Entries Tagged as 'trade'

What does the new frontier of negative interest rates in the global arena mean for investors?

What does the new frontier of negative interest rates in the global arena mean for investors?

What does the new frontier of negative interest rates in the global arena mean for investors?

 

Cindy Yeap / The Edge Malaysia discusses “What does the new frontier of negative interest rates in the global arena mean for investors?”

“For RHB Research Institute executive chairman and chief economist Lim Chee Sing, NIRP “can only be seen as a temporary expedient to hold up financial markets”, albeit one that has little room to push for more economic growth in this relatively mature stage of the growth cycle.

“That means rising investment premiums and heightened market volatility will likely be the order of the day in the days ahead. Portfolio investors may have no choice but to build some degree of defensiveness into their portfolios to balance out the risks. This implies rising appetite for high-yield stocks,” Lim says.

“Even dividend stocks have caveats in the days ahead, largely due to their rich valuations vis-à-vis tougher conditions to grow at the same rate as before. For example, sin stocks might have to contend with higher taxes; the fees for telecommunications spectrum refarming have yet to be revealed; and consumer stocks have to contend with the possibility of a further tightening of consumer spending. Then, there is the higher labour cost.

“The focus should be on stocks with an improved business model, reasonable earnings visibility, strong cash flow, a dividend policy and, thus, sustainable dividend payments. Of course, one cannot ignore valuations but rich valuation stocks are still susceptible to a selldown should the global economy take a turn for the worse,” Lim adds.

“Gerald Ambrose, CEO of Aberdeen Islamic Asset Management Sdn Bhd, too, noted expensive valuations after a good run in recent years.

“We are keeping a close eye on notable high-yield companies, like the cellular phone companies, the brewers, tobacco companies and the REITs (real estate investment trusts). We’re currently about halfway though the 4Q2015 results season and to be honest, a lot of the better-managed companies have been able to find efficiencies to enable dividend payout to remain high. However, after outperforming for over a year, a lot of the high dividend yield companies are hardly cheap,” he says.”

BOTTOM LINE: Focus your strategy on yield and gold. Gold is an alternative when interest rates are negative adjusted for taxes and inflation.

Folks, It’s Happening All Over America!


Mover Mike Hit 2,000,000

After an incredible June, Mover Mike hit 2,000,000 page views. I have been blogging since 2004 and it is nice to see that more people are finding this blog. Sometimes, I have considered quitting, thinking why bother, no one reads me. However, conservative fiscally, Libertarian socially, this blog joins many others who don’t like the path the U.S. is on.

No longer can we discuss things rationally and heatedly.  Now it seems the play book says to ignore the message, savage the messenger. We are seeing that currently with Trump and we read that Hillary hasn’t answered the press questions in two weeks. AND…more and more people are considering leaving the country.

Mexico”sends” their unemployed to the U.S.. How long will 93,000,000 unemployed and under employed wait to move south? How long will the drought stricken  in the south west wait to move? What happens when the U.S. becomes like Greece and can’t feed the 43,000,000 on EBT?

Stay tuned, dear reader. I hope to cover it and provide some answers. Thanks for reading Mover Mike

The Next Currency Crisis Has Begun

According to Graham Summers of Phoenix Capital Research The Next Currency Crisis Has Begun. 

Stocks have been boring for months now. They’ve gone almost nowhere since the start of the year.
The REAL action is in the currency markets.
The biggest news is the breakdown of the Japanese Yen. Normally it’s a big deal if a currency breaks a trendline that is over five years long.
The Yen just broke a 30 year trendline.

Image

The significance of this cannot be overstated… one of the major world currencies has broken support dating back to the mid-80s. This sets the stage for a collapse to 60 if not 40 in the coming months.
The Yen collapse represents a 33%-50% currency collapse. It is nothing short of a hyperinflationary event.
The impact will be felt around the globe, most notably in Asia where other currencies will be in absolute chaos.
However, the Yen also is a major currency partner with the US Dollar and the Euro… and a Japanese currency collapse will be felt in those regions as well. Stocks will be the last asset class to “get it.”

The Next Recession Has Already Begun

The Next Recession Has Already Begun

The following is an excerpt from a recent issue of Private Wealth Advisory.

The official data is out and it shows that GDP collapsed 0.7% in the first quarter of 2015.

The financial world is shocked by this because:

1)   The drop occurred despite the Government massaging the heck out of the data to make it look better.

2)   The world has bought into the idea that the Fed can remove any and all recessions by printing money.

Regarding #1, the Government recently added a bunch of bogus measures to GDP such as intellectual property. How exactly you can accurately measure the value of intellectual property is beyond me. But then again, much of what the Government does in the name of “the better good” is beyond me as well.

