stealth and more honest and obvious to the public.  Here are the theoretical components of the play… Continue reading "QE 'Taper' to T Bond 'Carry Trade'" →

Ride 2 Recovery

Posted on by The INO.com Team

One on the really great things about working at INO.com and MarketClub, is I get to work with some very smart and outstanding people.

I invited Bob Fladung, now our Director of Advertising, to join our company on July 5th, 2000 and he has been with our company for over 13 years. Even though he had no previous online experience, I felt Bob would be a great addition to our growing company. Because of his fine work, by September 10th, 2001 Bob was promoted to our fast growing advertising department. Little did any of us know what was going to happen the next day. It was a tragedy first and foremost for the families who lost loved ones in that terrible terrorist attack.

Little did Bob know at the time, but the advertising market came to a screeching halt. Bob did not complain as he watched his income get cut in half, nor did he point a finger at others, he simply worked harder and did not let up until revenues were once again growing at a nice clip. Bob is a special guy in our company and an outstanding human being.

Just recently, Bob took part in "Ride2Recovery" - an organization that was founded to enhance the lives of our country's wounded veterans with Mental and Physical Rehabilitation Programs featuring cycling as the core activity.

On Memorial Day, Bob participated in (bicycled) in the "Ride2Recovery" from Washington DC to Manassas, VA. A few days later, he again took part in the "Ride2Recovery" from Williamsburg, VA to Virginia Beach. Bob wanted to do this to show support for the men and women who defend our everyday freedoms.

Bob with some of his fellow riders

That's Bob in the far right of the picture with some of his fellow riders.

This is what Bob shared with me about his "Ride2Recovery" experience.

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"Adam,

Having the opportunity to ride with these hero's was an amazing and inspirational experience... one that I'll never forget. I'm awed at the perseverance of our military personnel.

Also, witnessing the outpouring of support from people we encountered along the ride was uplifting and emotional - elementary school kids lined up along the school fence, honking horns, flag waving, high fives, and cheering. It's hard to put in words, but something that I hope to do again in the very near future.

Thanks,
Bob"

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This blog posting is a tribute to our military personnel. Everyone here at INO.com and MarketClub, salute you, for your outstanding character and the sacrifices you make to keep our country safe and protect our freedoms.

To learn more about Ride2Recovery or to donate:
Ride 2 Recovery
Phone: (818) 888-7091

Thank you,

Adam Hewison
On behalf of everyone at INO.com and MarketClub.

Japanese disappointment weighs on global markets

Posted on by The INO.com Team

Disappointment that the Bank of Japan did not unveil more measures to boost the economy as well as uncertainty over the course of U.S. monetary policy weighed hard on global markets Tuesday.

There had been expectations that the Bank of Japan, which started a big monetary stimulus this year to get the world's number 3 economy out of a two-decade stagnation, would announce new measures to ease volatility in the Japanese bond market. Instead the bank's policy board merely upgraded its economic assessment.

The disappointment was enough to send Japan's Nikkei stock index down 1.5 percent to close at 13,317.62. However, the retreat was modest in light of the previous day's 4.9 percent advance following an upward revision of first-quarter economic data. In tandem with the fall in equities, the yen made big gains _ the dollar was down 2 percent to 96.87 yen.

"The decision to hold steady prompted a sharp jump in the yen, and is also one factor contributing to weakness in global equities," said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank. Continue reading "Japanese disappointment weighs on global markets" →

Keeping Stakes Small: How Some Companies Are Navigating the Gold Market

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The Gold Report: Coeur d'Alene Mines Corp. (CDM:TSX; CDE:NYSE) recently acquired Orko SilverCorp. for cash and shares. What should investors pay attention to in that deal?

Keith Phillips: The deal involved La Preciosa, a silver asset controlled by Orko, in an attractive jurisdiction in Mexico. From an investment banking perspective, seeing two different, quality companies competing for a junior mining asset in an environment where people thought the merger and acquisition (MA) business was dead was encouraging. First Majestic Silver Corp. (FR:TSX; AG:NYSE; FMV:FSE) made an initial bid for Orko, and Coeur d'Alene was the successful bidder.

TGR: Are high-quality silver assets more likely to be targets than similarly valued gold assets in this market? Continue reading "Keeping Stakes Small: How Some Companies Are Navigating the Gold Market" →