The 'Helicopter Economics
Investing Guide' is meant to
help educate people on how
to make profitable investing
choices in the current
economic environment. We
have coined this term to
describe the current monetary
and fiscal policies of the U.S.
government, which involve
unprecedented money
printing. This is the official
blog of the New York Investing
meetup.
© 2010 realefinancemedia.corp - all rights reserved
realefinance.on the money
bulls and bears trampling your financial plans...
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Stocks Continue Volatile Trading--Daryl Montgomery
05/27/2010
While day traders love it, volatility is never a good sign for investors.
Money is made by following the trends and when wild swings up and
down occur, there usually is no trend. Even if one is beginning, it's hard to
discern....read article
Montgomery--05/28/2010
The U.S. markets are trading like some highly volatile emerging market, just
as they did during the Credit Crisis in 2008. Yesterday, the move was up
with the small cap Russell 2000 gaining 4.2%, Nasdaq 3.6%, the S&P 500
3.2% and the Dow 2.9%.....read article
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Montgomery --05/29/10
Bull markets usually go up the first four trading days of the month. After
giving a strong negative signal in May, investors should be watching this
indicator in the early days of June. A second negative signal would be a
confirmation that a new bear market has begun...read article
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June Begins With Continued Market Weakness--Daryl
Montgomery--06/02/2010
After a sharp drop on the open, U.S. stocks mounted a rally and
bear-trading pattern, clocked the rally however. Small caps were hit
particularly hard.....read article
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Some Curiosities in Wednesday's Market Rally--Daryl
Montgomery--06/03/2010
U.S. stocks had a big rally yesterday with a surge starting at
approximately 2:20PM New York time. This rally was counter to the
direction of the news flow and had many of the earmarks of central bank
intervention.
Central banks will pump liquidity into the global financial system to prop
it up at key points (informed cynics would use the word manipulate and
might cite the U.S. Plunge Protection Team as the source of these
activities).....read article
First of the Month Indicator Gives Bear Market
Signal--Daryl Montgomery--06/04/2010
It was a horrendous day in the markets on Friday June 4th. Trouble began
when the euro broke support and selling then spread from Europe to
North America. A disappointing U.S. jobs report added to the downward
pressure and stocks sank. The small cap Russell 2000 had a mini-crash. The
first four trading days of the month were down for the second month in a
row, indicating we have established a bear market trading pattern.
....read article
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Markets Trading Like They Did During Credit Crisis--Daryl
Montgomery--06/07/2010
Stocks are selling off globally. Commodities are down, but gold is holding
up the best. Money is pouring into the perceived safe havens, the U.S.
dollar and treasuries. Is it the late fall of 2008 or late spring of 2010?
Without further information, you can't answer that question. There is a
global financial crisis occurring now because of the problems with the
euro. There was a global financial crisis in 2008 because of the collapse of
the prices of derivatives related to subprime mortgages.....read article
Market Sells Off Even Though Bernanke Is Bullish--Daryl
Montgomery--06/08/2010
Fed Chair Ben Bernanke stated last night that he is 'hopeful' the U.S.
economy will not fall into a double dip recession. After a tremendous
drubbing on Friday, stocks somehow managed to sell down to even
lower levels yesterday. They are down again this morning following
Bernanke's comments - a fitting response to his forecasting acumen.
Few people in the United States seem to be as oblivious to the condition
of the American economy as is the guy who is in charge of the Federal
Reserve. Bernanke notoriously stated that subprime borrowing wouldn't
cause any problems only weeks before it blew up into the biggest
financial crisis the world has ever seen. . read article
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Bernanke Testimony Indicates Fed Still in Denial--Daryl
Montgomery--06/09/2010
Fed Chair Ben Bernanke testified on Capitol Hill today and didn't
disappoint. As usual, his lack of insight into the true state of the U.S.
economy boggles the mind.
The key takeaway from Bernanke's remarks is that the U.S. economy is
strong enough to withstand the fiscal tightening ahead. Bernanke then
promptly undermined this claim by admitting that the housing market
has "firmed only a little" since mid-2009 and that it will take a long time
before 8.5 million jobs lost during the Credit Crisis will be restored.read
article
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A New Theory of Sudden Hyperinflation Daryl
Montgomery--06/10/2010
While everyone acknowledges that governments are printing and
printing excess amounts of new money, more market observers are
currently worried about deflation rather than inflation. There is a smaller
group concerned about hyperinflation, but the theoretical
underpinnings have been missing up to now that would justify how this
could be possible. There is an explanation though and this indicates that
hyperinflation can not only take place, but that is can happen suddenly.
...read article
Retail Sales Drop in May Shouldn't Be a The
U.S. government released its Retails Sales report for May this morning.
Analysts expected an increase, but sales dropped 1.2%. The markets
were surprised that American consumers were spending less even though
the unemployment rate is stuck around 10% and credit card debt has
dropped for 19 months in a row.
The expectations for higher retail sales came from the massive amounts
of federal government stimulus being pumped into the economy. There
is a $1.6 trillion dollar budget deficit projected for fiscal year 2010 (the
deficit for 2009 was $1.42 trillion) and this money is making all the
economic numbers look much better than they would otherwise. The
deficit alone is approximately 11% of the official U.S. GDP number (which
is grossly overstated), but still represents less than half of all federal
government spending. Investors should ask themselves: Given all of this
support, how weak is the U.S. consumer?.read article