Despite adding this and a slew of other accounting gimmicks, the economy collapsed 0.7% in the first quarter. This is shocking only to those who believe that official GDP is an accurate measure of economic growth.

Our readers have been well aware for some time that the GDP number is largely an accounting fiction meant to overstate growth. Indeed, if you strip out the various gimmicks employed by the BLS, you find that the year over year growth for GDP has been at levels usually associated with recessions for years.

Recessionary levels are circled in the chart below.

NOM GPD.png

Small wonder the “recovery” has felt so weak… the economy has been moving at pace usually associated with a contraction!

Emerging Markets

Emerging markets

Emerging markets

Wikipedia defines emerging markets as “The four largest emerging and developing economies by either nominal or PPP-adjusted GDP are the BRIC countries (Brazil, Russia, India and China). The next five largest markets are South Korea, Mexico,Indonesia, Turkey, and Saudi Arabia...”

Martin Armstrong warns, “The emerging markets have issued debt in dollars which is a currency they cannot print and do not control. This hard-currency debt has tripled in the last decade and is split between $3.1 trillion in bank loans and $2.6 trillion in bonds. This will ripple through the banks causing massive new losses just as the Cyprus banks held Greek debt. This time, it will be the debt of all emerging markets. We are looking at a drastic scale of the biggest cross-border lending sprees of the past two centuries.

“A large portion of this emerging market debt was taken out at real interest rates of 1% on the implicit assumption that the Fed would continue to flood the world with liquidity for years to come. This has made the emerging markets vast borrowers dollars so in a trading position they are “short dollars”. This is the greatest short-position on a currency on the boards and when the dollar RISES, they will face the margin call from Hell itself. This will set off another banking crisis for bankers always buy the high and sell the low. They have NEVER learned even once from any economic crisis.”

Read more at Coming Emerging Market Debt Meltdown

 

Putin Loses Control

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By , International Business Editor

Vladimir Putin has lost control of Russia’s economy and may be forced to impose Soviet-style exchange controls after “shock and awe” action by the central bank failed to stem the collapse of the ruble.

“The situation is critical,” said the central bank’s vice-chairman, Sergei Shvetsov. “What is happening is a nightmare that we could not even have imagined a year ago.”

The currency spiked from 71 to 98 against the euro yesterday (12/16) in the biggest one-day drop since the default crisis in 1998 as capital flight gathered pace, despite a drastic rise in interest rates to 17% the day before (12/15) intended to crush speculators and show resolve. It closed at 87, and at this writing today (12/17) is at 83.

Yields on two-year Russian bonds spiraled to 15.36%, while credit default swaps are pricing in a one-third chance of a sovereign default. The shares of Russia’s biggest lender, Sberbank, fell 18%.

Neil Shearing, from Capital Economics, said the spectacular failure of the rate shock may bring matters to a head. “If a rise of 650 basis points won’t do the job, we are near the end. That means stringent capital controls,” he said.

In Washington, the White House said it had no intention of easing pressure on Russia to halt the freefall. “It is President Putin’s decision to make. The aim is to sharpen the choice that he faces,” said White House spokesman Josh Earnest yesterday.

After years of bluster and suggestions by Mr. Putin that the US is a paper tiger, the Kremlin is now coming face to face with the cataclysmic consequences of what it has done by invading Ukraine and changing Europe’s borders by force.

Continue article…

Two Buddies

 

Laugh it up boys!

Laugh it up boys!

The mandate from the 2014 election doesn’t matter as long as these two are buddies.


How to Use CQG Q Trader

Trading with CQG Q

CQG Q

 

Have you ever watched poker on television? You always see the player that is the biggest risk takers win the big pot, and then walk away with the tournament championship. You decide that you can do that also. You play some hands, lose a bunch of money and do not understand what happened. Poker is not an easy game to play it involves several different levels of knowledge that you do not see on television. Some of the unseen information is experience accumulated by the players to help them make decisions to help them win the tournament. It takes a lot of time to figure out a strategy to win.

Building strategies is the key to developing a profitable method to trade the markets. It takes time and lots of information. It also takes the use of some gut instincts, and knowledge of the market place. Using the CQG Q Trader is a great way to build a profitable market strategy.

  • Exchanges

CQG is connected to multiple exchanges across the world, giving the trader an opportunity to trade on a variety of different exchanges. You will also have access to trading information that can help you see trends that are happening in the marketplace and adjust your strategy accordingly.

  • Features

CQG has outstanding tools that help you get key information on the market with the push of a button. Some of the features include price ladders, the ability to trade from charts, smart orders, routing, application, quote displays, studies, and charts. CQG features give you the chance to test different strategies by using back test trading systems.

  • Order entry

Trading can be very difficult that is why it is very important to get information immediately. CQG’s interfaces have several options that help you make decisions quickly, which is important during the trading day. The options that are available to use are the DOM Trader, Enhanced Quote Spreadsheet, Order desk, Order Ticket, SnapTrader, and Spreadsheet Trader.

  • Order type

CQG offers the some of the order types that other trading platforms offer, such as market, limit, stop, and stop limit. CQG also offers types of orders. Examples of these orders are; DOM-triggered setup, Iceberg, Trailing stop, bracket, study-following orders, Funari, and algorithmic. All of the other types have opted for the length of time that you want your order to last. The period of time can include the whole day, or you can give the order a time to begin and end during that trading day.

  • Pricing

CQG is a well-priced trading platform, which allows you to place an unlimited amount of trade during the month for one flat fee. You can pay twenty-five hundred dollars a month, this helps to maintain your order structure and it gives you the flexibility that CQG allows you to have as a trader. The first option may be too much money to invest in the software, but there is a lower cost option. For less than six-hundred dollars, you can get some of the analysis to help you with your trading day. CQG Q trader offers you many of the features the full scale CQG offers for only $40 per month.

  • Platform

CQG has three different types of trading platforms for you to choose from to work with. CQG Integrated Client allows you to trade on a professional level with such features such as market data, analytics, and order routing. CQG Q Trader gives you powerful tools that allow you to monitor and trade in the market place. CQG Trader is a great option if you do not want to use all the technical tools that some people use.

  • Partners

CQG’s gateway services give you the opportunity to connect with several electronic exchanges. Some of the forty exchanges that are available through CQG are Bell Potter, Citi, Dorman Trading, Crossland LLC, J.P. Morgan, Rosenthal Collins Group, LLC, Vision, Financial Markets, and several other exchanges, giving you plenty of choices. CQG is looking to expand the list of their exchanges, if you have any recommendations they will add that exchange to their list.

By using CQG Q Trader you can build a profitable security strategy with a minimal amount of risk. The best part about trading securities is that you have all the information given to you, and you do not have to depend on luck like you do with poker.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
About the author: Ilan Levy-Mayer is the VP of Cannon Trading Co, Inc. and CEO of LEVEX Capital Management. He has developed many different systems and has the experience from the design stage, execution stage, technology aspects; assisting clients evaluate systems and much more.

LOST Defeated Again!

Back in January, 2005 I wrote about how George Bush supported the Law Of The Sea Treaty (LOST).
LOST is “a treaty that gives power to the UN over the seafloor to the detriment of our interests. Back then Sen. Lugar questioned Condoleeza Rice about LOST. Rice responded that the president “certainly would like to see it pass as soon as possible,” saying LOST “serves our national security interests, serves our economic interests. We very much want to see it go into force.”

I quoted “Insight On The News”back then:

As worded, LOST would deny the United States the right to intercept terrorist vessels or proliferators, according to Dr. Peter Leitner. The President’s Proliferation Security Initiative, designed to battle proliferation of weapons of mass destruction with as little effect on commerce as possible, would be illegal under the treaty. “This U.S.-led, multinational program of high-seas interdiction and vessel boarding is barred by the Law of the Sea Treaty yet it is our overriding national-security interest to execute,” Leitner said. “Ratification of the treaty would effectively gut our ability to intercept the vessels of terrorists or hostile foreign governments even if they were transporting nuclear weapons. We must ensure that we are not binding the government of the United States to a legal regime that makes us more vulnerable and trades the lives of our innocent civilians for the sake of participating in yet another unnecessary treaty.”

Even worse, according to Leitner, is what he calls “the creation of yet another international court where the United States or our citizens can be dragged before politically motivated jurists to adjudicate and set penalties.”

The treaty imposes limitations “on measures we might take to ensure our national security and homeland defense. If, for instance, foreign vessels operating on the high seas do not fit into one of three categories (i.e., they are engaged in piracy, flying no flag or transmitting radio broadcasts), LOST would prohibit U.S. Navy or Coast Guard vessels from intercepting, searching or seizing them,” Gaffney testified.

In February, 2005 I quoted Phyllis Schlafly about the dangers LOST poses.

In September, 2008, I wondered how Sarah Palin would react when John McCain announces his support of LOST.

The treaty keeps being brought up and today we learned that once again it’s passage was defeated. “A treaty governing the high seas is all but dead in the Senate as Sens. Rob Portman (R-Ohio), Kelly Ayotte (R-N.H.) and Johnny Isakson (R-Ga.) announced their opposition giving conservative foes the necessary votes to scuttle the pact.” The treaty needs a two-thirds approval to pass.

The best chance for passage is gone with the House and Senate expected to be in Republican hands come November, but looking back, even Republicans in charge have wanted to restrict our freedom. Keep fighting to prevent passage of LOST.


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